A surplus of upscale real estate is for sale in the Dominican Republic, mainly reflected in luxury apartments on the market. Real estate specialist Javier Herrera told Listin Diario that there are more apartments for sale than buyers.
Melido Marte, owner of Remax realtor, says the problem is that while demand is up 50%, new property offered by promoters and builders has tripled.
Furthermore, the president of the Dominican Builders and Housing Promoters Association (Acoprovi) Fermin Acosta said that a study on the offer and demand of housing in urban zones carried out in March 2013 showed there is a need for 900,000 housing units, mostly in the low-cost bracket. The demand for upscale dwellings is estimated at 14,000, mainly in Greater Santo Domingo and Santiago, the two largest cities. The same study showed that only 16.7% of potential homebuyers in Santo Domingo and Santiago want to move into a high rise and most of them (42% in the National District and 50% in Santiago) expect to wait at least a year to make the purchase. 82% of people seeking upscale dwellings are willing to pay up to US$250,000.
Fermin said that new tax rules and increases in the tax base have had a chilling effect on the purchase and ownership of upscale dwellings. He concluded by saying that the lack of legislation to minimize the risk of renting dwellings also has a negative effect on people investing in real estate to rent.
www.listin.com.do/economia-y-negocios/2013/8/8/287649/Sobreoferta-afecta-sector-inmobiliario-de-lujo-RD