Interest in the Dominican Republic’s real estate market is increasing quickly, following a short-lived downturn due to pandemic-related travel restrictions. The DR’s home market has flourished over the last few years, thanks to robust tourist development and luxury boutique and international hotels’ arrival in the area, paired with strong financial principles.
As it pertains to those interested in building new construction property in the DR, keep in mind new developments in the DR has been slow ever since the financial crash of 2008. The various existing villas currently on the DR market are between 5-10 years old.
In any event, developing a brand-new construction is a good concept for those that can afford it and manage the process. Currently, the majority of domestic construction is geared towards the high-end market.
In the DR, the engineer, architect, and builder may all work for the same company. There are many well-qualified and world-renowned designers and builders, and bids can be requested from any of them.
Cost of Purchasing Land
If you want to build a new construction property in the DR, you must factor in purchasing the land for your new property. Keep in mind that lot sizes in the DR are calculated using square meters (SQM). This means that 1 acre converts to approximately 4,046.86 or 4,047 SQM.
In remote locations (defined as land within 5 kilometers of a major city), you can expect to pay $30 per SQM on the lower end. Gated communities cost roughly $50 SQM. More than likely, the freshwater source would more than likely be a community reservoir. Also, the property’s septic system is more than likely confined on site. For the most part, a gated community in a remote location would cost approximately $60,000 or as high as $100,000 for the land.
Oceanfront property near the beach will cost approximately $500 per SQM on the higher end. If the structure is separated from the oceanSQM by a golf fairway or cliff, the structure site may cost approximately $200 to $300 SQM. Overall, a beachfront/ocean view property could cost approximately $1 million for a ½ acre.
Construction Cost in the DR
Construction cost for building a new home in the DR will fluctuate based on the finish materials and type of construction you want to build. The average cost is $600.00 per SQM for excellent quality construction, which might include the usage of these materials:
which might include the usage of these materials:
- Mahogany wood cabinets, doors, and closets
- Imported Ceramic for floors and bathroom
- Imported bathroom fixtures
- Red clay tile for the rooftops
- French-type Sliding glass windows
Constructing a brand-new vacation home in the DR can vary, starting at $450,000 or exceeding One Million, depending on its location. Overall, you can budget on spending at least $2,500 for each SQM.
Normally, a high-quality construction project cost roughly USD $875 per SQM, which means that the cost is approximately USD $94 per sq. ft., not including any fancy extras, like a pool, a fancy kitchen, expensive tiles, etc. costs can go up to USD $1,000 or more for a luxury class villa.