Luxury Real Estate Market

Feb 15, 2005
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How considerable has the recent recession in the US affected the luxury real estate market in DR.
Are operators lowering their luxury home prices in light of this?
Finally, is the European client keeping the prices pretty steady?
 

Kemo

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Nov 2, 2006
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How considerable has the recent recession in the US affected the luxury real estate market in DR.
Are operators lowering their luxury home prices in light of this?
Finally, is the European client keeping the prices pretty steady?

My experience despite some Public relation comments you will received in this Forum that everything smells like roses is that the Market is slowing down considerably. Casa de Campo is very slow and prices have fell 10% or so, but in general values in Casa de campo are staying their ground. There are allot of owners in Casa de Campo from the U.S specially from South Florida where the housing recession is hitting the hardest and you may run into people that are desperate to sell but generally is slow but there is no crisis and Casa de Campo is very stable in the long term. Cap Cana prices are very Inflated????? there allot of resales that cannot simply sale. Lately what is occurring in Cap Cana that allot of people that have economic difficulty and cannot sale their options are just simply walking away and letting the project keep their deposits. Cap Cana has allot of Investment project so it is the biggest development in the D.R but there is allot to go and the economic situation hitting banks all over the world is having negative impacts in Cap Cana. In regards to Punta Cana resort or grupo Punta Cana this is the most stable financial group in Punta cana they own the Airport and they are getting incredible revenues from it as well as the Punta Cana Resort community is smaller and very exclusive and even thou sales are slow allot of wealthy americans and europeans are still investing in the Punta cana resort. Roco Ki sales are very sluggish but the hotel and group investment are very sound but they are not having Cap Cana fall out of people dropping out of their investment because they can sale or transfer their option, but new sales are slow like Casa de Campo and Cap Cana. Allot of the smaller developments in Bavaro are struggling you will see allot of construction sites with few or no workers this low end developments are private investment mainly from Miami Base investors suffering the credit crunch. I Invested in Cap Cana sometimes my negative and realistic comments contradict a group of Dominicans that simply feel i am just talking bad about their country instead of looking at the reality of the situation you will have some forummers post allot of Periodicals and magazine articles that are simply P.R they themselves have never been investor anywhere they just simply like to hide the dirt under the rug. One thing that you have to understand in the D.R is that Newspapers, Magazines, tv and Government work together in an effort to control any negative or truthful press that may hurt the Touristic economic development of the Island. You will never get full disclosure from magazines,tv or Periodicals you will simply get marketing and more marketing...
 
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Feb 15, 2005
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So smaller and larger luxury real estate sales are stagnant. Is there any movement of buyers from Europe hoping negociate better deals on these properties?
 

mikey007

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kemo you have a truthful insight into the re market but do you have any knowledge about the recent surge in juan dolio thanks
 

Kemo

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In regards to Juan Dolio i have never been involve in any investment there but i have a friend that is very much involve and what he has told me so far is that it has slowed but the Metro Country club development is doing fine. Neverthless i will ask him in detail.
 

Kemo

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So smaller and larger luxury real estate sales are stagnant. Is there any movement of buyers from Europe hoping negociate better deals on these properties?



Right now Small and large are Slow to very slow!!!! like i told you in those developments the main investors where American and Spanish citizens and allot of those people are opting to leave their deposits because they are unable to close or continue because banks are simply not lending!!!! Don't be fool Europeans do not make the amount of money Americans do. Collective GDP per capita of the EU 25,000 comparing it to a near 50,000 GDP per capita in the U.S. There are only a few European countries like Switzerland and pockets in Europe where you find people with real money to spend. The Europeans that have money are actually flocking in small numbers to the Florida Markets and California Markets to get a piece of the American dream taking advantage of the buyers market in those areas. My suggestion is if you are going to invest in the D.R Casa de Campo and the Punta cana resort & club are your best options but invest Small and wait. I am worry with this credit crunch and recession in the U.S and price of Oil at 110 dollars a Barrel and the amount of debt incur by the Dominican state and by some of the projects like Cap Cana we could start seeing Defaults and this will create a crisis worst than the 2003 crisis in the D.R.
 
Jan 9, 2004
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So smaller and larger luxury real estate sales are stagnant. Is there any movement of buyers from Europe hoping negociate better deals on these properties?

As a result of the depressed real estate market in parts of Florida, the rise of the Euro and the Looney having parity with the dollar, a large percentage of European buyers, and to a lesser extent Canadian, are now actively purchasing in South Florida.

Two or three years ago, those buyers were flocking to the D.R. because of the high price of real estate in South Florida. Today the price gap has closed significantly and many now prefer the U.S. from a political stability, property rights and ease of access perspective. That is not to say D.R. real estate is dead, but rather, at the moment, its pricing may be out of line with other competing locations and as a consequence "real" or "actual" sales may have slowed.


