Single-family homes with one level saw the largest increase, at 4.36%, demonstrating a greater impact of costs, especially labor costs, in this market segment.
SANTO DOMINGO.- The direct cost of housing construction in the Dominican Republic maintained an upward trajectory during 2025, with a cumulative increase of 3.72%, according to the Annual Report of the Direct Housing Construction Cost Index (ICDV), published by the National Statistics Office (ONE).
According to the annual compilation of ICDV results recorded during the year 2025, the indicator closed the year at 236.16 points, in a context characterized by pressures on the inputs of the sector, especially in the labor and certain materials linked to technical installations.
The report states that labor was the main factor of increase, with a cumulative variation of 7.14%, the highest among the cost groups.
According to the ONE analysis, this behavior was associated with salary adjustments, greater demand for skilled workers, and more complex technical requirements in construction projects.
Other components showed more moderate increases: tools 4.07%, machinery 1.52%, and subcontracts 0.82%, while materials registered a contained variation of 0.41% for the year, the report indicates.
Products with the largest price increases
At the subgroup level, the largest increases were concentrated in:
Masonry labor: 7.14%
PVC pipes and fittings: 6.11%
Electric generators: 5.59%
Blacksmithing subcontracting: 5.22%
These results reflect a greater dispersion of the increases among different components compared to 2024.
Higher incidence in single-family homes
The sector's performance, as reported in the 2025 ICDV (Housing Cost Index), shows a generalized increase in costs across all housing types, with a greater impact on single-family homes.
By type, single-story single-family homes showed the largest year-on-year growth, with a 4.36% increase and an index of 242.22 points at the end of 2025.
Two-story single-family homes increased by 3.57%, while multi-family homes showed lower levels of the index, with values of 232.25 for four-story buildings and 231.99 for those with eight or more stories.
Moderate growth and controlled inflation
The Central Bank reported that the Dominican economy registered cumulative year-on-year growth of 2.2% between January and September 2025, according to data cited in the ICDV report, while year-end growth reached 2.1%.
Within this context of economic moderation, the construction sector registered a cumulative contraction of -0.5% in 2025, according to official figures.
Meanwhile, year-on-year inflation stood at 4.95% at year-end, while core inflation reached 4.85%, within the target range established by the monetary authority.
The report notes that this environment helped preserve price stability, although specific pressures persisted in industrial inputs and operating costs in the construction sector.
Construction activity and market dynamics
In the Metropolitan Region, 7,619 construction projects were registered during 2025, with a total area of 6.3 million square meters, according to the Building Supply Registry (ROE).
Additionally, 40,744 housing units were counted, with a predominance of apartment projects, which concentrated the largest proportion of approved constructions and appraised value.
Licenses to the private sector
Regarding licenses, the private sector registered 1,076 authorizations that resulted in 3,149 constructions, with an estimated value of RD$51,973 million, reflecting a concentration in larger scale projects, despite a reduction in the number of permits.
The behavior of the construction sector in 2025 is part of a moderating trend following the increases recorded in previous years.
The report highlights that the largest increase in the index occurred in 2021, at 15.01%, while a contraction of -1.80% was recorded in 2023. In this context, the projected growth of 3.72% in 2025 reflects a phase of moderate and sustained expansion.
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