Buying in Punta Cana: areas and what to consider before you decide

Punta Cana is the area I get the most questions about, especially from Dominicans living abroad and from foreigners who fell in love with it on vacation. It is an active market, with plenty of new supply and prices for almost every budget. That is exactly why it pays to arrive with clear ideas.

The first thing I explain is that "Punta Cana" is used to describe a very wide area. Two properties advertised as Punta Cana can be forty minutes apart, with very different lifestyles and prices.

The areas, broadly speaking

Each area has its own character. This is a general guide, not a rule:

• Bávaro. The most established area, with beaches, supermarkets, schools, clinics and restaurants. There are apartments at every price range. It is the most practical option if you plan to live there year round.
• El Cortecito and Los Corales. Close to the beach and to Bávaro's daily life, with a lot of tourist activity. They are sought after for vacation rentals, so prices tend to be higher.
• Cabeza de Toro. Quieter and more residential, with beach access and less traffic.
• Uvero Alto and Macao. Further north, with wide beaches and less construction. They feel more secluded, but they are further from services and from the airport.
• Verón and the areas along the highway. Many of the people who work in the area live here. Prices are lower and there are new projects, but the beach is a drive away.

Before you fall in love with a project, visit the area at different times of day, or ask me to show you the surroundings on a video call. The real distance to the beach, the supermarket or the airport changes the experience a great deal.

First, decide why you are buying

The right area depends on your goal:

1. To live. Prioritize services, schools, healthcare and road access.
2. To vacation and rent out when you are away. Check that the condominium allows nightly rentals and who would manage them. Read vacation rentals in the DR first.
3. As a rental investment. Run the numbers with realistic occupancy and costs, not with what the listing promises. A beautiful property is not always a profitable one.

What to check in Punta Cana

The title and the project

As with any purchase, request the certificate of the property's legal status and make sure the land has been surveyed and registered. If you buy off plan, review the project's permits and the developer's track record. There are many projects under construction in Punta Cana, and not all of them have the same backing. I explain this in detail in buying off plan safely.

CONFOTUR

Some projects are approved under Law 158-01 on tourism development, which can exempt the transfer tax and other taxes for a period of time. Do not assume a project has it: ask for the approval resolution and confirm that it covers the unit you are buying. I explain it in CONFOTUR projects.

Fees and utilities

In many condominiums in the area, the maintenance fee is charged in US$ and can be high, especially when there are pools, large gardens, security or beach access. Also ask who supplies electricity and water. In some areas the service is provided by the development itself or by a private company, at rates that differ from those in the city.

The climate

Sun, salt and humidity wear down windows, air conditioning and metal faster. Include that in your maintenance budget. Hurricane season runs from June to November, so ask about the type of construction, the windows and the insurance.

The beach

In the Dominican Republic, beaches are public. "Beachfront" or "with beach access" does not mean the beach belongs to the condominium. Read carefully what the listing includes.

An example with numbers

Let us take a US$180,000 apartment in a project without CONFOTUR. On top of the price, plan for:

• Transfer tax (3%): US$5,400.
• Legal fees (1% to 1.5%): US$1,800 to US$2,700.
• The monthly maintenance fee, the property tax (IPI) if it applies, insurance, and furniture if you plan to rent it out.

In what it really costs to buy a home I explain each of these costs.

If you buy from abroad

Many of my clients in Punta Cana live abroad. You can buy without being in the country, with a power of attorney and a lawyer you trust. I explain how in buying from abroad.

You can see the options available in the Punta Cana region. If you tell me why you want to buy and what your budget is, I will gladly help you work out which area suits you in a virtual meeting.