December 2005 was a different time in Punta Cana and the Dominican Republic. At the time, the Punta Cana and Dominican Republic real estate markets were experiencing what some would call atypical growth.
Demand far outstripped supply, a thriving influx of international buyers, the lowest interest rates in Dominican real estate history. Both US dollars and Dominican pesos, national and international economic stability, high rental income, and mega-tourism developments. The wildflowers blooming skyrocketed, international financing, bond-issuing, free white label real estate crowdfunding platform cheap press and tourism numbers at an all-time high. The buyers were looking for someone who could develop or sell close to the island’s tourism hubs.
Those were the good old days! It was about being in the right place at the right time.
Many felt there was no reason Punta Cana and the Dominican Republic weren’t known as “Home of the World.” However, it was also emphasized that the real estate industry must take a number of necessary measures to enable orderly further development.
Fast forward to the end of 2008. The real estate industry is also experiencing a completely atypical situation today. Which unfortunately cannot be described as positive, but it cannot be described as negative either. It goes back to a standardized real estate market that is considered normal. Supply and demand more balanced than in previous years.
Any real estate developer can tell you that selling an entire development in less than a year is not normal. Normal would be at least two years to sell a small to medium sized development and perhaps more time for the larger. More ambitious developments within gated communities. Of course, it’s normal to think that things are cooling down now that we’re past the “BOOM” that we’ve been experiencing for the last few years. Rather than cool down I would call it business as usual, back to normal, supply and demand in the balance!
The excellent geographical position allows us to have a tropical climate all year round. The cold countries stay cool. We continue to have some of the best white sandy beaches and turquoise crystal clear waters Legal framework. No restrictions on foreigners, equal property rights Economic stability Social stability Personal security. The Dominican Republic’s crime rate is low compared to other Caribbean neighbors Modern and adequate. Transportation and telecommunications infrastructure ( airports, seaports, highways, telephone, internet). There is room for improvement, but we are on the right track. Extensive additional amenities (water sports, golf, restaurants, grocery stores, resorts, casinos) Ecotourism The Dominicans – Always friendly and hospitable!
Beyond these points, we must acknowledge that foreign investment has been encouraged by the local government. According to statistics from the Center for Exports and Investment (CEI-RD), foreign direct investments more than doubled in 2008. Investments in 2008 totaled $2.35 billion, a 55.1% increase over 2007.
Just last week, on December 12, 2008, Dominican Republic President Leonel Fernandez broke ground on the $1.4 billion VistaCana Resort & Country Club in Punta Cana. President Fernandez and the project’s main promoter, Salvador Termín, presided over the groundbreaking ceremony, which was also attended by Tourism Minister Francisco Javier Garcia. Mr. Termin spoke about the global crisis we are experiencing and stressed that they had prepared for the crisis. “We have chosen to keep investing because we do. We believe in the Dominican Republic as it continues to be a safer place to invest with lower risks compared to other places around the world.”
Venezuelan investors started construction of the tourist complex on six million square meters of land. The complex will feature 6,000 residences, a 100-room business hotel, a 27-hole golf course. And a 180,000-square-foot man-made lake integrated into the beachfront area, which will cost around $1.4 billion. This will bring 20,000 new jobs to Punta Cana when complete.
President Fernandez said, “This development is a testament that amid the global crisis we live in today. Foreign companies like VistaCana’s developers are testifying that the Dominican Republic still offers economic and financial security for global investors, developers and end users offers.” Equally has. 1,500 homes were purchased by a mutual fund for North American retirees in Washington DC and more than 200 units were sold to individuals.”
President Fernandez added that he was present alongside VistaCana at the landmark event for the Playa Nueva La Romana mega-development project in LA Romana just last week acquired Spain’s Grupo Piñero. Owner of the Gran Bahia Principe resorts, which represent $2.5 billion in foreign investment. In addition, President Fernandez will be present with the Prince of Monaco at the Punta Perla Groundbreaking Ceremony in Cabeza de Toro near Punta Cana in the coming days with an additional investment of US$1.6 billion from the United Kingdom
That’s a total of $5.5 billion in foreign investment in December alone for the real estate industry. These are large numbers from world-renowned companies and investors who have very deep pockets to conduct feasibility and market studies. You have decided that the Dominican Republic is the safest place with the best investment opportunities in the Caribbean and perhaps the Western Hemisphere.
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What do we need to do as industry leaders and real estate professionals?
Find end users: Avoid customers looking for an immediate capital gain. This refers to buyers/flippers who have neither the intention nor the ability to complete the real estate transaction. The best way is to ask for a sizable deposit, which the buyer/pinball player will lose if they decide to walk away from the real estate transaction. Pre-qualify buyers: Provide buyers with the correct forms and contact information for pre-qualification with local banks. This will prevent future headaches.
The most important thing is to understand that we have a good product. We are in a market cycle where change is inevitable and considered normal. There is no need to panic. Punta Cana and the Dominican Republic have become world travel destinations. We have many more great years in selling real estate in Punta Cana and the Dominican Republic. fundraisingscript All we have to do is roll up our sleeves, keep working ethically, be honest, creative and proactive. We have no doubt that sooner or later Punta Cana and the Dominican Republic are destined to become HOME OF THE WORLD!
We expect a lot of good things in 2009 and are very confident that we will make a difference and stand out from the rest of the crowd. With the alliances we are forming with real estate agencies from around the world, we will definitely position ourselves as the #1 real estate company for developers, buyers, sellers and investors looking for the right company to use when buying or selling real estate in Punta supports Cana and the Dominican Republic. Hope we can be there for you in 2009! We’ll help you find the right home in paradise!