“This increase would represent a rise of approximately 1.83 percent in the housing cost index, thus erasing the downward trend of August and September and reinforcing the upward trend of the last report.” Jorge Montalvo.
SANTO DOMINGO.– Jorge Montalvo, president of Acoprovi, the Association of Housing Builders and Developers, said he is concerned about the suppliers' intention to increase the price of a bag of cement, a basic element for construction, by 30 pesos.
The reasons would be the increase in their production costs and a decrease in trade with Haiti.
“This increase would represent an increase of about 1.83 percent in the housing cost index, which would erase the downward trend of the months of August and September, and increase the upward trend of the last report,” Montalvo pointed out.
According to information Montalvo received from suppliers, the measure would affect cement, an input that accounts for approximately 20% of the cost per square meter of construction. "Suppliers are calling their clients to tell them that prices will increase starting December 14th," he stated.
The president of the construction industry association called the action "barbaric" and pointed out that the announcement comes despite the fact that, according to the latest Central Bank report, construction has fallen from second place in 2021 to 16th in 2022, with a growth of 1.6 %.
Félix González, president of ADOCEM, the Dominican Association of Portland Cement Producers, said that, from October 2021 to October 2022, cement has been one of the construction inputs with the lowest price increase during the last year: approximately 15.9%, less than the increases produced in other countries.
The Central Bank reported that the construction sector shows a year-on-year variation of 1.6% in January-October 2022.
