By Escarlin Pozo
El Inmobiliario
SANTO DOMINGO – The construction sector, historically one of the most important economic pillars of the Dominican Republic, is facing a slowdown. According to the most recent report from the Central Bank, this sector registered a year-on-year decrease of 7.7% between January and February 2025, reflecting a halt in its growth.
El Inmobiliario sought the opinions of several construction industry leaders to understand their perspectives on the current situation facing one of the country's main economic pillars and its possible causes. In this regard, Jochimin Pérez, manager of JPrez Construction, a company with over 20 years in the local market and a broad portfolio of completed residential projects, believes that one of the main reasons for this decline has been the low level of public investment in infrastructure projects.
“Investment in public works and infrastructure has been reduced by the public sector, and this impacts the figures that show a reduction in the construction sector,” he said.
From the private sector side, the engineer indicated that the slowdown in bureaucratic processes and the constant modifications to regulations that alter the legal framework have affected the dynamism of new projects.
In that sense, Pérez pointed out that this scenario, where a development objective for the construction sector is not promoted, only "restricts its growth".
Regarding access to credit, he warned that the increase in interest rates has significantly reduced the purchasing power of the lower-middle class, one of the most important segments of real estate projects.
To elaborate, he argued that this scenario "creates the basis for a reduction in access to credit for a sector that receives the majority of current offers and that was already experiencing a slow recovery process due to the impact of inflationary processes in previous years.".
Regarding the reputational impact, he noted that the alleged real estate scams, disseminated in the media, particularly affected Dominican buyers abroad, who had been driving demand.
Jochimin Pérez. (EXTERNAL SOURCE).
“The real estate market contracted due to the local media coverage and the diaspora coverage of real estate scams, which seemed more like a coordinated plan to discredit the real estate sector. This reduced the intention of Dominicans in the diaspora, who had been playing a leading role in real estate purchases, to acquire property,” he explained.
Despite these challenges, he emphasized that the country maintains its international appeal, driven by its leadership in Caribbean tourism and its position as a second-home destination.
“Currently, we have a market that continues to be attractive to foreign visitors thanks to the promotion of the country as a leading tourist destination in the Caribbean and a safe option as a second home destination,” he emphasized.
Reactivation
To revive the sector, the businessman considered it essential to simplify bureaucratic processes and avoid excessive regulations that end up hindering growth.
“We must be prepared to simplify bureaucratic processes and strive to grow the construction sector quickly, rather than continuing to limit it with excessive regulations,” he recommended.
Finally, he warned about the international economic environment which, if it remains uncertain, could further affect local performance.
“We are in a global process of tariff wars between economic powers in a market that is not defined, and economists predict that, if these uncertainties continue, they could disrupt world economic peace,” he concluded.
