The IMF's projected growth in the Dominican Republic, estimated at 3.7% in 2026 and 4.4% in 2027, suggests a favorable internal economic dynamism for housing demand and investment in real estate development
SANTO DOMINGO. – The most relevant element for the real estate sector in the period analyzed by the research "Analysis of the International Context, April 2026 (From April 13 to May 12, 2026)", is the transition in the presidency of the Federal Reserve of the United States (Fed).
Economist Kevin Warsh, "former member of the Board of Governors and candidate endorsed by President Donald Trump," was confirmed by the US Senate and took office on May 15, following the end of Jerome Powell's term, with the challenge of leading monetary policy amid strong political pressures and inflationary challenges.
According to the report, prepared by the Subdirectorate of International Economic Affairs of the International Department of the Central Bank of the Dominican Republic, which analyzes the impact of the crisis caused by the conflict in the Middle East on the global economy, "Warsh will face the challenge of preserving the credibility and independence of the Fed in a context marked by constant pressure from the US president to reduce interest rates."
At the end of the period, the Fed's monetary policy rate (MPR) remained in the 3.50–3.75% range. This level, combined with inflation of 3.8% in April, maintains relatively restrictive financing conditions for investors operating in dollars, which could make mortgage loans more expensive and moderate foreign investment in real estate.
Warsh's arrival, with political pressure in favor of rate cuts, opens the possibility of a rate reduction cycle that could revitalize the dollar mortgage market and stimulate foreign real estate investment in the Dominican Republic.
At the European level, the ECB decided to maintain its deposit rate at 2.0% at the end of April, although the report indicates that the market anticipates that the entity "could opt to increase its benchmark rate in June if the inflation outlook does not improve significantly.".
Regarding the local macroeconomic context, the IMF projects a growth of 3.7% for the Dominican Republic in 2026, with a prospect of 4.4% for 2027, according to the April WEO data included in the report.
This internal economic dynamism represents a favorable factor for housing demand and investment in real estate development.
On the other hand, the international price of gold fell 3.0% in April, closing at USD 4,617.85 per troy ounce from USD 4,758.57 at the beginning of the month, as a result of the "strengthening dollar and interest rates" which "reduced its attractiveness as an investment asset".
The strengthening of the dollar can affect the exchange rate and make real estate projects denominated in that currency relatively more expensive for buyers of other currencies.
| Fed's Monetary Policy Rate (April) 3.50-3.75% Powell's successor under pressure to cut rates | Dominican Republic GDP Projection: 3.7% WEO April 2026; 4.4% for 2027 | Gold (April) -3.0% Strong dollar reduces alternative assets |
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