Reasons why you should invest in Punta Cana
Globally, investors in the real estate sector, particularly North American ones, have begun to set their sights on the Dominican Republic. The Dominican Republic is a place where an investor can obtain a high-quality rental property that does not require a large initial investment. In addition, non-residents and foreigners have access to local bank financing.
The economy is growing, infrastructure is developing, and the Dominican Republic 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 Puerta Plata are viable in terms of real estate investment, you have plenty of options when it comes to where to invest in the country. That said, Punta Cana is the best place to invest in the Dominican Republic. Punta Cana is the main tourist destination in the Dominican Republic The Dominican Republic is the undisputed king of tourism in the Caribbean. And Punta Cana is the jewel in the crown. It is by far the most popular tourist destination in the Dominican Republic.
Punta Cana represented almost 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 was ranked as the best city for gaming and leisure above tourist destinations such as Cancun and Orlando, Florida. Research showed that 99.9% of visits to Punta Cana were for vacations versus business. The tourism market has established itself but continues to grow, presenting investors, particularly those seeking rental returns, with an opportunity for high reward and low risk. The expansion of tourism to Punta Cana continues. One of the greatest indicators of the expansion of tourism in a locality is the increase in direct international flights. In addition, it gives you a snapshot of tourist demand. Major airlines are not going to add direct international routes to cities where there is no demand from their customers to fly there. In the case of Punta Cana, customer demand is there and the airlines have responded. Frontier Airlines, for example, has added direct international service to Punta Cana from major US cities like Orlando, Cleveland, Cincinnati and St. Louis starting this month. Delta has restored its seasonal service to Punta Cana from Boston. Vacation Express, a tour operator and subsidiary of Sunwing Airlines, has added direct, nonstop flights from Detroit to Punta Cana, as well as offering several all-inclusive packages.
Rental demand is growing As a result of the expansion of tourism and new visitors arriving in Punta Cana each year, the demand for short-term rental accommodation is growing. The big hotel operators are taking advantage of the opportunity here. For example, the Meliá Hotel Chain based in Spain recently opened two five-star hotels facing the sea. The first, an adults-only hotel, with 538 rooms, including 136 suites, and the other, a family establishment, with 609 rooms, including 154 suites. Another of the Spanish companies, BG Hotels has just started a five-star project in the Uvero Alto region, Punta Cana, which will have 345 rooms, from junior suites to premium suites. It is the company's first property in the Caribbean. Individual investors also have the opportunity to take advantage of this rental market. Thanks to online booking sites like AirBnb, the entire hospitality game has changed. Now, there is a large segment of tourists who prefer to stay in a fully equipped luxury condo instead of a hotel or resort. In fact, if you want to capitalize on this emerging market, you should take a look at our portfolio of Punta Cana real estate investment options. Located directly on the beach or with beach access, all of our developments feature top-notch amenities, including access to some of the amenities at nearby luxury resorts.
It is also important to note that at Punta Bay and Noval Properties develops properties with the real estate investor in mind. That is to say, all our units are 100% guaranteed investments, since we manage the property on your behalf and we will take care of everything, from maintenance, bill payment, rent collection and registration of tenants upon arrival. Prices for our units start at US$119,000 plus closing costs and the cost of an all-inclusive furniture package. Developer financing is also available. Furthermore, based on current rental trends, average market rental rates and projected occupancy, yields of up to 15% can be achieved.
Source: Revista Mercado-Dominican Republic
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