Dominican Republic’s luxury housing market dives after years of flight
Santo Domingo.- Dominican Republic’s luxury housing market jumped so high in recent years it dramatically changed the skyline of large cities in just one decade, while the boom in demand for those properties also led to a growing supply.
The global financial crisis however led to a drop in buyers, and its current sag has lasted several years.
Real estate expert Javier Herrera, quoted by outlet Listin Diario, said the glut has significantly surpassed demand, prompting developers to hold off on new projects.
He notes however that the market is in a recovery phase on tighter profit margin due to the effects of the global crisis, resulting in smarter investors are more careful buyers. “Before, people bought a property on paper and obtained profit of around 20% when they resold. In 2007 you could sell homes at twice the price they were bought, but this is becoming less feasible, because the profit isn’t the same as a few years ago.”
Category: DR News |