Higher costs, higher prices, and greater profits marked the behavior of the construction sector during the period
SANTO DOMINGO. – The profitability of the construction sector increased during the 2023-2024 period, in a context where construction became more expensive and that increase began to be reflected in housing prices, according to the results of the National Survey of Economic Activity, ENAE, prepared by the National Statistics Office, ONE.
The report corresponding to the survey applied in the reference period indicates that the profits grew so strongly that the profit for the year went from RD$28,762.38 million in 2023 to RD$36,330.58 million in 2024, while profitability rose from 14.5% to 15.2%.
This result occurred despite production costs already being higher at that time. Costs and expenses increased by more than RD$31 billion during the period, driven primarily by construction materials, which alone accounted for 39.0% of total spending in 2024.
The report shows that this increase in profits was reflected not only across the sector as a whole, but also at the individual company level. In this regard, average profit rose from RD$43.45 million to RD$45.24 million, indicating that the improved performance was not limited to overall volume, but extended to all companies.
This suggests that, despite rising costs, construction companies managed to maintain positive margins and improve their ability to generate profits, supported by higher revenues and prices that allowed them to absorb operational pressures.
Overall, the data reflect a sector that, during the 2023-2024 period, not only expanded its activity, but also strengthened its profitability at the business level.
How can this be explained? Part of the answer lies in the prices
During the period covered by the ENAE 2025, the cost of housing within the consumer basket, measured by the price index, showed sustained increases, indicating that living, renting or acquiring a property became more expensive.
It was not a one-off jump, but a trend that had been developing since the previous period and that finally consolidated between 2023 and 2024.
This shift was also reflected in the real estate market. Data from the Building Supply Registry, ROE 2025-2, published by El Inmobiliario, shows that fewer homes were sold, but at higher prices, with an average price per square meter exceeding RD$109,000. In other words, although there were fewer transactions, each unit generated more revenue.
In addition, construction costs continued to rise. The Direct Housing Construction Cost Index reported a 3.72% increase in 2025, reflecting ongoing pressure on key inputs such as cement, steel, and finishes.
And the result was a chain reaction: first costs went up, then they were passed on to prices, and finally that was reflected in higher revenues per project.
In practice, the sector began to operate with a different logic: lower sales volume, but higher value per unit. This combination allowed it to maintain and even improve profitability, even in a more expensive environment, a trend that continues in 2026, as reported in El Inmobiliario.
However, this same process had a side effect: as prices rose, access to housing became more difficult for a significant part of the population, pushing the market towards higher-income segments.
In summary, between 2023 and 2024 construction not only grew, but also became more expensive and more selective, and in that adjustment it found a way to increase its profits.
The National Survey of Economic Activity, ENAE, was prepared by the National Statistics Office, ONE, and collected structural information from formal companies with 16 or more employees, corresponding to the fiscal period 2023-2024.
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