A house from 1970 in Arroyo Hondo, which was valued at 11.5 million in December 2020, is in the process of closing for an amount of 14.2 million.
SANTO DOMINGO – Home sales continue to soar, and with them, prices. Both globally and locally, figures published by regulatory bodies show that the coronavirus accelerated the sector's growth.
Theories about this boom are being analyzed, although there are still no indicators that precisely define the phenomenon. What is clear is that the coronavirus has generated an unexpected phenomenon for the real estate industry, overturning fears and predictions, and causing price increases in both new and resale properties.
The testimonials of the agents who act as intermediaries in the transactions confirm this. Residential homes have been in high demand in recent months, adding to the wave of growth, as stated by Susana Flores de Geraldino, of Geraldino Realty SRL, who has been in the business for around 20 years.
“The pandemic has greatly boosted the sector. Right now in Arroyo Hondo Viejo, if you look for one, you can't find one. With sums of 15 million and more, they might appear, but they are scarce; they have all been sold,” explains the specialist in sales and rental of residential homes.
Regarding the price increases, he cites the case of a 1970s house in Arroyo Hondo that was valued at 11.5 million in December 2020, and today the deal is closing at 14.2 million with the same buyers.
Given the increased demand for this type of property, well-known developers are managing the construction of projects to supply this market, in areas where it is possible to build them, since land is scarce in the central area, and there are also areas that do not allow this type of construction.
“This year we moved to Cuesta Hermosa and that has helped us to strengthen the housing sector, that is our focus in terms of rentals, sales of used properties and projects under construction,” explains Flores de Geraldino with experience.
The proliferation of vertical housing projects in recent years has revolutionized the market, displacing the residential houses that once dominated cities.
Arroyo Hondo Viejo is among the areas that have preserved their original residential character. On the outskirts of the city, land is more readily available, which is why residential developments like Cuesta Hermosa, located on República de Colombia street, are proliferating. The same is true in the districts of Independencia, Cacicazgos, La Castellana, Arroyo Manzano, and others. In the case of Mirador Sur, the residents' association has come together to preserve their homes intact.
Another segment of this population prefers apartments with terraces or balconies, or those who opt for apartments with a roof. Some fear the high maintenance costs associated with single-family homes.
