Tourism real estate captures 42% of sector investment and continues to grow

In recent years, tourism real estate architecture has experienced significant growth in the Dominican Republic and has consolidated itself as a key pillar of economic development and of the construction sector. This growth is driven by rising international demand for dream destinations and sustained investment in tourism infrastructure.

This branch of architecture has evolved beyond the traditional hotel sector and has expanded into second homes, residential complexes, private villas and short-term rental properties.

These new projects offer exclusive experiences to satisfy the demand of an audience looking not only for vacations, but also for real estate investment opportunities and quality of life. The influence of tourism real estate architecture is evident in the dynamism of the market: it drives the creation of new development hubs and generates opportunities for development and construction firms, with a multiplier effect on the Dominican economy.

In 2023, investments in tourism real estate exceeded 10 billion dollars, with approximately 2 billion invested in that year alone. According to data from the Dominican Association of Tourism Real Estate Companies (ADETI), these investments have generated more than 34,000 direct jobs and contributed around 10,000 new rooms to the tourism market, considering only member companies (source: Listín Diario).

This section of the special edition brings together a selection of outstanding projects and showcases the work of key companies in the sector that are raising standards of design and construction quality, further strengthening the country’s position as a leading tourism and residential destination.

According to ADETI, between 65% and 70% of projects in the sector correspond to tourism real estate. Luxury, sustainability and personalized experiences are some of the characteristics that enhance not only leisure offerings but also real estate projects and, according to Cuban economist and tourism development specialist José Luis Perelló, this is the segment that is gaining increasing weight.

For the expert, tourism real estate has attracted 4.527 billion dollars in investment to the country, representing 42% of a total of 10.7785 billion dollars captured by the tourism sector.

“This model not only redefines the way second homes are perceived, it also responds to growing demand for spaces that integrate high-quality hotel services and efficient management, freeing owners from traditional administrative burdens,” he noted in an article for the portal Trade Travel Caribbean.

Characteristics of tourism real estate

Investment in tourism real estate refers to the purchase of apartments, villas, condominiums or homes in tourism destinations.

Returns are generated through rental of these properties, which are acquired to produce passive income.

Tourism communities are developed as residential complexes with access to beaches, golf courses and exclusive services.

The boom we are seeing in the tourism real estate sector is due largely to tax incentives, the legal certainty offered to investors in the country and the growing demand from tourists who prefer private accommodation over traditional full-service hotels.

By: Arquitexto