It argues that a cumulative increase in the costs of essential materials, ranging between 36.3% and 39.8%, has significantly increased the cost of housing, jeopardizing access to decent housing for thousands of Dominican families.
SANTA DE LOS CABALLEROS – The Cibao Association of Housing Developers and Builders (Aprocovici) warned yesterday that housing sales in the Cibao region have decreased by more than 24%, arguing that the construction sector is facing a critical moment that demands responsible decisions and collaborative actions.
The organization representing construction companies in the northern part of the country urged stakeholders in the construction sector to join forces to boost sales and eliminate barriers that hinder access to housing in the region, especially in light of the historical price increases of essential materials that typically affect the end and beginning of each year.
"Faced with a scenario where home sales in the Cibao region have decreased by more than 24%, Aprocovici calls on all members of the construction ecosystem to work on joint strategies that alleviate inflationary pressures, promote dynamism in the real estate market, and reduce the economic impact on companies in the sector and end consumers," highlights a statement from the association.
The president of the organization, Engineer Sandy Rodríguez, expressed his concern about the complex situation facing the construction and real estate sector in the Dominican Republic, highlighting that factors such as high interest rates, limited access to mortgage financing for developers and buyers, and an accumulated increase in the costs of essential materials, ranging between 36.3% and 39.8% since the pandemic, have significantly increased the cost of housing, jeopardizing access for thousands of Dominican families to a decent home, a fundamental right enshrined in the Constitution.
Sandy Rodriguez. (EXTERNAL SOURCE).
"The volatility in the prices of essential inputs, evidenced in the bulletins of the Direct Housing Cost Index (ICDV) of the National Statistics Office (ONE), especially the sustained increase in steel and cement, is positioned as one of the biggest obstacles to guaranteeing accessibility to housing and represents a continuous challenge for the real estate sector in terms of planning and execution of projects," he explained.
He opined that the construction sector is facing a critical moment that demands responsible decisions and collaborative actions. “If we don’t prioritize cooperation and commitment, thousands of families will be left without access to decent housing. It is our responsibility to protect the balance between economic sustainability and collective well-being,” Rodríguez emphasized.
"The recent National Housing Construction Forum exemplifies this commitment. In this forum, organizations such as Aprocovici, the Dominican Association of Housing Builders and Developers (ACOPROVI), and the Association of Builders of Santo Domingo East (ACOSDE) reaffirmed their determination to professionalize the sector and promote sustainable solutions that ensure access to housing for all Dominicans.".
Social and economic impact of the construction sector
The construction sector, which represents approximately 14.2% of GDP and generates more than 421,200 direct jobs, is a fundamental pillar of the national economy. However, the constant increases in construction costs threaten its sustainability and jeopardize the economic stability of thousands of Dominican families, the document adds.
He adds that each increase in the price of materials pushes more Dominicans further away from the dream of owning their own home, especially impacting young people and middle and lower class families, who face greater difficulties in accessing affordable housing solutions.
