More foreign tourists fly in to the Dominican Republic than any other island in the Caribbean, though the Bahamas receive just about as many tourists on cruise ships. Over the past decade, the country had a building boom, much of it fueled by foreign buyers. Because most of them still pay in cash, the economic crisis has not generated a significant number of foreclosures. Even so, it did push prices down by about 20 to 25 percent, Mr. Houisse said.
The amount of new development, too, has fallen, by 70 to 80 percent, as a result of skittishness about global financial troubles, said Sandy Parekh, broker-owner of Remax Coral Bay Realty. “A lot of people that were going to develop projects have all put them on hold,” he said, “and there’s still very few projects that are starting at the moment.”
Prices, however, have now stabilized, and the market for the few available new homes is strong, said Philip Weiser, managing director of the real estate agency Carlton International. “The market for resale properties still has to recover,” he said. “There are many middle-range products remaining on the market, but quality properties sell very well.” Read the full article on the NY Times.