Melchor Alcántara argues that the expected profitability of short-term rentals is part of the purchase decision for some units and asks that its effects on new projects be measured
SANTO DOMINGO. – The discussion on regulating short-term rentals should also analyze what effect it would have on the demand for apartments intended for investment and, consequently, on the financing and construction of new real estate projects, according to the National Observatory of the Construction Industry (ONIC).
The director of the agency, Melchor Antonio Alcántara Damirón, argues that short-term rentals cannot be analyzed solely as a type of accommodation that competes with hotels, because part of this supply is directly linked to residential and tourist projects whose buyers consider the possibility of generating income through the rental of their units.
The proposal is part of the open debate following the Ministry of Tourism's public consultation on a project to create the National Register of Tourist Accommodations (RENATUR).
The draft established mandatory registration of properties intended for short-stay holiday rentals and indicated that registration would be essential to market these services, both directly and through digital platforms.
MITUR withdrew the project on July 20 to open a dialogue with the actors in the short-term rental ecosystem and therefore, the provisions of that draft are currently under review and do not constitute a current regulation.
The link with real estate investment
Alcántara Damirón suggests that the possibility of exploiting a unit through short-term rentals can be part of the buyer's profitability expectation.
From that perspective, he warns that a significant reduction in that exploitation capacity could modify the investment decision, although he acknowledges that this effect must be measured and not assumed as a given.
The sequence proposed by ONIC is that a lower expected profitability could reduce interest in acquiring units intended for investment; lower demand could decrease the sales speed of certain projects and, eventually, affect their financing and execution.
The agency believes that this potential impact should be studied because the effects of a decision on real estate investment may appear with a delay compared to the time when a regulation is modified.
Construction also plays a significant role in the Dominican economy. The Central Bank reported that this sector grew 14.9% year-on-year in June 2026 and accounted for approximately 30% of the IMAE growth for that month.
The agency attributed the behavior mainly to the increase in the execution of private investment projects and the greater dynamism of public investment.
Credit for construction also increased 22.6% year-on-year at the end of June, equivalent to more than RD$34 billion in additional credit compared to the same period in 2025, according to the Central Bank.
A broader economic chain
For ONIC, the potential impact on construction is not limited to the real estate developer. Alcántara Damirón describes a chain that begins with land acquisition and continues with project development and pre-sales, financing, construction, hiring of workers, purchase of materials and furnishings, and tax payments.
“Each project mobilizes a broad production chain,” the organization argues, which believes that any modification of the incentives to invest in real estate developments should be evaluated for its effects on the economy as a whole.
Specifically, it proposes that the State determine what proportion of real estate sales are associated with buyers acquiring units with the expectation of short-term rentals. Without this data, it argues, it is difficult to estimate how much more restrictive regulations could affect the demand for new units.
The agency's position does not question the need to regulate the activity. In fact, it proposes registration, tax compliance and safety standards, consumer protection, and market transparency as reasonable elements.
The debate also comes as representatives of short-term rentals have questioned several aspects of the project withdrawn by the Ministry of Tourism (MITUR). ADORECO pointed out, among other things, that the draft imposed administrative burdens that could affect small hosts and professional operators differently, and raised concerns about documentation requirements and legal certainty.
For ONIC, the discussion now taking place at the dialogue table must incorporate this economic dimension: not only how much the hotel industry can gain with a potentially more restrictive regulation, but also how much the country could gain or lose in real estate investment, construction, employment and the generation of new tourism supply.
The goal, Alcántara Damirón argues, should be to find a regulation that organizes the activity without unnecessarily reducing the incentives that allow tourism to generate new real estate investments and construction projects.
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