Dominicans Abroad and Middle Class Punta Cana Residential Real Estate

[NALs]

According to this article which appears today in Hoy newspaper, most of the buyers of properties in most middle class geared developments in Punta Cana/Bávaro are Dominicans from abroad, namely those living in the USA. This was explained when commenting from where are most of the buyers in "Pueblito Caribeño," a project in Vista Cana where the houses will emulate the Spanish Colonial architecture seen in Santo Domingo's Colonial Zone, Old San Juan (PR), Coro (Venezuela), Portobelo (Panama) and Cartagena (Colombia).

It also says after Dominicans, other buyers are chiefly from the USA and Canada (doesn't say if most are Gringo Americans, Gringo Canadiens, Hispanics from those countries and/or from other Latin American countries that have lived for many years in the USA/Canada, etc.)

80% of the project is already sold amounting to more than US$100 million.

Aerial views of Vista Cana including the area that will be "Pueblito Caribeño." This video is from about 3 weeks ago.

If Dominicans are the driving force of middle class residential construction in the Bávaro/Punta Cana area, does a similar trend is seen in other Dominican tourist areas? It goes without saying Dominicans are most of the buyers and builders of residential homes/buildings outside the tourists areas. It's also well known that several projects in Bávaro/Punta Cana are lead mostly by the purchases of Dominicans, but this is the first time Dominicans are mentioned as most of the buyers in most middle class residential projects in Bávaro/Punta Cana and not just in a few. The area is known for having projects where most of the residents are from Europe/North America and others where most are Dominicans, but this means projects where Dominicans are the majority are more than previously thought.

This is a recent change or it has been the case for a while?

 

[NanSanPedro]

Enjoyed the video, no high pressure sales talk. It looks nice but not for me at this point.

 

[XQT]

A positive development.
Income through renewable sources for the DR.

Going forward to grow the DR needs to focus on collaborative projects with international partners.
Funding, technology and know how is needed to grow inadequate infrastructure and industry.
The DR has a lot of untapped potential.
Only large scale projects with International partners can do this, with profit sharing.

The glaring negative is,
"most of the buyers properties in most middle class geared developments in Punta Cana/Bávaro are Dominicans from abroad, namely those living in the USA."
The cause is the income disparity in the DR.
The majority of citizens simply cannot participate due to lack of income and opportunities in the DR.
The potential of the DR and its citizens has to be developed with education, development of infrastructure and manufacturing.
Taking advantage of the labour pool and low cost of labour, relative to other regions.

US, EU, and Chinese partners are options to achieve this.
Manufacturing, transport, roads, ports, tourism.
An aggressive long range view and plans are needed to move forward from stagnation.

In 2021, the national gross income per capita in the Dominican Republic increased by 930 U.S. dollars (+12.97 percent) since 2020. Therefore, the national gross income in the Dominican Republic reached a peak in 2021 with 8,100 U.S. dollars. Notably, the national gross income has been, with the exception of 2020, continuously increasing over the last years.

National income per capita Dominican Republic 2023| Statista

The national gross income per capita in the Dominican Republic increased by 630 U.S.

www.statista.com

The percentage of income held by the richest 20 percent of the population in the Dominican Republic declined to 45.7 percent in 2021. This marks the lowest percentage of income held during the observed period.

Income held by top 20 percent in the Dominican Republic| Statista

In 2022, the percentage of income held by the richest 20 percent of the population in the Dominican Republic decreased by 1.7 percentage points (-3.72 percent) compared to 2021.

www.statista.com

https://databankfiles.worldbank.org/public/ddpext_download/poverty/33EF03BB-9722-4AE2-ABC7-AA2972D68AFE/Global_POVEQ_DOM.pdf

 

[Big]

looks like an industrial town in East Africa.

 

[Big]

A positive development.
Income through renewable sources for the DR.

Going forward to grow the DR needs to focus on collaborative projects with international partners.
Funding, technology and know how is needed to grow inadequate infrastructure and industry.
The DR has a lot of untapped potential.
Only large scale projects with International partners can do this, with profit sharing.

