House hunting in the Dominican Republic: a tropical complex for $ 2.5 million

House hunting in the Dominican Republic: a tropical complex for $ 2.5 million

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This 12.5-acre property extends over the peak of an extensive mountain range in the rural area of ​​Pedro Brand, a suburb northwest of Santo Domingo, the capital of the Dominican Republic.

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

The 10,932 square foot home was built to order for current owners in 2010 using coral stone (native to the Dominican Republic), concrete, marble, precious wood and ceramic tile. It surrounds a landscaped sloping patio that offers clear lines of sight from the interior to the pool deck and the lush mountains beyond.

The project, which maximizes soft northern natural light, aims to facilitate indoor and outdoor living and preserve the natural environment, said Cesar J. Herrera G., owner of Provaltur International, which owns the list.

“When you walk through the main door and onto the terrace, you think, ‘Where am I?’ Herrera said, noting that Compostela del Camino looks less like a Pedro Brand building par excellence and more like what is typically built in the Dominican Republic’s resort communities. “Being in the middle of the mountains inside a huge house like this is not normal.”

From the closed entrance, a 200 meter stone wall and well-kept tropical vegetation curves with the sidewalk before reaching the covered parking lot. On the left is the two-story staff house with a tiled roof and coral stone, followed by the patio, which is visible through a slatted sliding door.

The main house develops in layered sections. The open-air lobby, which has a protrusion of concrete blocks and steel beams and walls lined with polished coral stone, gives way to the minimalist patio in front and a discreet staircase to the right connecting to the second-floor guest rooms and bathrooms.

A shy cascading lagoon and a small grassy area flank the steps and landing of the patio, leading to the large room, with marble floors and 20-foot ceilings. Large glass and wooden doors open onto an outdoor lounge, jacuzzi and infinity pool with panoramic views of the green mountains.

The dining room, located to the left of the great room, has a low ceiling and built-in shelves. It connects to a large kitchen with access to a corridor and staircase to the second floor, where the master bedroom occupies a large part of the space. Includes closet, private bathroom covered in marble and private terrace. A large gym covered with natural light and another guest room are also on this level.

To the right of the large room there is an office with shelves on all walls. Both spaces have access to the outside deck.

A walking trail follows the curve of the house and the pool, then continues down the slope, leading to a series of basic items of country life: a greenhouse, chicken coop, rabbit pen, stables and dog house.

Unlike many nearby properties, Compostela del Camino was designed as a permanent residence, said Herrera. It is close to the Autopista Duarte highway, 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 another 30 minutes away. Punta Cana, one of the country’s popular beach destinations, is 135 miles to the east.

In the past five years, an expanding tourism industry, a stable economy and friendly tax laws have brought a wave of international buyers to this Caribbean country of about 11 million residents. According to local officials, the coronavirus pandemic has done little to slow this momentum, even with the travel ban hurting business.

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

Agents also reported an increase in the number of Dominican citizens looking to rent to a single family with backyards and gardens away from the city centers of Santo Domingo and Santiago. Sales to local residents increased dramatically during the summer, and when the country’s borders reopened in July, international interest quickly returned.

“Investors and people who could afford a second home here were buying like crazy,” said Melquis Segura, an agent for Santo Domingo-based ApartamentosRD. “Even with all this activity, prices have stabilized. I have not experienced any growth greater than 7 to 10 percent. “

Typically, the Dominican Republic’s busiest shopping season is from December to March, but pent-up demand and renewed interest in vacation properties have made the market accelerate in three months. In September, foreign buyers were arriving, he said Sergio Llach, chief executive of Sotheby’s International Realty in the Dominican Republic.

Mr. Llach said that at least 15 percent of its customers visited listings virtually and bought things unseen in 2020, while others who were able to travel visited as soon as it was allowed (the country has three international airports). Many were regular visitors. “People who shop in the Dominican Republic have been here at least 10 times,” he said. “They are confident in what they want.”

At 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 last year increased by 23% throughout 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 usually in US dollars.)

Inventories below $ 1 million decreased, as a result of the initial wave of activity and candidates for sellers withdrawing their homes from the market. Llach said that before the pandemic, there was usually a surplus of low-cost housing that would take two to three years to sell. Sales are now taking six months. “My personal opinion is that this year, only the majority of the large and sophisticated properties will be sold, since everything under $ 1 million has been purchased,” he said. “There will be less sales in 2021, but with a higher overall value.”

In other seaside destinations, such as Sosúa, Las Terranas and Punta Cana, the growing interest from foreign investors has led to a flood of residential construction. Cheryl Henderson, regional operating director for Keller Williams Punta Cana, said at least 90 projects are underway in the area, ranging from seaside villas in tourist communities to blocks of condominiums and single-family houses adjacent to golf courses. In the past five months, it has seen a growing trend: the region is moving beyond the condominium and retirees markets and becoming a more desirable destination for families.

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

Americans have long been the most active foreign buyers in the Dominican Republic, thanks to their proximity and ease of transportation to and from the island. Currently, thirteen nonstop flights operate to Santo Domingo from the United States (mostly from New York and Miami) and Canada.

“About 30 percent of our clientele are American citizens,” said Mr. Llach. He also noted a recent increase in Puerto Rican and French investors: “France is off the charts this year”.

Dominicans who live mainly in the United States and Europe, but buy a second home in their home country, also represent a significant share of the market, said Alberto Bogaert, a Mudate sales associate and president of the Asociación de Agentes y Empresas Inmobiliarías. “Many of them can buy in Santiago or Santo Domingo, where they have a family,” he said, “or they will buy more inland in Punta Cana.”

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

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

Salespeople also hire lawyers to handle the closings and pay the real estate agent’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 cash or receive financial assistance from external creditors, as interest rates at banks in the Dominican Republic are much higher than in the United States, said Segura.

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

The annual property tax for 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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