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Puerto Plata · Dominican Republic
Cabarete Real Estate
The north coast's watersports capital and a magnet for digital nomads, with strong short-term rental demand year-round.
Average price
$210,000
Listings
360
Est. gross yield
7.9%
Kitesurf & surfDigital-nomad hubAffordable entryYear-round demandWalkable beach
Properties in Cabarete
1 listingsSearch by property type in Cabarete
Quick facts · Cabarete
- Province
- Puerto Plata
- Region
- North (Amber) Coast
- Airport
- Puerto Plata (POP), ~25 min
- Price / m²
- $1,200–2,200
- Kite Beach / m²
- up to $5,500
- Gross yield
- ~7–9% (8–12%)
- Foreign ownership
- Full (Law 16-95)
- CONFOTUR
- On certified new builds
About Cabarete
Cabarete is the north coast's watersports capital, a kitesurfing and surfing hub that has grown into one of the Caribbean's most active digital-nomad and remote-worker communities. It pairs an affordable entry point with a young, international, year-round crowd and fast-improving infrastructure, all about 25 minutes from Puerto Plata's POP airport.
Limited beachfront supply against rising visitor numbers has kept prices climbing, and short-term rental demand is unusually resilient across seasons.
History of Cabarete
Cabarete was a quiet coconut-and-fishing hamlet until windsurfers discovered its steady afternoon trade winds and flat-water bay in the 1980s. It grew into one of the world's kitesurfing and windsurfing capitals, hosting international competitions, and more recently into one of the Caribbean's most active digital-nomad and remote-worker hubs.
That young, international, year-round crowd, rather than seasonal package tourism, is what gives Cabarete its unusual rental resilience and its reputation as the north coast's yield market.
Why investors buy in Cabarete
High short-term-rental yields, often 8–12% for beachfront condos and villas.
Year-round demand from kitesurfers, digital nomads and retirees keeps occupancy ~70–85%.
Prices rose ~6% in 2024, with limited beachfront supply supporting further growth.
Just ~25 minutes from Puerto Plata (POP) airport, with more direct international flights.
Market & growth
Population (DR, 2025)
~11.5M (+~1%/yr)
Beachfront yields
~8–12%
Occupancy
~70–85%
Price growth (2024)
~6%
Airport
POP (~25 min)
Figures are approximate and informational only. Verify before transacting.
Prices & rental market
| Condo: price / m² | $1,200–2,200 |
|---|---|
| Kite Beach (premium) / m² | up to $5,500 |
| Gross yield (typical) | 7–9% |
| Kite Beach yield | 8–14% |
Cabarete condos run roughly $1,200–2,200 per m², rising to about $5,500 on prime Kite Beach. Gross rental yields are the north coast's strongest (typically 7–9% and 8–12% for well-run short-term rentals, with Kite Beach reaching 8–14%) thanks to year-round demand from kitesurfers, surfers, digital nomads and retirees.
Figures are approximate and informational only. Verify before transacting.
Neighborhoods & zones
Kite Beach
up to $5,500/m²Kitesurf epicentre: the highest prices and the highest short-term-rental yields (8–14%).
Cabarete Bay (centre)
The walkable town centre and beach, with broad rental demand (7–12%).
Playa Encuentro
Surf-oriented, lower-density villas and boutique projects (7–11%).
Perla Marina
An established gated residential community west of the bay (6–10%).
Lifestyle & who it's for
Cabarete is young, active and international: kite and surf by day, beach bars and coworking by night, all along a walkable bay. It suits yield-focused investors, digital nomads and active-lifestyle buyers far more than those seeking gated calm.
Things to do & attractions
Cabarete Bay
The flat-water bay that made Cabarete a windsurf and kite capital.
Kite Beach
The kitesurfing epicentre and the area's highest-yielding condo zone.
Playa Encuentro
The north coast's premier surf break, just west of town.
El Choco / Cabarete lagoon
Caves, a lagoon and trails just inland for hiking and birdlife.