The glaring negative is,
"most of the buyers properties in most middle class geared developments in Punta Cana/Bávaro are Dominicans from abroad, namely those living in the USA."
The cause is the income disparity in the DR.
The majority of citizens simply cannot participate due to lack of income and opportunities in the DR.
The potential of the DR and its citizens has to be developed with education, development of infrastructure and manufacturing.
Taking advantage of the labour pool and low cost of labour, relative to other regions.

US, EU, and Chinese partners are options to achieve this.
Manufacturing, transport, roads, ports, tourism.
An aggressive long range view and plans are needed to move forward from stagnation.

In 2021, the national gross income per capita in the Dominican Republic increased by 930 U.S. dollars (+12.97 percent) since 2020. Therefore, the national gross income in the Dominican Republic reached a peak in 2021 with 8,100 U.S. dollars. Notably, the national gross income has been, with the exception of 2020, continuously increasing over the last years.

National income per capita Dominican Republic 2023| Statista

The national gross income per capita in the Dominican Republic increased by 630 U.S.

www.statista.com

The percentage of income held by the richest 20 percent of the population in the Dominican Republic declined to 45.7 percent in 2021. This marks the lowest percentage of income held during the observed period.

Income held by top 20 percent in the Dominican Republic| Statista

In 2022, the percentage of income held by the richest 20 percent of the population in the Dominican Republic decreased by 1.7 percentage points (-3.72 percent) compared to 2021.

www.statista.com

https://databankfiles.worldbank.org/public/ddpext_download/poverty/33EF03BB-9722-4AE2-ABC7-AA2972D68AFE/Global_POVEQ_DOM.pdf

Just like in any country sacrifices must be made to purchase real estate. Many save for years and years before entering the real estate market. Purchasing an expensive automobile, jewelry and cloths and refusing to work more hours is a choice.

 

[bob saunders]

looks like an industrial town in East Africa.

Maybe the colors, but otherwise, nope.

 

[Big]

Maybe the colors, but otherwise, nope.

being from Africa , Yup

 

[bob saunders]

Just like in any country sacrifices must be made to purchase real estate. Many save for years and years before entering the real estate market. Purchasing an expensive automobile, jewelry and cloths and refusing to work more hours is a choice.

Dominican friends of ours just moved from NYC to North Carolina. They were depressed in NY, spending 60 percent of income on rent. They bought a house just outside Raleigh with a mortgage that is 400 a month less than their rent in NY, plus they are happy. They figure with both of them working and two sons contributing they will own the house in ten years. They still own a very nice house and property in Jarabacoa. Not all Dominican are at either the bottom or top of food chain. There are plenty in the middle.

 

[Big]

Dominican friends of ours just moved from NYC to North Carolina. They were depressed in NY, spending 60 percent of income on rent. They bought a house just outside Raleigh with a mortgage that is 400 a month less than their rent in NY, plus they are happy. They figure with both of them working and two sons contributing they will own the house in ten years. They still own a very nice house and property in Jarabacoa. Not all Dominican are at either the bottom or top of food chain. There are plenty in the middle.

This area you speak of in North Carolina "Raleigh" is a very good area. It is close to Duke University and UNC, the tech and medical triangle. That investment is a wise one. Here, as anywhere, sacrifices must be made to buy real estate. Purchasing a 70-thousand-dollar SUV is probably the worst decision a Dominican can make.

 

[scotia]

My sister in law, husband, 3 adult kids and all grandkids now live in Charlotte, NC. Within a few years of immigrating 3 families all owned their own homes three. They are definitely all doing better, financially, than they were in San Pedro. In the meantime they have also all bought properties in the D.R.

 

[keepcoming]

Most of my spouse's family who live in the USA have bought homes in the DR. They say it is for when they retire. But I have asked a few about buying in Punta Cana but they said if they did it would be for a vacation home. We actually had someone send us information about Vista Cana. It is not somewhere we would buy but I can see where Dominicans would maybe buy for a second home, weekend, vacation home. We know several who have done that, not in the Punta Cana area but other areas. I do not know if Vista Cana would be a good area to invest for say using the property as a vacation rental. The beach access is not that close.

