Dominican Republic Home Hunt: $ 2.5 Million Tropical Compound

Dominican Republic Home Hunt: $ 2.5 Million Tropical Compound

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This 12.5-acre property hangs over the peak of a vast mountain range in Pedro Brand, a northwestern suburb of Santo Domingo, the capital of the Dominican Republic.

The complex, known as Compostela del Camino, has a main house with five bedrooms, seven bathrooms, a separate three-bedroom house for staff and about two hectares of gardens with fruit trees.

The 10,932-square-foot home was built specifically for the current owners in 2010 by coral stone (from the Dominican Republic), concrete, marble, hardwood and ceramic roof tiles. It surrounds a sloping, landscaped courtyard that offers clear views through the interior to the pool deck and the green mountains beyond.

The design, which maximizes the soft natural light from the north, is intended to facilitate indoor and outdoor living and preserve the natural environment, said Cesar J. Herrera G., owner of Provaltur International, which has the presentation.

When you walk through the front door and walk to the terrace, you think, ‘Where am I? ‘Herrera said and noted that Compostela del Camino looks less like an important Pedro Brand building and more like what is usually built in the Dominican Republic’s resort communities. “It’s not normal to be in the mountains in such a big house.”

From the entrance porch, a 200-foot stone wall and tropical vegetation lined the driveway before reaching the undercover parking lot. To the left is the two-storey staff house with a tiled roof and coral stone, followed by the courtyard visible through a sliding door.

The main house unfolds in low parts. The foyer with concrete block and steel beam overhang and walls covered with polished coral stone makes way for the minimalist courtyard straight and a discreet staircase to the right that joins the guest bedrooms on the second floor. and bathrooms.

A waterfall with a waterfall and a small lawn leads along the stairs and the interior, leading to the large room with marble floors and 20-foot ceilings. Large glass and wood sliding doors give access 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 joins 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 has a walk-in closet, an en-suite bathroom with marble carpeting and a private terrace. A large gym covered with natural light and another guest room are also on this level.

To the right of the great room is a study with bookshelves on each wall. Both spaces have access to the outside deck.

A walking trail follows the curve of the house and the pool and then descends the hill, leading to a series of staples: a greenhouse, chicken coop, bunny pen, horse stables and dog house.

Unlike many nearby properties, Compostela del Camino was designed as a permanent residence, said Mrs. Herrera said. It is within about 30 minutes of the Autopista Duarte motorway, which takes drivers to Santo Domingo, on the southern shore of the island. The Las Américas International Airport in Santo Domingo is another 30 minutes away. Punta Cana, one of the most popular beach destinations in the country, is 135 km 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 with approximately 11 million inhabitants. According to local agents, the coronavirus pandemic has slowed the momentum little, even though travel bans have hampered businesses.

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

Agents also reported an increase in the number of Dominican citizens seeking single-family rentals with backyards and gardens away from downtown Santo Domingo and Santiago. Sales to locals increased dramatically during the summer, and when the country’s borders reopened in July, international interest quickly returned.

“Investors and people who could afford second homes here went crazy,” said Melquis Segura, an agent at ApartamentosRD in Santo Domingo. “Even with all these activities, prices have stabilized. I experienced no growth of 7 to 10 percent. ”

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

Mr Llach said that at least 15 percent of its customers had virtually toured through deals and were bought unseen in 2020, while others who were able to 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 ten times,” he said. “They are confident in what they want.”

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

Inventories below $ 1 million have declined as a result of the initial rush of activity and prospective sellers removing their homes from the market. Mr. Llach said that before the pandemic, there was usually a surplus of cheaper homes that would take two to three years to sell. Now the sales take six months. “My personal opinion is that this year will only sell the majority of the large, high-quality properties, as everything has been raised under $ 1 million,” he said. “In 2021, there will be fewer sales, but at a higher value.”

In other beach destinations such as Sosúa, Las Terranas and Punta Cana, the growing interest of foreign investors has led to a spate of residential construction. Cheryl Henderson, local chief operating officer of Keller Williams Punta Cana, said there are at least 90 projects underway in the area, ranging from villas by the sea in resort communities to apartment blocks and golf course adjoining single-family homes. Over the past five months, she has seen a growing trend: the region is moving beyond the housing and retirement markets and is becoming a more popular destination for families.

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

North Americans have long been the most active foreign buyers in the Dominican Republic, thanks to the proximity and comfortable travel to and from the island. Thirteen uninterrupted flights are currently flying to Santo Domingo from both the US (mostly from New York and Miami) and Canada.

“About 30 percent of our customers are U.S. citizens,” he said. Llach said. He also noted a recent increase in Puerto Rican and French investors: “France was no longer in the rankings this year.”

Dominicans living primarily in the U.S. and Europe but buying second homes in their home country also make up a significant portion of the market, said Alberto Bogaert, an associate of Mudate and president of the Asociación de Agentes y Empresas Inmobiliarías. . “Many of them may be buying in Santiago or Santo Domingo, where they have family,” he said, “or they will 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 lawyer to facilitate a purchase. Herrera said the fee for a property like Compostela del Camino could be around $ 12,000.

Sellers also hire attorneys to finalize foreclosures, and they pay the real estate agent’s commission.

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

Domestic mortgage lending is available, but most foreign buyers pay cash or receive financial assistance from credit providers, as interest rates from banks in the Dominican Republic are much higher than in the US, Segura said.

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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