Respectfully,
Playacaribe2
 

Kemo

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As a result of the depressed real estate market in parts of Florida, the rise of the Euro and the Looney having parity with the dollar, a large percentage of European buyers, and to a lesser extent Canadian, are now actively purchasing in South Florida.

Two or three years ago, those buyers were flocking to the D.R. because of the high price of real estate in South Florida. Today the price gap has closed significantly and many now prefer the U.S. from a political stability, property rights and ease of access perspective. That is not to say D.R. real estate is dead, but rather, at the moment, its pricing may be out of line with other competing locations and as a consequence "real" or "actual" sales may have slowed.


Respectfully,
Playacaribe2



AMEN???? what i have been saying.

I don't think the real state market in the D.R is Dead but there is going to be a deflation of prices that will caused the market to depressed and slow more. Casa de Campo has been the premier luxury community in the D.R for over 30 years i don't think a slow market like we are seeing now is going to cause a crisis in that resort and in Punta Cana resort & club. But Cap Cana and other developments are going to suffer and suffer. I also want to point out that places like Puerto rico where prices have drop and the level of certainty is like the U.S are agressively putting laws in place to attract those buyers away from the D.R. Also Panama is doing very well as is Costa Rica where prices are more affordable and there is more return per dollar than the D.R.
 

Kemo

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I am just waiting for NALS and Pichardo and others to start posting periodicals- magazine articles to cover the truth none of them are investors they are just simply Dominicans that get angry at admitting the truth and this sentiment is all over the country
 
Feb 15, 2005
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OK, these comments look very realistic from my perspective. Understandably, there will be corrections in the RE market in DR since the prices reached South Beach proportions.
Now if you were to develop in DR, where and what type of development would stand the current economy.
 

Kemo

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I have pointed out where i got my information i don't need to justify myself to Periodicals and Magazines posted by people that never invested a dime in their life. I right now trying to sell my option at a lost and even that is not selling so tell me??????
 
Nov 17, 2007
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Hi Richard,
I bought a condo at la estancia, 15 minutes away from La Romana, and it should be finished (after delays) this May.
La Estancia doesn't seem to be well known with investors, so I would like to hear any comments on this development. thanks/edwin/spain
 

STEVE G.

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Apr 2, 2006
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... But Cap Cana and other developments are going to suffer and suffer ... I am worry with this credit crunch and recession in the U.S and ... the amount of debt incur by the Dominican state and by some of the projects like Cap Cana ... I right now trying to sell my option at a lost ( in Cap Cana ) and even that is not selling so tell me??????

I wonder why you can?t sell your option in Cap Cana ? :surprised ... it reminds me about the other thread ...http://www.dr1.com/forums/real-estate/73035-investor-warning-juan-dolio.html :laugh:
 

aegap

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Mar 19, 2005
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I wonder why you can?t sell your option in Cap Cana ? :surprised ... it reminds me about the other thread ...http://www.dr1.com/forums/real-estate/73035-investor-warning-juan-dolio.html :laugh:

He had his own similar one, ..


http://www.dr1.com/forums/real-estate/71053-trump-pulling-out-cap-cana.html


I wonder if Trump is still pulling out, or if those 'reliable' industry sources are still sticking to their statements about the Donald breaking getting out of the partnership Cap Cana.
 
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Kemo

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Kemo

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Feb 15, 2005
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I think a problem is that many builders are going the condo approach to increase profits. I think that the culture in DR is more of small developments and homes and not condo deelopments. There seems to be an over abundance of condos on the market.
 

STEVE G.

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I think a problem is that many builders are going the condo approach to increase profits. I think that the culture in DR is more of small developments and homes and not condo deelopments. There seems to be an over abundance of condos on the market.

That's the main reason why there are many mixed developments appear on the market now : area for condos and areas for villas . But it should be organized and planned from the very beginning . You can find now even small beach developments consisted of a beach front condo and some villas in the garden side allowed to use the beach club of this condo and other facilities .
 

NALs

Economist by Profession
Jan 20, 2003
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Kemo, your agenda is so crystal clear that I don't need to say much.

Afterall, to this day, you are the only person that I know who has said, and I am quoting here:

"The DR was better off with Hipolito." :surprised

Don't deny it, unless you want for me to dig it up and put the link to the post where you said such.

Hm, what could a person who wishes another "Hipolito" on the DR possibly want with his negative posts? It can't be good, that's for sure because even people who were pro-Hipolito don't want that knucklehead back, but you.... well....:ermm:

Look at the bright side, at least everyone can click on your screenname and read your posts. Its all crystal clear.

-NALs