Cabarete and Sosúa on the Dominican Republic’s North Coast are quickly becoming the go-to destinations for investors seeking luxury beachfront real estate with solid returns. Gross yields typically range from 6 to 9%, with well-managed short-term rentals achieving up to 12% annually.
Once known for kite-surfing and laid-back tourism, the North Coast has evolved into a serious investment corridor. Demand from U.S., Canadian, and European buyers is climbing, and regions like Cabarete, Sosúa, and Puerto Plata are now competing head-to-head with Punta Cana for premium property attention.
Lifestyle Meets Luxury
The North Coast offers something rare in the Caribbean — true beachfront living with authenticity. Investors here enjoy natural beauty, privacy, and high-end design — without the crowded, resort-driven atmosphere of larger tourist zones.
Why Buyers Are Moving North
- Boutique beachfront developments
- Organic cafés, international schools, and wellness centres
- Kite surfing, yoga, and cultural festivals
- Gated communities with ocean views and 24/7 security
- Year-round warm weather and ocean breezes
This isn’t a short-term resort play. It’s a lifestyle investment built for those staying, not just visiting.
Market Data — Price & Infrastructure Snapshot
| Property Type | Cabarete | Sosúa | Punta Cana (Comparison) |
| Oceanfront Villa | ~$600K – $2M+ | ~$500K – $1.5M+ | ~$500K – $2M+ |
| Luxury Condo | ~$180K – $500K+ | ~$200K – $600K+ | ~$250K – $700K |
| ROI (Gross) | ~6 – 9% (occasionally 12%) | ~6 – 9% | ~6 – 9% |
Infrastructure Projects Driving Appreciation
- Upgraded Puerto Plata International Airport (POP) and new concession deal
- Road and transport links connecting Cabarete, Sosúa and Santiago
- Fibre-optic and high-speed internet widely available across communities
- Active investment into luxury hotels and mixed-use redevelopments
The combination of lifestyle demand and infrastructure investment positions the North Coast as an early-phase growth market with strong upside potential.
Key Investment Zones
Cabarete
The Caribbean’s kiteboarding capital has transformed into a haven for entrepreneurs and digital nomads.
- Gated communities like Sea Horse Ranch and Haciendas El Choco
- Walkable beachfront with cafés, organic markets, and boutique condos
Sosúa
A luxury-value alternative to Punta Cana, offering larger villas at competitive pricing.
- Ocean-view homes and long-term rental potential
- Strong infrastructure — hospitals, bilingual schools, and shopping
- Mixed-use communities targeting expats and investors
Puerto Plata
An urban revival is underway around Playa Dorada and the cruise zone, with new mixed-use projects and modern luxury developments breathing life into historic neighbourhoods.
Competitive Advantage — Why Invest Here
- Lower price per square metre than Punta Cana
- Stronger off-season occupancy from long-stay rentals
- More land and space per dollar — ideal for villas and estates
- Authentic Caribbean culture balanced with premium living
- Controlled development keeps supply tight and values stable
For investors balancing ROI and lifestyle, the North Coast delivers both — and still has room to grow.
Buying Luxury Property in the DR
- Work with a real-estate lawyer experienced in North Coast transactions.
- Confirm title and deslinde (land survey) before closing.
- Consider a local corporation for multi-unit portfolios.
- Review HOA terms in gated communities.
- Hire local property management if you plan to rent.
Pro Tip
Properties within CONFOTUR-approved developments may qualify for up to 15 years of tax relief — including waived transfer tax (3%) and annual property tax (IPI). Always verify project certification before purchase.
Get in touch with international real estate advisors.
Frequently Asked Questions
It blends authentic island living with high-end comfort and solid rental returns — a rare combination in the Caribbean market.
Yes. Tight inventory and international demand keep returns strong, with select villas and condos achieving gross yields up to 12%.
Ocean-view villas start around $500K and condos from $180K — a compelling value play compared to Punta Cana’s price per square metre.
