The DR Is Building at Speed. What Jamaica Can Learn.

Kingston, Jamaica, 22 June 2026. Jamaica’s nearest large Caribbean neighbour is building at a pace that commands attention. The Dominican Republic’s construction sector grew by 6.6 per cent in the first quarter of 2026, reversing a five-quarter contraction, then accelerated to 6.7 per cent growth in the second quarter. By June, the sector was expanding at nearly 15 per cent year on year, accounting for close to 30 per cent of the increase in the country’s monthly economic activity index. Credit to construction grew by more than 26 per cent in the year to April, adding over DOP 34 billion in additional lending to the sector.

The drivers of that acceleration are not difficult to identify. The Dominican Republic launched 42 new direct flights to its northern and eastern resort corridors in 2026, and a US$1.5 billion cruise port in Punta Cana opened in the second quarter. Tourism arrivals are projected at 12.5 million for the year. Where tourism leads in the Caribbean, construction follows, and the Dominican Republic’s property market is currently moving at a speed that few other islands in the region can match.

Infrastructure as the Engine

What is notable about the Dominican Republic’s current construction cycle is that it is not driven purely by foreign luxury buyers, though that segment remains active. It is increasingly shaped by infrastructure investment: a Santiago monorail, a metro extension toward Los Alcarrizos, and airport expansions that are already influencing buyer behaviour and land values in the areas they serve. The lesson is one that Caribbean property markets have understood in theory but often struggled to execute in practice: infrastructure changes land values, and land value changes what gets built.

Jamaica is itself in the middle of a significant infrastructure investment cycle. The bypass roads, water infrastructure, and highway expansions that have opened up St Thomas, the highway corridor toward Montego Bay, and planned connectivity improvements in other parishes are creating similar preconditions. Land adjacent to new or improved road infrastructure tends to attract development interest ahead of the construction activity becoming visible. The Dominican Republic’s experience suggests that when infrastructure and credit availability move in the same direction simultaneously, construction can shift from incremental to transformative.

Price Points and Competitive Positioning

One area where the comparison is less comfortable for Jamaica is price. The Dominican Republic’s property market currently offers residential property at approximately US$2,200 per square metre on average, a figure that sits modestly below Jamaica’s estimated US$2,300 to US$2,500 range. The DR offers clearer foreign ownership frameworks, lower entry prices on comparable beachfront product, and an established rental yield market in its tourist corridors. Jamaica’s relatively higher price point, without the same depth of short-term rental infrastructure or legal clarity for foreign buyers, is a competitive disadvantage that the private sector and policymakers have been slow to address. The Dominican Republic’s construction boom is a reminder that the gap, if left unattended, tends to widen.

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