.
Dominican
Republic: Caribbean frontier poised to boom
By Suzan
Haskins
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October 2006
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US$1 equals
33.85 Dominican Republic peso
In 1492, when
Columbus spotted the coral-rimmed island he later named Hispaniola, he
proclaimed, “This is the fairest land under Heaven.” I have to agree.
Home to the highest mountain range in the Caribbean, the Dominican Republic—which
shares the island of Hispaniola with Haiti—offers some of the most beautiful
beaches in the world. Columbus’s journal is full of descriptions
of this beautiful island paradise. But Columbus wasn’t looking for
verdant valleys or turquoise waters and palm-lined beaches. He was
on a mission to find gold.
Noticing that
the Taíno Indians who lived there were adorned with gold ornaments
and jewelry from the deposits of gold found in Hispaniola’s rivers, Columbus
must have thought he’d found the mother lode, and he hurried back to Spain
to announce his discovery…and acquire a larger expedition.
By 1515, though,
the Spaniards realized that the gold deposits of Hispaniola were being
exhausted. Not long after that, Cortez made his conquest of Mexico,
with its fabulous riches of silver. Almost overnight, the colonies
established by the Spaniards on Hispaniola were abandoned. Only a
few thousand “Spanish” settlers remained behind (mostly the offspring of
Spanish fathers and Taíno mothers). The cattle and pigs Columbus
had introduced to the island had multiplied rapidly, so the remaining inhabitants
turned their attention to raising livestock to supply the Spanish ships
passing by, en route to the richer colonies elsewhere. Hispaniola’s
importance as a colony declined. So much so that the Spanish didn’t
even bother to try to instill Catholicism there, as they did elsewhere.
“No gold, no
God,” says a friend who lives in the Dominican Republic. “There’s
not a huge religious influence here…so there is not a lot of guilt. This
is a sexy place, and the local people here are flagrant with their sexuality.
You should see some of their dance moves!
Luxurious
digs
Some of the
most popular tourist destinations in the Dominican Republic are found along
the southern coast between Santo Domingo and La Romana. Here, you’ll
find Boca Chica, where you can wade 100 yards from shore in crystal-clear
waters and still be only waist deep with nothing but soft clean sand underfoot—perfect
for families with children. But the nightlife is what Boca Chica
is known for; it’s a swinging singles destination.
Further east
along the southern coast is the immense Casa de Campo—the granddaddy of
all Caribbean resort/residential communities—with its famous Teeth of the
Dog, Pete Dye-designed golf course, considered the class of the Caribbean
and ranked number 23 in the world by Golf magazine.
On the eastern
tip of the island is the upscale Punta Cana area, with blinding white-sand
beaches and emerald-green Caribbean waters. Punta Cana is quickly
eclipsing the rest of the country in terms of luxurious digs and high prices.
On the northern
Atlantic Coast, the 30-mile stretch from Puerto Plata to Sosua and Cabrete
is where you’ll find most tourist attractions. This area has long
been popular with expats, too, and still offers attractive property prices.
Heating
up in Samana
The Samana
Peninsula, situated along the northern coast, about 130 miles east of Puerto
Plata, is the up-and-coming hot spot in the Dominican Republic..
Las Terrenas
is the most popular town on the peninsula—especially with Europeans.
This area is currently experiencing an influx of expats who are coming
here to live. It is estimated that in the past few years the local
population has grown from 3,000 to 20,000, with about 5,000 of that number
being foreigners. The French, in particular, have put their indelible
stamp on the local economy, opening patisseries, boulangeries, specialty
boutiques, and spurring a boom in the real estate market. There is
also a large Italian and German contingent, but as yet, few U.S. expats.
I suspect that
will all change, but right now, the Samana Peninsula is hard to get to.
There are daily flights from Santo Domingo to Portillo (just a short distance
from Las Terrenas) at 10 a.m. and 4 p.m. daily. It takes five hours
to drive from Santo Domingo. Options are to fly into Puerto Plata
or Punta Cana and charter a flight or drive from there. Drive time
from Puerto Plata is almost four hours; eight hours from Punta Cana.
A new international
airport is being built at nearby El Catey, and a new highway from Santo
Domingo to Las Terrenas, slated for completion in early 2008, will reportedly
reduce the drive time to an hour. The airport, which is supposed
to open later this year, will bring in the tourists. Then this sleepy
place will change for the better—or for the worse, depending on your perspective.
The beaches
along the peninsula’s 90-mile shoreline are mostly uninhabited. According
to a friend who lives here, that’s because the locals don’t want to live
near the beaches, but prefer to live close together in towns inland, away
from the wear and tear of salt and sea.
The beaches
are solitary. There are lots of large, sheltered U-shaped bays with
long stretches of honey-colored sand, ringed by gorgeous, tall coconut
palms. The blue water is gentle and warm. And because this
area is harder to get to than other parts of the island, prices here are
lower than you’ll find further west along the north coast or near Punta
Cana.
What cost
property here?