27 Charcos de Damajagua
A 27-waterfall canyoning trip a short drive away.
Recent developments
- Jan 2026
North-coast cruise & air access grows
Puerto Plata's two cruise terminals (over 1.5M passengers/yr) and POP airport, ~25 minutes from Cabarete, keep lifting visitor demand.
- Jan 2026
North-coast values up 6–10%
Local market reports put north-coast appreciation at roughly 6–10% a year, with gated communities and tourist-ready condos in highest demand.
Buying costs & process
| Item | Cost |
|---|---|
| Transfer taxOf the DGII appraised value (may exceed the sale price). | 3% |
| Legal / attorney feesTitle search, due diligence and closing. | ~1–1.5% |
| Notary & registryDocument notarization and title transfer recording. | up to ~1% |
| CONFOTUR exemptionFirst buyer of a certified project is exempt from transfer tax and the annual IPI property tax for 15 years. | −3% + 15-yr IPI |
| Annual property tax (IPI)On value above the exemption threshold; CONFOTUR units exempt for 15 years. | 1% |
≈4–9% of price all-in (commonly 5.5–7.5%). No additional tax for foreign buyers, who hold equal ownership rights under Law 16-95.
Source: DGII / DR property-law guidance (aggregated) · early 2026
Risks & considerations
Condo oversupply in pockets
Some zones carry heavy inventory; location (especially Kite Beach) and management quality drive returns.
Beach erosion
Parts of the bay (e.g. Bozo Beach) have eroded. Check the specific beach in front of a building.
Atlantic weather
The north coast sees more surf and storm exposure; verify build quality and insurance.
Title & CONFOTUR diligence
Confirm a clean Certificado de Título and CONFOTUR status with an independent attorney.
10-year outlook
Informational, not adviceCabarete's year-round demand from kitesurfers and digital nomads, plus the north coast's cruise-and-air momentum, should keep it among the region's strongest yield markets. Returns are best in prime, well-managed beach condos; pockets of oversupply are the main offset. Informational only, not investment advice.
Explore other markets in Dominican Republic
Investing in Cabarete
Can foreigners buy property in Cabarete?+
Yes. Foreign buyers have nearly the same rights as citizens under Law 16-95 — no local partner or residency required. You'll need a passport and a Dominican tax ID (RNC), which your attorney can obtain.
What are the closing costs in Cabarete?+
Typically 4–9% of the price (commonly 5.5–7.5%), led by the 3% transfer tax on the appraised value, plus legal fees (~1–1.5%) and notary and registry costs.
What is CONFOTUR?+
A tourism-incentive law that can exempt the 3% transfer tax and the annual property tax (IPI) for up to 15 years on qualifying developments. The benefit goes to the first buyer of a certified unit.
Can I buy in Cabarete without traveling to the country?+
Yes. Buying remotely is common: you grant power of attorney to an independent Dominican lawyer who runs due diligence, signs on your behalf and registers the title. We still recommend visiting before you buy.
What annual property tax applies (IPI)?+
IPI is 1% per year on value above an inflation-adjusted exemption threshold (around US$160,000). Units with CONFOTUR status are exempt from IPI for 15 years.
Can foreigners get a mortgage in the Dominican Republic?+
Yes — some banks lend to non-residents, usually at 60–70% loan-to-value and higher rates than in the U.S. or Europe. Many buyers pay cash or use developer financing on new construction.
How long does the buying process take in Cabarete?+
Usually 30–60 days: reservation, title search and due diligence, a promise-of-sale contract, the notarized deed (acto de venta), and recording at the Title Registry, which issues a new Certificado de Título in your name.
Can I earn rental income, and how is it taxed?+
Yes. Many owners rent short- or long-term through property managers. Dominican-source income is taxable; a local accountant can advise on ITBIS and income tax.
Do I need residency to own property?+
No. Ownership requires neither residency nor citizenship. Buying can actually support an investor-residency application, but it isn't a requirement to hold title.
Sources & last updated
Last updated June 2, 2026