Apartment Hotel in Las Terrenas: Income-Generating Business on the Caribbean Coast
In the heart of the Las Terrenas tourist district, on the first line from the sea, an apartment in a beachfront hotel with ocean views is available. The property spans 87 m² (73.5 m² living + 14 m² terrace) on the second floor, just 80 meters from Playa Las Ballenas. For investors eyeing the Dominican Republic as a promising market, this property offers a turnkey rental business with professional management, high demand, and significant tax incentives.
Features and Condition
The apartment comprises one bedroom, one bathroom, a fully equipped kitchen with furniture, and a terrace with ocean views. The unit is fully furnished, with air conditioning and internet access. The complex features a communal swimming pool, parking, and a secured gated area. The apartment hotel offers full rental management through a pooled income system, where revenue is distributed monthly among owners. Owners also have the option to use the unit for personal stays.
Investment Potential
The Las Terrenas real estate market in 2026 shows strong performance indicators. The average price per m² in condominiums ranges from $1,500 to $2,500. At an asking price of $285,800 and an average nightly rate of $180–250 for one-bedroom apartments in hotel-style complexes, the gross yield at 65–70% occupancy reaches 7.12%.
| Parameter | Value |
|---|---|
| Average price in Las Terrenas (2026) | 2026 $1,500–2,500/m² |
| Average nightly rate (1-bedroom) | $180–250 |
| Average occupancy (apartment hotels) | 65–70% |
| Gross yield | ~7.12% |
| Net yield | 6–10% |
| Average annual price growth | 8–10% |
Key Growth Drivers
The opening of the Donoma Las Terrenas hotel (Marriott Autograph Collection) in November 2025, with $35 million in investment, has attracted international brand attention. Playa Las Ballenas has become a high-demand area. The new highway has reduced travel time to Santo Domingo to 2 hours, and El Catey Airport now receives direct flights from Europe and North America. The CONFOTUR law provides 15-year exemptions from rental income tax, property transfer tax, and annual property tax.
Who This Property Suits
- Investors — a turnkey business with 7%+ yield and professional management
- Second-home buyers — option for personal use during peak season
- Retirees and expats — European community, warm climate, developed infrastructure
- Residency applicants — no restrictions for foreign buyers
❓ Investor FAQ
What are the tax incentives?
CONFOTUR provides 15-year exemptions from 3% transfer tax, 1% annual property tax, and rental income tax.
How does rental management work?
The apartment hotel offers full management through a pooled income system — net revenue is distributed monthly in proportion to unit size.
Can foreigners buy property in the Dominican Republic?
Yes, foreigners enjoy the same property ownership rights as Dominican citizens.
Market Outlook for 2026
Las Terrenas remains one of the most attractive markets in the Caribbean basin. Annual price growth averages 8–10%, with rental yields in apartment hotels reaching 6–10%. Limited supply on the first line from the sea and growing interest from international brands make this property a solid investment with strong capital appreciation potential.