Since 2020, discussing the Direct Housing Construction Cost Index (ICDV) is no longer a technical topic reserved for engineers or builders. Today, it's a contractual reality that every responsible real estate advisor must understand.
The ICDV, published by the National Statistics Office (ONE), measures the monthly variations in direct housing construction costs in the Dominican Republic. It includes materials, labor, equipment, and subcontracts; but does not include indirect costs such as land, financing, permits, or marketing.
And why is this so important?
Because most projects are sold off-plan, and one, two, three, or more years can pass between signing and completion. During that time, construction costs are constantly changing. The ICDV allows for measuring these variations with a technical and objective benchmark, preventing improvisation.
Therefore, the modern real estate agent cannot simply limit themselves to showing a property or explaining a payment method. They must also guide the client on how this clause works and why it exists.
An educated customer understands the process better. An informed customer generates fewer future conflicts.
And here's a crucial point: responsibility shouldn't fall solely on the developer or individual consultant. It's also the duty of industry associations, such as AEI and ACOPROVI, to educate the market and help bring transparency to this issue for the public.
The clearer the ICDV is explained from the beginning —how it is calculated, when it applies and under what contractual parameters— the more confidence our real estate sector will generate.
Transparency prevents misunderstandings. Education prevents conflicts. And professionalization strengthens market credibility.
The ICDV should not be seen as a threat to the buyer. It should be seen as a technical tool that, when properly explained, protects the sustainability of projects and fosters healthier relationships between client, advisor, and developer.
Today more than ever, selling real estate is not just about closing deals. It's also about educating.
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