All eyes on the Dominican Republic

Not too long ago was the Dominican Republic considered an unlikely place for luxury resorts and residences. Only last year, French developer Pierre Schnebelen had the foresight to develop Costa BayanA along the northeast coast near the border with Haiti. It is a huge project composed of more than 13,000 properties on thousands of acres of oceanfront property.

If the future of the Dominican Republic real estate was still unsure, now the success of the Dominican Republic being the new luxury spot in the region is as bright as the Caribbean sun. Who else can seal its fate but the real estate tycoon Donald Trump? With the development of Trump at Cap Cana worth more than two billion dollars, more investors are swarming into the Dominican Republic.

Cap Cana on the southeast coast is an enormous project focusing on high-end hotels, golf courses, and residences.

Nothing less than luxury

Cap Cana is dubbed as “The World’s Next Great Destination”. Sitting on more than 30,000 acres of land, the plan is to have about five high-end hotels, five golf courses, and thousands of luxury residences. It is said to be the largest private community in the Dominican Republic. Located beside the international airport, Cap Cana has everything going for it.

Trump at Cap Cana is a partnership project with The Trump Organization. It would include a golf course, golf villas, estates, a condo hotel, and ocean-view residences.

The first development would be “Trump Farallon Estates at Cap Cana” consisting of 1.5-acre estates. Homeowners of the 68 estates in this project will be accorded memberships to clubs and amenities inside Cap Cana.

Growing investor interest

More and more foreign businesses are investing in the Dominican Republic. Wal-mart is reportedly expanding to the Dominican Republic and the rest of the Caribbean. A Westin is being built in the country by Starwood Resort Worldwide. Other U.S. chains are following suit.

A 50 million-dollar Ocean World opened recently on the north coast. Another group acquired 2,000 acres in Playa Grande for development. There is also the newly-completed luxurious Aquabella Beach, Spa and Marina.

European and American investors alike show much interest in luxury real estate in the country. Property prices in the Dominican Republic are rising consistently, and are expected to rise even more.

“In 1992 when I first came here, houses cost 400 Dominican Pesos (DOP) per sq. m. Now they cost DOP2,800 per sq. m. So there has been appreciation,” says Monique Frings of Dominican-Realty.com.

Fighting poverty

All these developments are strengthening the tourism industry and are generating thousands of jobs, which is a huge help for a country with an estimated 17% unemployment rate.

Nevertheless, the Dominican Republic is still the poorest country in the Caribbean next to Haiti, although the gap is very wide. In 2006, the Dominican Republic registered a GDP per capita of US$3,291. While its GDP per capita growth is only 2.39% on the average from 2001 to 2006, it grew by 4% last year.

The economy grew by 9.1% in the first quarter of 2007, as reported by the Dominican Republic Central Bank. This is slightly lower than last year’s 10.9% in the same period.