Vacation rental profitability in Punta Cana: real numbers

Real vacation rental numbers in Punta Cana

One of the most frequent questions from investors is: what's the real return? Let's look at the numbers.

Average nightly rate

• Studio/1 bed: USD 80-120/night
• 2 bedrooms: USD 120-180/night
• 3 bedrooms (luxury): USD 200-350/night

Average occupancy

• High season (Dec-April): 80-95%
• Mid season (May-July, Nov): 60-75%
• Low season (August-Oct): 45-60%
• Annual average: 65-75%

Practical example: 2-bed apartment in Bavaro

• Value: USD 180,000
• Average rate: USD 140/night
• Occupancy: 70% (256 nights)
• Gross income: USD 35,840/year
• Operating expenses (25%): -USD 8,960
• Maintenance and HOA: -USD 3,600
• Net income: USD 23,280/year
• Net yield: 12.9%

Factors affecting profitability

1. Location: Beachfront vs inland
2. Furnishing quality: Investment in decor pays for itself
3. Professional management: Property managers charge 15-25% but optimize occupancy
4. Reviews: Airbnb reputation is everything

Comparison with other investments

| Investment | Annual return | |-----------|-------------------| | Punta Cana rental | 8-13% | | S&P 500 (average) | 7-10% | | Treasury bonds | 4-5% | | Madrid rental | 3-5% | | Miami rental | 4-6% |

Conclusion

The numbers speak for themselves. Punta Cana offers one of the best risk-return ratios in global real estate.