Covid-19 has single-handedly decimated several traditional business sectors and markets throughout the world. Brick and mortar retail, specifically, is one of the industries that has been severely impacted with several retail chains closing down thousands of locations.  This sector was already struggling due to the emergence of online retailers like Amazon along with consumers becoming more and more comfortable with the idea of shopping from the comforts of their own home. The pandemic has forced these retailers to fast-track re-organization and changes in the way they have traditionally done business. 

However, this is nothing new. 

Businesses, no matter the industry or sector, must continue to reinvent themselves to stay relevant. They must have a pulse on new market trends in order to develop new solutions, services, and products to meet customer needs. 

For example, the real estate market, a sector that Compass Financial Advisors is very much involved in, is changing due to Covid-19 where buyers are concerned about security, privacy, and space.

Gianluca Barth, CEO of Gabb Invest, an expert lawyer in investment consulting, indicated that in European countries like France people looking to purchase more real estate outside of the major city centers in favor of property that allows for more space, green areas, and privacy.

Like their European counterparts, Latin American and North American homebuyers will share similar real estate preferences and buying patterns.

In addition to homebuyers, these preferences will extend to renters and, even, vacationers or business travelers who’ll need accommodations while traveling abroad.

Right now, there is not a lot of supply to meet the current needs of this growing segment of buyers, renters, and travelers, which presents commercial real estate developers and investors with a huge market opportunity that they can capitalize on.

The types of real estate products that could be developed for this demographic are expansive. 

For example, a residential tower or building situated in an exclusive beachfront community in a tourism hotspot that integrates several onsite amenities such as a supermarket, clinic, pharmacy, gym, restaurants, and a bank (ATM) where residents and/or renters (short- or long-term) do not have to leave allowing them to maintain social distance and not expose themselves outside of the complex.

The Dominican Republic is unique in that you’ve already have established beachfront communities like Casa de Campo that cater to this segment. The average starting price of a single-family residence—an apartment or small villa—in these types of communities is around US$300,000 to US$350,000. The minimum investment for commercial-level property in this type of community, which will typically yield a higher ROI, is anywhere between US$1 to US$2 million. 

To learn more about real estate opportunities in the Dominican Republic, schedule a consultation with one of our advisors here.