Sosúa vs. Cabarete: Which Market Performs Better for Short-Term Rentals?
If you are considering buying an investment property on the North Coast of the Dominican Republic, chances are Sosúa and Cabarete are both on your radar.
They are close geographically, but from a rental perspective, they do not perform exactly the same way.
One attracts guests willing to pay a slightly higher nightly rate. The other currently achieves stronger occupancy and higher estimated annual rental revenue.
So, which one makes more sense for an investor?
The answer depends on what you are buying, who you plan to rent to and what you want the property to accomplish.
Cabarete Currently Leads in Annual Rental Revenue
Based on market-level short-term rental data:
Cabarete: $24,045 per year
Sosúa: $22,574 per year
Cabarete currently holds a modest advantage in estimated annual rental revenue.
But revenue alone does not tell the whole story.
Cabarete Has Higher Occupancy
Average occupancy is estimated at:
Cabarete: 52%
Sosúa: 45%
This means Cabarete properties are, on average, occupied more frequently throughout the year.
For investors looking for consistent booking activity, occupancy can be an important part of the equation.
Sosúa Commands a Higher Nightly Rate
Average daily rate, or ADR, tells a different story:
Sosúa: $135 per night
Cabarete: $125 per night
While Cabarete achieves higher occupancy, Sosúa commands a higher average rate when the property is booked.
One market is generating more frequent bookings, while the other earns more per booked night.
So, Which Market Is Better for Investors?
There is no universal answer.
At the market level, Cabarete currently leads in occupancy and estimated annual rental revenue, while Sosúa leads in average nightly rate.
For an individual investment property, however, location is only part of the equation.
Investors should also consider:
- Property type and number of bedrooms
- Proximity to the beach and attractions
- Short-term rental rules
- HOA fees and operating expenses
- Property management
- Furnishing and condition
- Amenities
- Seasonality
- Purchase price
- Financing structure
A strong property in Sosúa can outperform an average property in Cabarete, and vice versa.
The better question is not simply which town performs better.
It is:
Which property, in which market, best supports your investment goals?
Two Markets, Two Different Opportunities
Cabarete is internationally known for its beach lifestyle, kiteboarding, surfing, restaurants and active atmosphere.
Sosúa offers its own mix of beaches, established residential communities, restaurants, services and convenient access to Puerto Plata International Airport.
Both markets attract vacationers, seasonal residents, investors and buyers looking for Caribbean lifestyle properties.
Understanding who your future guest may be is just as important as understanding the numbers.
Look Beyond the Listing Price
Rental data provides a useful benchmark, but market averages should be the beginning of your analysis, not the end.
At Dream City Real Estate, we help buyers look beyond the property listing and consider the market, rental potential, location and investment strategy behind the purchase.
Considering Sosúa or Cabarete?
Explore available North Coast properties or contact Dream City Real Estate to discuss what you are looking for.
Dream City Real Estate | We Work for YOU.
Market data and estimates provided by Airbtics. Figures represent market-level short-term rental performance and are not guarantees of performance for any individual property. Actual results may vary.
