He claims that in four years both products have increased by 68% and 30% , respectively.
SANTO DOMINGO. - Senator Antonio Taveras revealed that the construction sector has suffered stagnation and obstacles over the past four years due to the high cost of construction materials, high mortgage interest rates , precarious and informal employment, and the loss of formal jobs.
This was announced during his participation in the first Acosde Congress, under the name "Vision that Builds Strategic Leadership" , organized by the Association of Builders of Santo Domingo East (Acosde), held yesterday Thursday at the Crown Plaza hotel.
Taveras argued that one of the difficulties facing the sector is the high cost of materials, citing as an example the bag of cement that in 2019 had a value of RD$ 315 pesos and today is around RD$ 530 pesos .
Compared to its previous price, he indicated that this essential product has experienced a 68% increase in the last three to four years.
Regarding mortgage rates, he indicated that in 2021 the average was 9.15% , and in 2024 it rose to 12.14% , which is equivalent to a relative increase of around 30%.
“The mortgage interest rate is very high and has continued to rise. That is a major drawback,” he explained.
He also pointed out and criticized the expensive financing currently affecting the real estate sector . He reminded everyone that " housing is recognized in the Constitution as a fundamental right of our citizens."
Taveras also referred to the precarious working conditions that characterize the sector today, highlighting that high informality continues to have a significant impact.
“Of the more than 412,000 workers in the sector, 85% are informal, with a strong dependence on labor from the neighboring country of Haiti and a strong dependence on informality and undocumented workers,” he commented.
Regarding the average salary, he noted that, according to calculations based on data from the Central Bank, it is around RD$38,556.
“Very close, more or less, to the average Dominican wage. This means, gentlemen, that it is not true that Dominicans don't want to work in construction because of the low wages. It's a wage that's around the national average,” he stated.
In that sense, he considered it necessary to develop and implement a formalization promotion so that Dominicans can enter that labor environment.
Evolution of Santo Domingo East
In broad terms, Antonio Taveras discussed the performance and positioning of this sector in the Dominican Republic. He specified that, by the end of 2024, construction contributed 35% of the National Gross Domestic Product – US$16.3 billion – placing it above local commerce and manufacturing.
Regarding the real estate growth in Santo Domingo East, he stressed that it demands urgent territorial planning, accompanied by road works, basic services and security to sustain its expansion within the construction sector.
He indicated that the municipality of Santo Domingo Este (SDE) is one of the most dynamic in real estate development in the metropolitan region, with important challenges and pending work.
Among the data provided, he noted that of the total of 6,855 construction projects underway in Greater Santo Domingo, 2,452 correspond to SDE, thus representing 38.5% of the constructions.
Taveras explained that the average price per square meter in the municipality is RD$59,000; compared to the value in the National District, which amounts to RD$100,000, according to information from the Central Bank of the Dominican Republic.
On the other hand, the legislator emphasized that promoting its real estate development is a shared commitment, involving both the business sector and the State.
“It is a sector that, if we manage to formalize its jobs, if we manage to get Dominicans to work in construction, is a great engine for the social mobility of our families ,” he pointed out.
In that regard, he raised the need to lower costs, facilitate credit, and guarantee greater access to decent housing in Santo Domingo East.
“Along with this, I intend to help in a plan to promote national employment in the construction industry, to promote its formalization so that Dominicans can go to work in the construction sector and we can stop depending on foreign labor,” he stated.
