3 Reasons Why You Should Be Investing In Punta Cana
Global property investors, particularly North Americans, have begun to set their sights on the Dominican Republic.
And I don’t blame them.
The DR is a place where an investor can get a high quality rental property that doesn’t require a huge initial investment. Plus, non-residents and foreigners have access to local bank financing.
The economy is growing. Infrastructure is developing. And the DR remains the number one tourist destination in the Caribbean, welcoming visitors from North America, Europe, and South America.
Considering that places like Santo Domingo, La Romana, Las Terrenas, Punta Cana, and Puerto Plata are all viable in terms of real estate investment, you’ve got plenty options when it comes to where to invest in the country.
That said, I believe that, right now, Punta Cana is the best place to invest in the DR.
And here’s the reasons why…
Reason #1 – Punta Cana Is The DR’s Top Tourist Destination
The DR is the undisputed king of tourism in the Caribbean… and Punta Cana is its crown jewel.
It’s by far the most popular tourist destination in the Dominican Republic.
Punta Cana accounted for nearly 60% of the 6.18 million international visits that the DR received in 2017.
According to Mastercard’s 2018 Global City Destination Index, Punta Cana ranked as the top city for play and leisure above tourist destinations like Cancun and Orlando, Florida. The research showed that 99.9% of visits to Punta Cana was for vacation versus business.
The tourism market here is established yet still growing which presents investors, particular those looking for rental yields, a low-risk high reward opportunity.
Reason #2 – Tourism Expansion To Punta Cana Continues
One of the biggest indicators of tourism expansion in a locale is the increase of direct international flights.
In addition, it gives you a snapshot of tourism demand. Major airlines are not going to add direct international routes to cities where there’s no demand from their customers to fly there.
In the case of Punta Cana, the customer demand is there and the airlines have responded in kind.
Frontier Airlines, for instance, has added direct international service to Punta Cana from major US cities like Orlando, Cleveland, Cincinnati, and St. Louis starting this month.
Delta has reinstated its seasonal service to Punta Cana from Boston.
Vacation Express, a tour operator and subsidiary of Sunwing Airlines, has added direct and non-stop flights from Detroit to Punta Cana in addition to offering several all-inclusive packages.
Reason #3 – Rental Demand Is Growing
As a result of tourism expansion and new visitors each year to Punta Cana, the demand for short-term rental accommodations is growing.
Large hotel operators are taking advantage of the opportunity here.
For example, Spain-based, Melia Hotels, recently opened two five-star beachfront hotels. The first, an adult-only hotel, featuring 538 rooms including 136 suites and the other, a family-friendly property, with 609 rooms including 154 suites.
Another Spanish company, BG Hotels, just broke ground on a five-star project in the Uvero Alto region of Punta Cana which will have 345 rooms ranging from junior to premium suites. It’s the company’s first property in the Caribbean.
Individual investors have an opportunity to take advantage of this rental market as well. Thanks to online booking sites like AirBnb, the entire hospitality game has changed.
Now, there’s a huge segment of tourist who prefers to stay in a fully-equipped luxury condo versus a hotel or resort… and this is where you come in.
In fact, if you’d like to capitalize on this emerging market, then you should take a look at some of our portfolio of investment real estate options in Punta Cana.
All of our developments, which sit either directly on the beach or have beach access, feature top-notch amenities including access to some of the amenities at the neighboring luxury resorts.
It’s also important to note that Noval develops properties with the real estate investor in mind. That is, all of our units are 100% turnkey investments as we’ll manage the property on your behalf taking care of everything from maintenance, bill-paying, collecting rent, and checking in renters upon arrival.
The prices of our units start at US$119,000 plus closing costs and cost of an all-inclusive furniture package.
Developer financing is also available.
Even more, based on the current rental trends, average market rental rates, and projected occupancy, yields of up to 10% are achievable… and that’s net.
To learn more about our real estate products, get in touch with one of our investment consultants at [email protected]