ADETI highlights the expansion of real estate tourism and its investment appeal
Fifteen years ago, real estate tourism was not well known in the Dominican Republic; it hasn’t been mentioned so often. However, the fact that there is 10 billion US dollars invested in the sector is a reason to mention it.
These are investments placed in different points of the national geography through the fifteen members of the Dominican Association of Tourist Real Estate Companies (ADETI). This private organization brings together the main tourist real estate companies in the country, such as Cana Rock, Ciudad Destino Cap Cana, Costasur/Casa de Campo, Club Hemingway, Green One Playa Dorada, Grupo Puntacana, Grupo Velutini, Kaynoa, Metro Country Club, Playa Grande Golf & Ocean Club, Playa Nueva Romana, Puntarenas, Rincón Bay, Terra RD Partners (INICIA asset manager) and Tropicalia (Organización Cisneros).
In real estate tourism, foreign investment has been a key element. For example, 70% of investments in Cap Cana are American and Canadian; the other part is mixed, between European and Dominican.
“Over the past two years, Dominican investments have increased, and there is an explanation for this,” said ADETI President Jorge Subero Medina.
He explained that “these are Dominicans who came to look for a first house, or Dominicans who started to make different investments to make this house, so that a foreigner could buy it. They did it as developers, which effectively means that many Dominicans have become real estate developers”.
He said that tourism is one of the pillars of the Dominican economy, and this has been highlighted in the current context of global crisis (due to the covid-19 pandemic and then the Russian-Ukrainian conflict); if we consider the fact that in the recovery of the country, the sector has been of great importance in terms of recovery, according to El Caribe.
“For example, in May, the monthly indicator of economic activity recorded an annual growth of 4.8%, for a cumulative change of 5.6% in the first five months of 2022, compared to the same period of 2021. Seen in particular, hotels, bars and restaurants grew by 35% (Central Bank data),” he added.
The also executive president of Cap Cana said that “this has happened within general tourism, the contribution of real estate tourism has not been accurately measured, so ADETI has started to address the problem a bit and wants see it as soon as the tourist arrives in the country and segmentation, which has not yet been done with ventilation.
Regarding the documentation, Subero Medina informed that “this continues to worry the real estate tourism sector and generates stress in having to go, at least, eleven times to different institutions to obtain a permit for a tourist real estate project” .
“Depending on the lot, you have to go, for example, to Mensura Catastral, Registro de Títulos, City Hall, Ministry of Tourism (Mitur), Confotur, Obras Públicas, Ministry of Finance, Dirección General de Impuestos Internos (DGII), to Codia (if it is construction), and to see the share of the condominium regime,” he added.
The president of ADETI considered that very concrete measures have been taken in favor of the digitization of permits because it eliminates bureaucracy, prevents people from getting their hands on documents and increases delays. It raises them because it allows that even if an establishment has closed at three o’clock in the afternoon, “you have the possibility of downloading a document until eleven fifty-nine in the evening”.