IL Postcard

Get Your Piece of Undervalued Caribbean…Before Prices Rise

Date: 01/15/2008

Wednesday, Jan. 16, 2008
Samana Peninsula, Dominican Republic

Read more about beachfront property in International Living Postcards— your daily escape

The Dominican Republic is one of the most undervalued Caribbean destinations. And although the Samana Peninsula isn’t the cheapest area in the Dominican Republic, recent economic progress suggests this hidden gem may be one of the best locations for investors looking for real estate.

The Samana Peninsula extends into the Atlantic Ocean from the northeastern side of the country, and is anchored by three main towns—Samana, Las Terrenas, and Las Galeras—and the government has vowed to make this destination the “prized jewel” of the country…

New tax incentives have been put in place to encourage property investment. A new law cuts 50% off annual property taxes, abolishes duties on imported household items, and reduces duties on imported motor vehicles.

But the biggest indication that the Semana Peninsula is ready for a boom in property investing and tourism is the new $70 million international airport. El Catey International Airport, located along the north coast of the peninsula, recently opened its doors to the public. American Airlines' affiliate American Eagle now offers daily flights from San Juan, Puerto Rico, to Samana, with tickets starting at $198 plus tax. And rumor has it that Delta will begin flights from Atlanta to the Samana in the near future.

Not only will the new airport open up the peninsula to the rest of the world, but history would suggest that real estate prices will begin to climb. India is a good example of this type of growth—after the announcement of the new Bangalore International Airport in 2004, northern Bangalore and surrounding areas experienced a 15% increase in real estate prices. Similarly, real estate prices in the capital, New Delhi, appreciated 10% to 15% in 2007 after the colossal upgrade of the Delhi International Airport.

As well as the multimillion-dollar airport and beneficial tax incentives, the government is financing a new expressway, estimated for completion in May 2008. The Domingo-Samana highway will connect the eastern zones of Santo Domingo to the once-estranged peninsula, reducing travel time from four hours to less than two.

Pay particular attention to Las Terrenas, the largest and fastest-growing town on the Samana Peninsula, conveniently located 30 minutes from El Catey. Here it is possible to buy a two-bedroom, European-style condominium with a Jacuzzi and pool close to the beach for $72,000. A similar beachfront condominium in the Bahamas was recently listed at $150,000.

A more luxurious option is a Dominican-style home conveniently located near Las Ganeras, equipped with three bedrooms, two-and-a-half bathrooms, views of the mountain and ocean, a patio, and plenty of free land to expand. Price: $330,000.

Only a two-minute walk to the beach in Las Terrenas, a three-bedroom, two-bathroom condo with an additional loft-bedroom recently sold for $115,000.

Janaan Harp
For International Living

P.S. For more information on the properties listed above, contact Dan Hussman from DR Paradise.

Editor’s note: For the full scoop on the D.R. and other real estate markets poised to boom this year, see our newest report, Where to Invest Your Dollars in 2008—International Living’s Top Picks. This report isn’t available to buy…but subscribers to International Living get it free. Become a subscriber…and get your free report.

Read related articles:

- Who Else Wants a $70,000 Home in the Caribbean?

- Three Questions You Must Ask Before Buying a Piece of Real Estate Overseas

- Buying Your Own Piece of Paradise...It's Easy in the D.R.