Annerys Meléndez warns of a drop in the supply of real estate, inefficiencies in the One-Stop Shop, and a lack of incentives for family housing.
SANTO DOMINGO – Annerys Meléndez, president of the Dominican Association of Housing Builders and Developers (Acoprovi ), warned that the housing sector is facing a complex situation marked by high financial costs, reduced supply, and administrative difficulties. She added that “the housing sector did not receive part of the funds released ” by the Central Bank of the Dominican Republic this year.
Meléndez explained that the economic slowdown has had a direct impact on construction, to the point that the supply of real estate “has plummeted by 12 percent” in the last year, according to building registry data. He stated that this trend is largely due to high interest rates.
The business leader argued that high costs affect both buyers and developers, noting that " the purchasing power does not allow them to pay off the loan" for many families, while the financial cost increases the final price of homes.
The statements were made during an interview on the program D' Agenda, broadcast by Telesistema, where he explained that, in parallel, labor costs have increased between 20% and 30%, which also affects final costs. "These two aspects are elements that we cannot control," he stated.
Meléndez also noted that housing represents more than 70% of the construction sector, so any slowdown in this area directly impacts overall economic performance.
He also insisted that "construction has a great impact on what is happening in the national economy," citing the popular saying that "where the bricklayer moves, the population eats," to illustrate the magnitude of the sector.
In that context, he criticized the fact that the financial relief announced mid-year was not reflected in housing construction. “ At least some of that money should have been allocated to housing and construction, because it wasn't included in this year's liberalization,” he stated, referring to the funds released by the Central Bank.
The One-Stop Shop has not worked as expected
The president of Acoprovi also pointed out that the Single Window system, designed to streamline processes and approvals, “has not had the desired effect.” She explained that many institutions are not fully integrated and that even those that are allow simultaneous procedures both within and outside the system, which reduces efficiency .
Meléndez commented that, while there has been progress compared to historical times that could reach a year, the legally mandated timeframe of 60 to 90 days has not yet been met. In some cases, especially in sectors like tourism and the environment, approvals continue to take longer.
The leader emphasized that this slowness influences investment decisions. “What you don't build today is already a setback,” she said, explaining that postponing a project has negative effects on profitability and planning.
Meléndez also warned that this situation discourages local development, pushing some investors to consider countries where administrative processes are more streamlined.
At the regional level, the president lamented that the Dominican Republic is one of the countries that the fewest incentives for family housing. She explained that countries like Colombia, Costa Rica, Chile, Peru, Mexico, and Guatemala have greater subsidies and direct support mechanisms to facilitate access to first-time homeownership.
He pointed out that, although the expansion of the “My Housing Plan Two” was recently announced, the increase in bonuses from 3,000 to 5,000 is still insufficient in the face of a housing deficit of more than 391,000 homes.
Meléndez recommended that social policies prioritize investment in housing, stating that "a family values having their own roof over their head more than receiving a food voucher."
In his remarks, he also emphasized that obtaining housing financing remains difficult. “It’s incredible that in this country it’s easier to get a car loan than a mortgage,” he stated, highlighting that a home is a more secure asset for repayment.
Finally, he reiterated that greater institutional will is needed to integrate financing mechanisms that will revitalize the sector. “There are institutions that prefer not to lend to housing, so when liberalizations are not targeted, they lend to the highest bidder,” he pointed out.
