Punta Cana is not a promise: it is a consolidated market. While other Caribbean destinations still struggle to recover pre-pandemic levels, the eastern Dominican Republic keeps breaking historical records in connectivity, occupancy and residential appreciation. For the international investor seeking Caribbean exposure in hard currency, the numbers speak for themselves.
In this article we analyze exclusively public data with cited sources. None of it represents the return of any specific project.
An airport that keeps growing
Punta Cana International Airport (PUJ) closed 2025 with 11.1 million international passengers, a 9.9% increase over the previous year. In December of that year it recorded over 900 weekly flights, a historical record for any Caribbean terminal outside Cancun.
Source: Punta Cana International Airport — official press room.
These numbers are not circumstantial. PUJ has been the busiest private-traffic airport in the Caribbean for the past decade, and its approved 2025-2028 expansion plan includes a new terminal that will raise capacity to 16 million passengers per year.
For the real estate investor, air connectivity is the most reliable proxy for future lodging demand: more direct flights mean more tourists, more vacation-rental demand and, consequently, upward pressure on residential prices.
Hotel occupancy: Bavaro leads the country
The Bavaro – Punta Cana area recorded an average hotel occupancy of 86.5% so far in 2025, according to data published by ASONAHORES (National Association of Hotels and Restaurants) through Infotur Dominicano. The national average stood at 76%, making Bavaro the area with the highest demand pressure in the country.
Source: ASONAHORES / Infotur Dominicano (YTD 2025).
Sustained occupancy above 80% has direct implications for the residential market: vacation-rental operators report short-term occupancy rates above the hotel average in high season, and the shortage of quality supply pushes nightly rates up.
A dollarized market: no currency risk
The Dominican Republic operates with a free dollar. Purchase, rental, resale and repatriation of funds are carried out in US dollars with no exchange restrictions for non-residents. This removes one of the most common frictions in emerging markets: currency risk.
Source: Central Bank of the Dominican Republic.
For investors from North America, Europe or Latin America, operating in USD simplifies accounting, eases financing and allows returns to be compared directly with other dollarized markets such as Miami, Panama or the Cayman Islands.
Residential appreciation: 9-13% year over year
The most recent reports from TheLatinvestor and Properstar (September 2025) place residential appreciation in Bavaro between 9% and 13% year over year, with an 18% premium over the Dominican national average.
Source: TheLatinvestor / Properstar (Sept. 2025).
This appreciation rests on three structural factors:
- Growing international demand: a flow of buyers from the US, Canada, Europe and Latin America seeking a second home or Caribbean investment.
- Scarcity of boutique product: new high-quality supply remains limited against demand, especially in luxury and human-scale segments.
- Attractive tax framework: the CONFOTUR program offers significant tax exemptions to tourism and residential projects that meet the requirements set by law.
CONFOTUR: a tax incentive for real estate
Law 158-01 for Tourism Development Promotion (CONFOTUR) sets a framework of tax exemptions for real estate projects in areas declared of tourism interest. General benefits include exemption from property transfer tax, property tax and other levies for a defined period.
The specific details of each benefit depend on the project type and its location. Any specific figure must be validated with resident legal counsel in Punta Cana, as conditions may vary between projects.
The weight of tourism in the Dominican economy
The tourism sector represents approximately 18% of the national GDP of the Dominican Republic and captures over 20% of the foreign direct investment entering the country. Punta Cana is the epicenter of this activity, concentrating most of the high-end hotel supply and international air traffic.
Source: WTTC Caribbean Report 2025.
The indicators presented are public data from cited sources. They do not represent the performance of any project nor constitute investment advice. For detailed information on specific opportunities, we request a private meeting by appointment.
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