Interview of Anna Gladysheva, President of Arichy Inmobiliaria SRL, for the magazine “Real Estate Guide“. She is talking about the agency, market environment and prospects of investments into the east Dominican real-estate sector.
Over the last years, the east coast of the Dominican Republic experiences a burst of activity in the real-estate industry with construction of new residential complexes, hotels, trade and business centers. Information on the current business environment, expected prospects and investment opportunities has been provided by Anna Gladysheva, President of one of the most successful real-estate agencies of the region – Arichy Inmobiliaria SRL.
– For how long has Arichy Inmobiliaria SRL been providing services in the Dominican real-estate sector? What are the highlights of its history?
The agency dates back to 2008, when we started as the first official company providing services to Russian-speaking clients in the touristic zone of Punta-Cana and Bavaro. Since then, we have considerably expanded a group of our target customers to work with clients from the United States, Canada, Latin America and Europe. A number of offered services has also increased significantly. Compared to the initial focus on rent and sale of ready-to-use property, now we offer design and construction services, development of business ideas and projects. Carrying out customers` projects we always try to keep balance between our expert opinion and the investors` vision and objectives.
– Why did you decide to add construction to your list of services?
When we realized that ready-to-use residential houses and villas did not always meet particular requirements of sophisticated clients, a logical solution was to offer design and construction made to order. Thus, a future owner can choose an exquisite design (sometimes, quite extravagant) and a color range, as well as a type of construction and finishing materials whose quality is guaranteed by our company.
–In your opinion, what makes Arichy Inmobiliaria SRL different from other real-estate agencies?
Our two main distinct features include several lines of various activities and a complex approach to all our projects. If a customer buys a ready-to-use object, we not only help to choose the best of the best variant, but also provide full legal assistance and guidance on financial issues. In the case of a short-term “holiday” rent, we are ready to organize the entire vacation – from ticket booking to the airport transfer.
Speaking about construction, our employees accompany a client on the way from an idea to a project, then construction and a final property handover. At all these stages the work is carried out by the employees of our company. If a ready-to-use house, villa or an apartment complex is designed for rent, the clients often entrust administration to us. Property administration includes a search for renters, conclusion of contracts, administration of payments and technical maintenance of the property. No doubts, administration can be ordered for any real-estate object. As for construction, we can also develop joint projects with an investor. Here, we take a share from 40 to 60%, complete the construction works and then find a buyer and sell the property. This type of investment is very successful and popular, given that we guarantee with our own money the security and efficiency of the investment.
– Do you work only in Bavaro and Punta-Cana or in other regions of the country as well?
As for location, we try to adhere to the sector-specific approach and work on the territory of our province. Not only because we are headquartered here, but also recognizing that this is the most promising and speedy developing region of the Dominican Republic.
–As per your observations, what has changed on the real-estate market over the last two-three years? What has happened with buyers` and investors` preferences?
Well, we have noticed that during the last years the property has been often constructed or bought not for individual usage (as it used to be), but for being resold or rented. Actually, such behavior is explained mainly by a strong efficiency of such investments and their high security. While in the United States, for example, interest rates for deposits are not higher than 4% per year, in the Dominican Republic real-estate objects guarantee on average 24%. You can`t but agree that the benefit is obvious.
– What can you recommend to people planning to invest in Dominican real-estate property?
I would advise to do it as soon as possible! Especially, in the real-estate objects of our region. Speaking objectively, the present-day real-estate market experiences an impressive growth. There are many investors from Venezuela, the United States, Europe and Russia. And frankly speaking, there is serious competition between such investors who are eager to make investment in Dominican projects, as the east region of the country boasts the unprecedented marketing conditions and opportunities. The quicker a decision is made, the more beneficial it turns out.
– Are there any restrictions on the purchase of real-estate objects by foreigners in the Dominican Republic?
Any foreign citizen can buy, own and administrate the real-estate property with the right of inheritance in the Dominican Republic. Only a passport and one more identity document should be presented.
– What are the main steps of such a deal and what about the related expenses?
The most important part includes choosing an object, checking it for any encumbrance, elaborating and negotiating a contract, and verification and legalization by notary public. If necessary, all the procedures can be carried out within one week. Then goes public registration when the presence of a buyer is not necessary. The related expenses amount to about 4% of the property cost.
– Do foreign citizens have a right to take out a mortgage in the Dominican Republic?
Without any problem. Foreigners have a right to take out a mortgage loan in a Dominican bank with the loan secured on the bought property. The mortgage amount may add up to 80% of the assessed value of the real-estate object.
– How do you see the future of your agency?
We will continue improving and expanding our services in line with new market tendencies and the requirements of our customers.