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Dubai is an interesting place simply because the leadership there has been on a tact to diversify away from oil based revenue.  Logically the stuff is indeed running out, and unless sand starts to fetch similar prices, there really is not too much they have to sell in the world market (in terms of commodities other than oil).  And so we find the country of Dubai repositioning itself as a haven for banking, investing, high-end real estate and in short, a somewhat unique tax-free financial haven in the middle east.  Of course, if you bought real estate in Dubai ten years ago, you probably would be patting yourself on the back today.  Since then, prices of course have gone through the roof making the costs out of reach for many investors.
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Along these lines, we see some parallels in the Dominican Republic, as it's leaders also have supported The Independent Financial Center of the Americas, copied to some extent on what was done in Dubai, and is labeled as  a new international financial center at the heart of the Americas.  The Independent Financial Center of the Americas will house private and commercial banks and an electronic exchange, called LAIFEX.  Mr. Gaetan Bucher, President of the Independent Financial Center of the Americas commented:  The Independent Financial Center of the Americas is being purpose built from the ground up: the legislation, regulation, operating systems and physical infrastructure have been meticulously planned and researched. We are applying the best practice of other financial centers, to create a new model for the 21st century, which responds positively to greater regulatory scrutiny and appeals to market participants operating in an increasingly innovative marketplace.  Of course, unlike Dubai, the Dominican Republic already has a somewhat diversified economy to build upon (tourism, banking, telecommunications, exports of sugar, coffee, iron-nickel ore, etc.).  What does this mean for you, the individual investor?
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Well, one of the things happening right now is the accelerated development of the real estate market on the southern coast of the Dominican Republic (the Caribbean side where Santo Domingo, the capital of the country is located and where the new financial center will be located as well).  Which is to say, investors in the past have traditionally been focused on the north coast or the more tourist related areas and as such have often overlooked or ignored the dynamics going on with the South Shore.  Indeed, this new financial center, estimated to cost US$850 Million Dollars worth of infrastructure development is taking place in the heart of a beach front area about 45 minutes outside of Santo Domingo, and the local market there is a prime spot to take advantage of this project in terms of real estate.  But, that is not the entire story.  Real estate in the capital as well also stands to benefit, not to mention the area we like to predict could become the next Punta Cana (whereby you can still purchase beach front real estate for about US$16,000 an ACRE, not a small house lot, but an acre).
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While it is true that the new luxury sea view condos under construction and located close to the new financial center are priced in the US$250,000 range (which is still a bargain when compared to similar high end projects in the Punta Cana area), it is also true that you can find a very nice and affordable home in the capital for less than US$150,000 as well.  One of our clients, a retired couple, purchased a 2 bedroom home in a very nice middle class area of the capital recently for US$95,000.  Granted the place needed some upgrades, but for a total of US$125,000 they got themselves a nice home, a brand new kitchen and other major improvements in the process (and because the home is valued at less than RD$5 Million Pesos, or less than US$150,000 they have NO or ZERO annual property taxes as well).  Along these lines, there are many reasonably priced and worth while real estate opportunities to consider now on the south shore, including in the capital, and we have been working with a number of clients with their real estate purchases accordingly.  Which is to say, if you are looking for the next best place to invest in the Dominican Republic (either as a current home or future appreciation), then the Caribbean side of the country (the south shore) and specifically the coastal environs extending out from Santo Domingo) may be one key location to add to your investigation list.  Remember that development can move slowly in the Dominican Republic, but eventually it does happen.  Identifying a reasonably priced property or home now means you can still participate in a growth market without breaking your bank account (and while housing values continue to tumble in the US, they continue to go up in other markers not embroiled with sub-prime mortgage problems).  The idea is to identify some of these growth areas before everyone else does, and before the prices go up later on.
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For more information about purchasing real estate on the south coast (Caribbean side), please contact our office at 809-334-5387 or 809-756-1917 or via email:  realestate@dominican-republic-info.com  In addition, some of our clients have recently asked us to put together a short tour program (three or four days) to allow for interested persons to visit some of these properties we have spoken about, plus perhaps explore opportunities in banking, etc.  We are in the process of developing this, so anyone with an interest that would like to get more information can also send us an email as indicated above as well.

http://www.ifcamericas.com/
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