Home Hunting in the Dominican Republic: A Tropical Mixture for $ 2.5 Million

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This 12.5 acre estate drapes over the top of a sprawling mountain range in the countryside of Pedro Brand, a northwestern suburb of Santo Domingo, the capital of the Dominican Republic.

The complex, known as Compostela del Camino, comprises a five bedroom, seven bathroom main house, a separate three bedroom staff house and approximately two acres of gardens with fruit trees.

The 10,932 square foot home was custom built for the current owners in 2010 using coral stone (sourced from the Dominican Republic), concrete, marble, precious wood and ceramic roof tiles. It circles around a sloping landscaped courtyard that provides clear lines of sight through the interior to the pool deck and the verdant mountains beyond.

The design, maximizing the soft natural light from the north, is meant to facilitate indoor and outdoor living and preserve the natural environment, said Cesar J. Herrera G., Provaltur International owner, who has the entry.

“When you go through the front door and onto the patio, you think, ‘Where am I?’ Mr. Herrera said, noting that Compostela del Camino looks less like a typical Pedro Brand building and more like what is typically built in the holiday resorts of the Dominican Republic. “Being in the middle of the mountains in a huge house like this isn’t normal.”

From the gated entrance, a 200-meter stone wall and manicured tropical vegetation extend with the driveway to the covered parking area. To the left is the two-story staff house with a tiled roof and coral stone, followed by the courtyard, which is visible through a slatted sliding door.

The main building unfolds in tiered sections. The open-air foyer, with an overhang of concrete block and steel beams and walls covered in polished coral stone, gives way to the minimalist courtyard straight ahead and a discreet stairwell on the right that connects to the guest bedrooms on the second floor. and bathrooms.

A cascading pond and small lawn flank the steps and courtyard landing, which lead to the great room, with marble floors and 20-foot ceilings. Large sliding glass and wood doors open to an outdoor lounge, Jacuzzi and infinity pool with unobstructed views of the green mountains.

The dining room, to the left of the great room, has a lower ceiling and built-in shelves. It connects to a large kitchen with access to a hallway and stairs to the second floor where the master bedroom takes up much of the space. It includes a walk-in closet, a marble-lined bathroom and a private terrace. A large gym shrouded in natural light and another guest bedroom are also located on this level.

To the right of the great room is a study with bookcases on each wall. Both areas have access to the outside terrace.

A walking trail follows the curve of the house and pool and then continues down the hill, leading to a series of country life staples: a greenhouse, chicken coop, rabbit hutch, horse stables and dog house.

Unlike many other properties in the area, Compostela del Camino is designed as a permanent home, Ms. Herrera said. It is close to the Autopista Duarte motorway, which takes drivers to Santo Domingo, on the south coast of the island, in about 30 minutes. Las Américas International Airport in Santo Domingo is a further 30 minutes. One of the country’s popular beach destinations, Punta Cana is located 135 miles to the east.

Over the past five years, a growing tourism industry, a stable economy and friendly tax laws have brought a wave of international buyers to this Caribbean country of approximately 11 million residents. According to local agents, the coronavirus pandemic has not slowed that momentum, even as travel bans hampered businesses.

(As of Feb. 22, the Dominican Republic had reported 235,882 Covid-19 cases and 3,048 deaths, according to the New York Times coronavirus map.)

Agents also reported a rise in the number of Dominican nationals looking for single-family homes with backyards and gardens away from the city centers in Santo Domingo and Santiago. Sales to the local population increased dramatically during the summer, and when the country borders reopened in July, international interest quickly returned.

“Investors and people who could afford a second home here bought like crazy,” said Melquis Segura, an agent at ApartamentosRD in Santo Domingo. “Despite all this activity, prices have stabilized. I have not seen growth of more than 7 to 10 percent. “

Normally, the Dominican Republic’s busiest buying season is December through March, but pent-up demand and renewed interest in vacation properties accelerated the market by three months. By September, foreign buyers were pouring in, said Sergio Llach, the CEO of the Dominican Republic Sotheby’s International Realty.

Mr. Llach said at least 15 percent of its customers visited the listings virtually and purchased unseen sight in 2020, while others who could travel visited as soon as possible (the country has three international airports). Many were regular visitors. “The people who buy in the Dominican Republic have been here at least 10 times before,” he said. “They are confident in what they want.”

In Casa de Campo, a luxury gated community in the city of La Romana, about an hour east of Santo Domingo, the number of villas sold increased by 23 percent last year about 2019, according to Casa de Campo Real Estate. Villa prices range from $ 350,000 to more than $ 6 million, depending on size, age, and proximity to the ocean. (The Dominican Republic uses the Dominican peso, but real estate transactions are often made in US dollars.)

Inventory below $ 1 million has dwindled due to the initial buzz of activity and potential sellers pulling their homes off the market. Mr. Llach said that before the pandemic, there was usually a surplus of lower-end homes that would take two to three years to sell. Now the sale lasts six months. “My personal view is that this year only the majority of the large, luxury properties will be sold as everything under $ 1 million is included,” he said. “There will be fewer sales in 2021, but generally at a higher value.”

In other beach destinations, such as Sosúa, Las Terranas and Punta Cana, the rising interest from foreign investors has sparked a wave of housing construction. Cheryl Henderson, regional operations director for Keller Williams Punta Cana, said there are at least 90 projects underway in the area, ranging from oceanfront villas in resort communities to condominiums and adjacent single-family homes on a golf course. Over the past five months, she has seen a growing trend as the region is moving beyond the apartment and retirees market and becoming a more desirable destination for families.

“They are not here for the ‘start-up’ international investment,” she said. “Instead, they pay $ 350,000 to $ 600,000 for a large house with a beautiful yard.”

North Americans have long been the most active foreign buyers in the Dominican Republic, thanks to its proximity and ease of travel to and from the island. There are currently 13 direct flights to Santo Domingo from both the US (mostly New York and Miami) and Canada.

“About 30 percent of our clientele are US citizens,” said Mr. Llach. He also noted a recent spike among Puerto Rican and French investors: “France hasn’t been in the charts this year.”

Dominicans living mainly in the US and Europe but buying a second home in their native country are also a significant part of the market, said Alberto Bogaert, a sales associate at Mudate and president of the Asociación de Agentes y Empresas Inmobiliarías. “A lot of them may buy in Santiago or Santo Domingo, where they have family,” he said, “or they may buy more inland in Punta Cana.”

There are no restrictions on foreigners buying property in the Dominican Republic.

It is common for international buyers to hire a local attorney to facilitate a purchase. Mr. Herrera said the fee for a property like Compostela del Camino could be around $ 12,000.

Sellers also hire attorneys to handle closings, and they pay the broker’s commission.

Closing costs include a 3 percent transfer tax to the seller, as well as a notary fee (up to 1 percent) and a 1.3 percent stamp tax.

Domestic mortgage loans are available, but most foreign buyers pay in cash or receive financial assistance from outside lenders, as bank interest rates in the Dominican Republic are much higher than in the US, said Mr. Segura.

Spanish and English; Dominican peso (1 peso = $ 0.02)

The annual property tax on this home is 1 percent of its value ($ 2,495).

Cesar J. Herrera G, Provaltur, 1-809-697-5117; provaltur.com

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