Across the
road from the beach in Las Terrenas, a new apartment complex called Don
Cesar is being built. A luxurious two-bedroom, 1,000-square-foot
(not including the ample terrace) apartment here, with an ocean view, can
be had for $320,000. Some older apartments are just down the
road. These are built of wood in the typical Caribbean style, with
big balconies overlooking a landscaped common area and with ocean views.
Two large condo units are for sale here, with two levels and three bedrooms,
two bathrooms, and a huge balcony. They come fully furnished.
One is priced at $230,000 and the other at $255,000.-
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What about
raw land? We went to see some lots on Barbacoa and Limon Bays.
One lot in particular stood out, as it is situated on an expansive bay,
offering stunning views in both directions. Nearly 2.4 acres in size,
it was selling for $500,000.
The infrastructure
will need to be installed, but both electricity and water are nearby.
Construction costs here for a 1,200- to 1,500-square-foot house average
$40,000 to $50,000 ($35 to $40 per square foot). In comparison, we were
told that construction costs in the more developed Puerto Plata area are
close to $70 per square foot.
This place
is poised to boom. The beaches are too pretty and the property prices
too reasonable—and increased accessibility will make it even more attractive.
New signature golf courses and an ambitious marina project are being planned.
Conde Nast Traveler has called the Samana Peninsula one of the 25 best
locations in the world, and named one of its beaches (Playa Rincon) as
one of the 10 best in the world. I don’t disagree.
For more property
information on the Samana Peninsula, contact: Samana Group (Christian Francis),
e-mail: ckfrancis@samanagroup.com; or Bruce Pierson, e-mail: bruce.pierson@verizon.net.do.
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| Sidebars |
A
straightforward property purchase
In 1998, a
law was written allowing foreigners to buy property in the Dominica Republic
with the same rights and obligations as Dominican citizens. The only requirement
is that the Title Registry Offices keep a record, for statistical purposes,
of all purchases made by foreigners. Buying property here is straightforward,
especially when you rely on the services of reputable real estate brokers
and notarios (real estate attorneys).
Annual property
taxes here are low. It is commonplace to declare a value for the property
that is actually much less than what it is worth. I heard of one man who
paid a small “fee” to the tax assessor in order to “adjust” his valuation
and vastly reduce his annual tax. This is the way it’s done here. But,
most real estate and legal professionals will tell you that this is not
the way things should be done. Property taxes, even on the full value of
a property, are so low that it should not be a burden to pay your fair
share. If you decide to buy property in the Dominican Republic, be sure
you are satisfied with the advice you are given in this regard.
You should
know…
According
to the Joint United Nations Program on HIV/AIDS, the Caribbean is the second
most affected region in the world, and HIV/AIDS is currently the leading
cause of death for women of reproductive age in the Dominican Republic.
About 61,000 women are living with HIV or AIDS in the D.R., constituting
a little over half the total population with HIV/AIDS.
Ten fast
facts about the Dominican Republic
Size:
18,800 square miles.
Location:
Near the center of the West Indies. To its north is the Atlantic Ocean,
to its south is the Caribbean Sea, to the east is Puerto Rico, and to the
west is Cuba.
Geography:
Eight mountain ranges divide Hispaniola, the largest of which is the Cordillera
Central, extending from Santo Domingo northwest to Haiti. In the D.R. you
will find the island’s longest river, the Río Yaque, and both lowest
and highest points in the Caribbean, Lago Enriquillo, at 470 feet below
sea level, and Pico Duarte, which rises to 10,414 feet and is blanketed
by pine forest at it uppermost elevations.
Climate:
Average annual temperature is 78° F. Highs and lows vary with altitude
rather than seasons. At sea level, expect temperatures of 68° F to
86° F, while in the mountains, you may experience temperatures from
48° F to 75° F. On the north coast, the rainy season is October
to May. On the southern coast, the rainy season is May to October. Northern
and eastern towns generally receive more rain than southern towns.
Hurricanes:
Hurricane season is June to September. The last major hurricane to affect
the island was Hurricane Georges in 1998, which killed several thousand
people.
Population:
8.4 million, more than two thirds of which live in urban centers.
Major cities:
The capital is Santo Domingo, with more than three million inhabitants.
Other urban centers include Santiago, San Pedro, La Romana, Puerto Plata,
and Barahona.
Ethnicity:
Seventy percent of the population is of mixed ancestry (Indian, European,
and African), 15% are Caucasian (usually of Spanish origin), and 15% are
of African origin.
Government:
Democratic, but ruled by the wealthy elite. The D.R. has been a wholly
independent republic since 1865. More than a dozen political parties vie
for attention.
Economy:
Five percent of the population is considered wealthy elite, 35% belongs
to the middle sector and more than 60% are at poverty level. Unemployment
ranges from 15% to 20%.
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Editor’s note:
Suzan Haskins,
International Living’s Latin America Editor, was in the Dominican Republic
on assignment for International Living. She was joined by IL Real Estate
Editor Lief Simon and
IL Roving
Property Scout Dan Prescher. In addition to the Samana Peninsula, they
visited Puerto Plata/Cabrete and Punta Cana. Read Suzan’s full report in
an upcoming issue of Latin America
Insider, website:
www.LatinAmericaInsider.com |
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