 

[MariaRubia]

I have a friend who is a property developer and builds housing complexes mainly in Bavaro. He said that most of the good stuff went years ago. Americans and Europeans want beachfront, or close to the beach, and now what is being built is mainly ways away from the beach. It's priced at a point which is accessible to Dominicans living abroad, and he said that almost all of his buyers these days fall into that category. I think that a lot of the AIrBnB's in Santo Domingo have also been bought by US-based Dominicans.

 

[RDKNIGHT]

vista cana they say there's going to be illuminated golf at night I believe this when pigs fly I had a sales woman swear to me that it's almost completed I told her let's go in your car and take a look what she showed me was fields of dirt no Fairways no sandbunkers no nothing.....

I told her let's put it in the contract I will buy a place but if there's no illuminated golf in 2 years I get my place for free the words out of her mouth was no Señor we cannot do that than I can't not buy

 

[AlaPlaya]

I have a friend who is a property developer and builds housing complexes mainly in Bavaro. He said that most of the good stuff went years ago. Americans and Europeans want beachfront, or close to the beach, and now what is being built is mainly ways away from the beach. It's priced at a point which is accessible to Dominicans living abroad, and he said that almost all of his buyers these days fall into that category. I think that a lot of the AIrBnB's in Santo Domingo have also been bought by US-based Dominicans.

The amount of development in Punta Cana is dizzying, and you're right: it's all a decent distance from the beach. They've just cleared a big track of land across from Barceló and I suspect it will hold another gigantic development like vista cana.

 

[windeguy]

looks like an industrial town in East Africa.

I was going to say it was "Florida like" -- FLAT as can be. But a nice place for Dominican Yorks to invest.

 

[PJT]

The amount of development in Punta Cana is dizzying, and you're right: it's all a decent distance from the beach. They've just cleared a big track of land across from Barceló and I suspect it will hold another gigantic development like vista cana.

The development is unrestricted and will stress the limited water table of the area. Growth is OK but the natural infrastructure has to support it. Eventually the fresh/sweet water levels subside more. The ocean salt water will encroach into fresh water wells making them useless. Do not think there have been any environmental impact studies done or published if done.

Regards,

PJT

 

[windeguy]

The development is unrestricted and will stress the limited water table of the area. Growth is OK but the natural infrastructure has to support it. Eventually the fresh/sweet water levels subside more. The ocean salt water will encroach into fresh water wells making them useless. Do not think there have been any environmental impact studies done or published if done.

Regards,

PJT

I was just reading a story about how water tables in various parts of the world are being mixed with salt water as far as 15 miles inland.
(Pumping water from the water table actually changed the tilt of the earth.)

So salty well will be a real concern in the Punta Cana region.

https://www.science.org/content/article/humanity-s-groundwater-pumping-has-altered-earth-s-tilt

 

[NALs]

The amount of development in Punta Cana is dizzying, and you're right: it's all a decent distance from the beach. They've just cleared a big track of land across from Barceló and I suspect it will hold another gigantic development like vista cana.

That land belongs to Barceló (unless they recently sold it; Barceló the Spanish company, not the Dominican rum.)

 

[william webster]

I was just reading a story about how water tables in various parts of the world are being mixed with salt water as far as 15 miles inland.
(Pumping water from the water table actually changed the tilt of the earth.)

So salty well will be a real concern in the Punta Cana region.

https://www.science.org/content/article/humanity-s-groundwater-pumping-has-altered-earth-s-tilt

I read that article..... interesting
Melting ice caps etc and the emptying of the water table have disrupted the earth on its axis... the tilt

My well water has no salt but I'm not down at sea level

 

[AlterEgo]

I read that article..... interesting
Melting ice caps etc and the emptying of the water table have disrupted the earth on its axis... the tilt

My well water has no salt but I'm not down at sea level

Ours doesn’t either, and we’re very close to Caribbean. We just had to have our submersible pump serviced after over 30 years down there, and while we were at it we replaced the pipes, found out it’s 80’ down.