My Favorite French Beach Town (HINT: It’s Not in France) -

8th of March 2023 is the last time I’ve had that moment. That feeling of WOW—it’s every bit as drop dead gorgeous as I remember. My drive from the capital Santo Domingo was on a smooth highway…through the pastureland and cattle country that reminds me of Nicaragua…into the highlands and gentle mists that remind me of Costa Rica or Panama. And finally the descent. The last stretch of road is even smoother and nicer. I first came here 16 years ago right after it opened. Before that it was difficult to access.

Round the corner…and then…

… the wildly beautiful Las Terrenas opens up in front…I snapped this photo from the roadside.

I get a sense of what the protagonist in The Beach felt when his map brough him to a perfect meeting of white sand and turquoise water. But I know when I descend there will be home comforts and world class cuisine. This is a truly special place. Isolated but connected. Expansive but boutique…casual and classy.

I think of it as my favourite French beach town. The French came first by donkey over the hill. Then the Italians…although ask an Italian and they’ll claim they were here first. The brought boules, Vespas, cappuccinos and sunset Champagne.

This is maybe even my favourite beach town. It’s right up there on my top tier list. The list of beach towns that on any given day I could make the case that it’s the one. El numero uno.

And this particular beach town has some remarkable real estate values. I’m talking about…

A two-bedroom villa, just five minutes from my favorite beach for $151,000…

…a large three-bedroom penthouse with a terrace jacuzzi, and a shared pool, for $260,000.

Rental income is strong. You could see a solid 9% gross rental yield. More about those in a moment…

First more about what makes this place is so special and you might find that you want to keep your dream home here all to yourself.

I’ve visited beach towns all across the Caribbean. But one little town on the Dominican Republic’s Samana Peninsula keeps pulling me back.

It’s one of my favorite Caribbean destinations…and it’s not even on the Caribbean.

It’s called Las Terrenas, and it’s not what you’d expect from a Caribbean island town.

Yes, it has stunning beaches and palm trees swaying in the breeze. But it also has French bakeries, Italian gelaterias, stylish boutique hotels, and cafes painted in bright colors where the espresso is strong and the croissants are flaky.

Las Terrenas is about two hours from the Dominican Republic’s capital city, Santo Domingo. You can read more about it in our new special report. Click here to access The Real Estate Buyer’s Guide to the Dominican Republic

Las Terrenas is a 25-minute drive to the international airport at El Catey…and from there, it’s just over two hours to Miami by plane…

Sitting on the Atlantic Ocean side of the country, this low-key town has been quietly evolving for decades. French and Italian expats first came here in the 1980s, drawn by the raw beauty and the miles of untouched beach. They fell in love with the place and opened boutique restaurants, art galleries, bakeries, and charming hotels. Without disturbing the natural beauty, they added their stamp. The locals embraced it. And Las Terrenas became something special.

Unlike other destinations on the island that raced to stack up all-inclusives and tower blocks, Las Terrenas stayed low-rise, local, and full of soul. (Las Terrenas has strict building height regulations, often summarized as “no building taller than a palm tree!”)

This isn’t an area full of gated communities or manicured lawns… life here is lived outdoors…authentically…you’ll find real community and raw beauty, small shops and restaurants, and a distinct lack of big chains…

The beachfront in Las Terrenas is the perfect place to watch the water in the shade of swaying palm trees.

This town used to be hard to get to. In fact, it was nearly impossible to reach. You’d have to ride mules into town. Forget about Vespas and cappuccinos! The electricity supply was only connected in the 1990s. Before that, people were cooking on gas camping stoves.

As recently as the early 2000s, the final 12-mile drive here meant navigating a potholed mountain road with no lights or safety barriers. It was a trek.

But in 2009, a new highway opened connecting the Samana Peninsula with Santo Domingo. Then, in 2011, a new coastal boulevard finally made Las Terrenas easily accessible by smooth paved roads.

Today, visitors can drive here from the capital in under two hours. And direct international flights from Toronto, Montreal, New York, London, and Paris bring travelers straight to El Catey airport, 25 minutes’ drive to the west.

The approach to the town is still breathtaking. It forces you to stop and pull in to admire the stunningly beautiful curve of coast from elevation.

In Las Terrenas, you’ll find hills, rainforest, beach and stunning Atlantic waters. The place has a wild beauty. It feels like a remote island community of like-minded adventurers.

There are two real estate plays in Las Terrenas: buy a luxury villa with sea views, or else find a dated condo in one of the older beachfront projects to fix it up.

For example, on my last trip I found this two-bedroom villa, just five minutes from Playa Bonita beach that listed for $151,000. The community is in a tropical surrounding, with a swimming pool, jacuzzis, a massage room, and a bar.

A two-bedroom villa just a five-minute walk from the beach costs just $151,000.

A play here is to buy something overlooked and unloved at the edge of town or close to the beach. Buy at a good price, polish it up, then maximize your earnings in this strong rental market with a well-serviced rental.

I found a large three-bedroom penthouse with a terrace jacuzzi, and a shared pool, listing for $260,000.

The place was in good condition but needed furnishing. Figure all in at $300,000.

Using the average high-season rate of $290 a night given by AirDNA at the time and occupancy of 56.2%, that would be an income of about $26,000 from December to mid-April.

That would be a gross yield of 9%, even if you were using it yourself for the rest of the year.

Las Terrenas is a little paradise in the Dominican Republic. In the evenings, the air is filled with warm laughter and the clink of boules.

Las Terrenas is a special place…one of my most favourite beach towns of anywhere. It’s not however where I chose to make my first DR real estate purchase in close on two decades scouting there. (Although a big perk for me of owning in the DR is I look forward to visits to Las Terrenas.)

Where I bought (alongside RETA members) my condo will be steps from perfect white sands and turquoise waters. The master planned community is twice the size of Manhattan. I think of it more as a microstate than a community. Bright verdant fairways of the golf course contrast with the blue sky. There are great dining options. A marina…and all only 15 minutes from the most connected airport of the Caribbean bar Cancun. This play has what I call the RETA kicker…I expect $275,000 in capital appreciation five years after I take possession. Plus a strong double-digit rental income. I bought in a special members-only deal in Cap Cana.

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