Cap rate (capitalisation rate)
The capitalisation rate is net operating income divided by the property's price or current value, expressed as a percentage. It answers what the asset returns unlevered, which makes it useful for comparing two properties and useless for comparing two financing plans. Change the NOI assumptions and the cap rate changes with them.
Why a Punta Cana buyer should care
Cap rate is only as trustworthy as the NOI inside it, and in this market NOI is usually the invented part. A 9% cap rate built on 80% occupancy and no furniture reserve is a lower number in reality. Build the NOI yourself, then divide — and compare the result against the deposit rate you would otherwise earn.
Common mix-up
Cap rate is confused with cash-on-cash return. Cap rate ignores the mortgage; cash-on-cash measures your equity after debt service. On a developer payment plan neither is meaningful until the unit is delivered and actually renting.
Cap rate FAQs
- What is a normal cap rate in Punta Cana?
- There is no published local index. Treat any single figure as a claim and rebuild it from the unit's own costs; the yield page sets out the deductions.
- Should I use price or current value?
- Purchase price when underwriting a buy, current market value when deciding whether to keep or sell.
Go deeper
2026 orientation, not guarantees and not legal advice. No guaranteed ROI, no invented occupancy.