Real estate agents are analyzing the possible causes that may have generated the significant increase in rental prices.
SANTO DOMINGO.- Alberto Bogaert, president of the AEI, Association of Real Estate Agents and Companies, believes that the increase in rental prices in Santo Domingo, which according to a study has reached nearly 90% in the last 4 years, is due to multiple factors that have affected the national market.
For him, the main reason why real estate prices have risen so significantly in the National District is closely linked to inflation, which, although he assures it is low in the country, if we compare it with other nations, has had an impact on the aforementioned increase.
“And also the increase in construction materials, which directly impacted property prices and, of course, affects rental prices,” explains the real estate advisor.
Another point highlighted by Bogaert is the short-term rental model, which he claims has invaded the national market, leaving few options for long-term housing, which also has consequences for rising prices.
“In the market we have a sufficient supply and demand for short-term rentals and furnished apartments, and this dominates the market and sets prices that not everyone can afford,” he says.
The president of the AEI board of directors for the 2022-2024 term states that the rental market for "ordinary" families is scarce in Santo Domingo. "We see that there are no options in terms of location or price, since the trend is toward short-term rentals.".
He states that it is expensive to buy or rent in central areas and that the time has come to develop alternative or emerging sectors "that still exist in the center" and to promote the construction of affordable housing for the middle class and young people who aspire to start a family and have their own roof, whether bought or rented.
Diverse reactions
Yesterday, El Inmobiliario published the high rental prices in various sectors of the Dominican capital, which is why the British company Online Mortgage Advisor recently revealed that Santo Domingo is the Latin American city where the price of housing rentals increased the most in the period 2018-2022, and the seventh in the world.
“Speculation, lack of price regulation, lack of control in sales to foreigners in international currency, inflation,” commented Vicente Javier, onel Inmobiliario 's Instagram post.
“It doesn’t fit at all with the reality we are living in. These prices are suitable for a different type of client and a different market,” was the reaction of Rvalera Real Estate.
“It’s absurd because salaries are the same! Everything has gone up: electricity, food, gasoline, housing, etc., except for salaries,” explained Fernando José Rodríguez.
“Every illegal immigrant who comes to live and invest without control from any of the State institutions, migration and peaceful invasion, Dominicans with meager wages and those who arrive illegally with dollars and Euros can invest peacefully,” Carmen Cornielle stated.
“Factors such as high demand, inflation, rising interest rates, and a bit of speculation, which is also present, are contributing to the problem. Those who acquired investment properties during and after the pandemic took advantage of low interest rates. However, if those rates were variable, they are now forced to raise prices to be able to afford the payments. In addition, the cost of living has generally increased, so landlords are raising rents in line with these widespread increases,” posted José Ignacio Vargas.
