It is important to examine the economic aspects that make property in the Dominican Republic a promising investment option. Below are some of the key factors you should be aware of during your investment research.
A little research will demonstrate that the Dominican Republic offers some of the lowest property prices to be found in the Caribbean. This, along with capital growth averaging between 20% and 30% p.a., means buyers can expect to benefit from significant returns on their investments. The Dominican Republic’s bid to raise its standards to meet top international criteria means it is fast becoming as successful a tourism property location as its Caribbean successors – all great news for those who invest in Dominican Republic property at today’s prices.
The low cost of living and favourable exchange rate with European and US currencies means the Dominican Republic is attractive to those wishing to make an economically efficient investment.
The cost of maintaining and managing your Dominican property is lower than on many of the other islands, while you can enjoy the same tropical attributes. The Dominican Republic seems intent on keeping its status as one of the most reasonably priced Caribbean destinations.
In 2008 inflation comes in at 5.8%, down from 8.20% in 2007, further indicating bright prospects for buyers in the Dominican.
Through the Dominican government’s firm intent to transform its tourism sector into one of the most dynamic in its economy, the industry steams ahead with exceptional growth. A continuous stream of new hotels is going up and luxury new resort developments are underway to propel the Dominican’s tourism sector still further. Under the 2008 – 2012 Tourism Plan, a massive 5 million annual visitors are targeted for 2012. This represents an increase in annual visitors of around 170,000 tourists, bringing with it an as yet un-sated demand for tourist accommodation of all kinds.
Economic expansion in the Dominican Republic is partly due to rocketing tourism and ongoing plans to increase this sector still further. The Tourism Plan mentioned above is well underway and bringing with it an improved tourism infrastructure through the construction of many new resort developments.
Expansion is also the result of the Central America-dominican-republic Free Trade Agreement, and free trade zones have duly been established to encourage diversity in economic activity. Foreign investment is pouring in from large multinational hotel chains such as Four Seasons, Fairmont, Conrad and Ritz Carlton as well as Wal-Mart and business tycoon, Donald Trump, further endorsing the potential of this location.
GDP is currently growing at an annual rate of 7.2% (est. 2007).
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