The year 2023 was marked by a series of events that shaped the construction, real estate, and tourism industries and helped to guide the plans and programs of these sectors. We share some of the most relevant events that occurred in these areas during the year that is almost over.
In January, the Monetary Board of the Central Bank of the Dominican Republic (BCRD) authorized the placement of RD$21,424.4 million of the legal reserve, intended for loans for the construction and acquisition of low-cost housing.
In January, a building in La Vega also collapsed, leaving one person dead and several injured. The La Vega town hall archives contain no record indicating that the company Multimuebles, the building's owner, requested permission to remodel the structure.
In February, the Ministry of Housing, Habitat and Buildings (MIVHED) announced the opening of the call for the qualification, accreditation and registration of the first 59 Private Technical Supervisors of the Dominican Republic, protected under Law 160-21, who were sworn in on August 31.
David Collado, Minister of Tourism, announced in March that Airbnb executives were in the country and would sign an agreement to regulate the platform's service in the Dominican Republic, a measure that has not yet materialized in the national market.
In April, El Inmobiliario released the study “Economic Impact of Airbnb in the Dominican Republic,” conducted by Oxford Economics, which revealed that guests who used the platform in the country during 2021 generated an amount of US$839 million.
A building in San Cristóbal collapsed in June and according to MIVHED, it did not have a building permit, nor corresponding technical studies, nor plans to carry out the work.
The real estate sector led the list of investments in tourist construction in the Dominican Republic for the first half of 2023, with an amount of US$10,799, according to data from MITUR.
In August, Alfredo Pacheco, president of the Chamber of Deputies, introduced the bill on real estate rentals and evictions, arguing that it would contribute to boosting real estate development in the country. Also during that month, 42 real estate companies participated in the Gran Salón Inmobiliario (Great Real Estate Show) in Bogotá, Colombia, where the Dominican Republic served as host country, with a record-breaking representation of over 400 participants from national real estate firms.
In September, the Executive Branch granted pensions to 121 engineers from CODIA, through decree 465-23 signed by President Abinader, ordering the Dominican State to pay forty thousand pesos monthly to the group of retired professionals.
In October, the MIVHED announced the call for applications for the qualification, accreditation, and registration of the first Urban Managers of the Dominican Republic, who will be responsible for receiving, reviewing, and managing the processing of plans and applications for the issuance of building licenses.
Also in October, President Luis Abinader sent to the National Congress a bill that protects public or private real estate property in the country.
As of November, the number of visitors arriving in the country reached 9,105,043, nearing the 10 million target projected by the Ministry of Tourism (Mitur). So far this year, 1,913,991 tourists have arrived by sea at Dominican ports alone.
The Central Bank of the Dominican Republic reported that the construction sector has shown positive growth rates for four consecutive months, reaching 4.7% year-on-year growth as of October of this year.
This December, Analytica released the results of its study, "Impact of Tourism in the Dominican Republic," conducted for the Association of Hotels and Tourism (Asonahores). The study revealed that the arrival of visitors to the Dominican Republic was directly linked to the creation of 620,844 jobs last year, representing 86% of the 721,912 total jobs created that year. The study indicates that non-resident foreign tourists accounted for 64.2% of these jobs, while non-resident Dominicans contributed to 25.4% of the new positions.
By the end of 2023, foreign direct investment (FDI) in the Dominican Republic is estimated to reach US$4.2 billion, according to the study "Impact of Foreign Direct Investment in the Dominican Republic," based on research by the Dominican Association of Foreign Investment Companies (Asiex). The study reveals that FDI has increased by 64% since 2020 and highlights that the most dynamic sectors in 2023 are energy (26.2% of the total) and tourism (24.7%).
Taken, with modifications, from the printed Real Estate 5th edition.
