When considering building a villa or property in the Dominican Republic, one of the first questions that comes up is the building costs per square metre. This figure is often the foundation for calculating budgets, estimating investments, and making key decisions. However, there’s a big difference between the number you hear in casual conversations and the one that actually applies when executing a project.

What does the building cost per square metre really include?

Many people, when looking to build in paradise destinations like Las Terrenas, are drawn in by average figures without understanding what’s truly included in those numbers. It’s common to hear rates that sound affordable but don’t reflect the terrain or the specific conditions of the project.

Factors such as whether the land is on a hillside, near the ocean, in a flood-prone area, or requires special groundwork directly affect the building costs per square metre. In addition, aspects like material quality, included infrastructure, and the level of finishes make a significant difference.

What is the real cost of building in Las Terrenas?

Currently, the average cost to build in Las Terrenas ranges between $1,200 and $1,400 per square metre, considering good-quality standard finishes. This estimate does not include luxury finishes, which can significantly raise the final cost. These aren’t generic estimates—they’re real figures based on current projects, including the construction of eight villas we’re currently developing.

Villas for living, vacationing, or renting: not all cost the same

The purpose of the project also plays a role. Building a “hosting” villa aimed at short-term rentals is very different from building a primary residence with full comfort. The latter often requires amenities like a pool, gym, BBQ area, water cistern, septic tank, and even solar panels—all of which increase the total budget.

A well-built villa with all these features can range between $450,000 and $600,000, depending on the location, land characteristics, and desired level of customization.

Why does the building cost per square metre vary so much?

It all comes down to the details. Clients often compare budgets without fully understanding what each one includes. At first glance, a cheaper option may seem attractive, but hidden costs and lack of quality can end up being more expensive in the long run. As the saying goes: “buy cheap, pay twice.”

Moreover, the Dominican Republic currently lacks strict regulations around thermal efficiency or insulation. Poorly insulated homes lead to higher energy bills due to excessive air conditioning use—something that could be avoided by investing in better windows or incorporating solar energy from the start.

Don’t be swayed by the number alone

Before deciding whether a building cost per square metre is cheap or expensive, make sure you know exactly what it includes. A technical analysis of the land, necessary groundwork, material quality, and environmental conditions can change everything. At All Project Group, our budgets are based on real data and a detailed study of each individual case.