The construction sector was one of those revolutionized by COVID-19, for multiple reasons. On the one hand, the lockdown made people value and revalue homeownership; the need for larger spaces, the availability of resources, given that expenses were reduced during confinement, in short, there are many interpretations and arguments.
The truth is that the significant figures for buying and selling homes in the Dominican Republic in 2021 have been a cause for celebration for builders and real estate agencies. Many of the latter described the past year as one of "record sales," gave recognition to their outstanding salespeople, and celebrated their Christmas holidays in style.
These expressions of satisfaction were supported by official bodies, such as the Central Bank, which in its November report identified the construction sector as the second most responsible for boosting the Dominican economy in 2021.
But not everything shifted in favor of the real estate industry, which was hit by rising construction material costs and delays in the arrival of freight shipments of raw materials and imported goods. Many materials used in the construction process come from China, where the virus originated, so the freight distribution chain was severely affected, impacting global trade.
The situation is not yet over, with waves of COVID-19 variants looming periodically, causing projects to grind to a halt once again. Back in the country, construction companies have stated that many of their projects will not be completed on time due to the current situation; they report shortages of materials and price increases for existing ones.
Amid this situation, the country has begun a surge in the prices of basic goods, gasoline continues its relentless rise, and construction materials like cement, which hardware store owners complain continues to increase in price, raising fears of a chain reaction that will ultimately affect various sectors, and el inmobiliariowould be no exception.
The International Monetary Fund (IMF) has issued a warning. “The global economy will grow less than previously forecast this year, primarily due to the slowdown in the United States and China, signaling a horizon clouded by economic downturns, high inflation, and rising interest rates,” it stated in its World Economic (WEO) report, which anticipates an even weaker recovery in Latin America.
This pattern of staggered price increases recorded in recent months has raised alarms about inflation and the grim outlook that could be coming, so we must remain attentive to how the situation develops.
The current moment demands that we be prudent, as the consequences of the pandemic will continue to arrive and, to a greater or lesser extent, no sector of the world economy will escape the catastrophe of COVID-19, which continues its course, resisting leaving us in peace.
