He states that foreign real estate investment could be affected.
By Gissel Taveras
El Inmobiliario
SANTO DOMINGO. - The president of the Santo Domingo East Builders Association (ASCODE), Riubell Montes de Oca, believes that increasing the Property Tax (IPI) would significantly impact the real estate market at this time. Although it's not publicly known, the market has already experienced a considerable decline this year compared to 2023.
"It's important to note that when we interview people who intend to buy a property but don't complete the purchase, the main reason right now is the high interest rates."
He asserts that adding to this the fact that investors would have to pay more property tax (IPI) on top of the current rates would further restrict the real estate market.
“We believe that increasing the property tax (IPI) would directly affect the construction and real estate sectors, which together represent one of the main sectors sustaining the national economy,” the businessman explained.
He explains that if we analyze the tourism sector, which is so important to the economy, when we talk about tourism we are also indirectly talking about construction, since accommodations are built on residential infrastructure.
“However, we understand that increasing the IPI tax at this time would directly harm the construction and real estate sector,” Montes de Oca stated.
ASCODE is the association created this year that brings together developers and builders from Santo Domingo Este, an area where real estate development has grown significantly in recent years.
