Permitting: the battle that halted construction projects and ignited debate in 2025

The State's ability to coordinate technical control, administrative efficiency, and public access to information will be crucial in determining whether the construction sector can regain momentum without repeating the mistakes that marked 2025.

SANTO DOMINGO. – If 2025 will be remembered for serious incidents linked to construction deficiencies that shook the Dominican Republic, it will also be remembered for the controversy surrounding permits, less visible, but equally decisive for the construction sector.

Throughout the year, the debate about the timing, coordination, and efficiency of the authorization processes did not leave construction companies, promoters, developers, or investors indifferent, who denounced prolonged delays, stalled projects, and economic losses.

The claim

On Wednesday, November 20, 2025, the former president of the Dominican Association of Housing Builders and Promoters (Acoprovi), Fermín Acosta, warned that around US$6 billion in real estate projects remained paralyzed in the Punta Cana-Bávaro axis due to delays in the issuance of permits, particularly in the Ministries of Tourism and Environment.

Acosta argued that between 75% and 80% of permit applications were stalled and that, without the release of these authorizations, numerous projects could not advance to their execution stages, affecting both the planning and financing of the projects.

This observation was not isolated, as since the middle of the year, actors in the private sector had been warning that the slowness in the approval of permits increased the cost of projects, altered schedules and discouraged new investments.

An analysis published by El Inmobiliario warned that delays in this area could even "damage the prestige" of key hubs such as the Eastern region, by hindering the development of strategic projects in tourist and real estate areas.

Obstacles and tensions

Although various state agencies made progress in the partial digitization of procedures, the experience of entrepreneurs and developers during 2025 continued to be marked by files without timely updates, fragmented processes and a lack of clear traceability between institutions.

A sector report published in September 2024, which remained fully in force throughout 2025, described a system in which response times were unpredictable and responsibilities were diluted among agencies.

Along the same lines, industry stakeholders pointed out that the environmental permits granted by the Ministry of Environment and Natural Resources added an additional layer of complexity, in some cases duplicating requirements and deadlines without effective inter-institutional coordination, further delaying the final approval of projects.

Sectoral debate and public discussion

Permitting became a cross-cutting theme in forums, seminars and meetings of the sector during 2025, as a key factor for the competitiveness of construction and real estate development.

The El Inmobiliario Forum : Safe Square Meters: Real Estate Investment Squared , held on September 30, 2025, brought together specialists, investors and relevant actors in the sector to discuss, among other topics, the need to streamline procedures, strengthen institutional transparency and provide developers with clearer tools to navigate state permit processes.

In analyses published towards the end of the year, this media outlet insisted that permitting can become a real "knot" for productive activity if it is not accompanied by greater institutional agility, inter-ministerial coordination and a digitization that brings transparency and whose benefits are effectively reflected in the end user.

The controversy surrounding permits also impacted the sector's economic climate. A recent analysis linked part of the slowdown observed in 2025 to administrative hurdles that delay the start of projects, alongside financial factors such as high interest rates and private capital caution.

For many developers, slow and unpredictable permitting creates an environment of uncertainty that not only causes operational delays, but also cost revaluations, investment rescheduling and margin reduction, with effects that are transferred to the production chain and employment.

Legal certainty and trust

Beyond operational complaints about delays and stalled files, the debate over permitting in 2025 also exposed a deeper concern: its direct impact on buyer and investor confidence, a key factor for the sustainability of the real estate sector.

During the El InmobiliarioForum, several industry players agreed that legal certainty has become a decisive criterion for demand.

Real estate entrepreneur Luz Sarmiento, one of the panelists at the meeting, emphasized that the profile of the new client is increasingly demanding in terms of documentation and regulations.

“The new client seeks legal certainty and expects total transparency from us; we professionals must guarantee that the documentation is in order, that the titles are clear and that the permits are approved.”.

International perspectives reinforced this assessment. Business leaders Joan Trilla and Javier Donoso agreed that the Dominican Republic remains an attractive destination, but faces ongoing institutional challenges.

“Investing in the Dominican Republic is worthwhile, but it must be done with sound judgment, planning, and knowledge of the legal environment.”.

At the Forum, international lawyer and consultant Reyna Echenique addressed permitting from a less reactive and more structural perspective. In her presentation, “Legal Certainty: The Master Key to Investments ,” she argued that investor confidence is eroded not only by the existence of controls, but also by the lack of clear, accessible, and verifiable information regarding permits, certifications, and the actual progress of projects.

He warned that opacity or outdated data increases perceived risk and discourages capital, especially foreign capital, and proposed as a solution the strengthening of digital platforms that allow public and real-time monitoring of procedures and authorizations.

A system under structural questioning

These perceptions did not arise in isolation. In an analysis published on March 9, 2025, El Inmobiliario described the Dominican permitting system as an “obsolete system that hinders development and investment,” noting that approval processes can take between 12 and 24 months.

This problem is compounded by the lack of public and digital access to permits, certifications, and licenses. The inability to quickly verify a project's status increases risk, raises transaction costs, and erodes trust in the system.

Permits, control and the challenge towards 2026

The 2025 debate made it clear that the dilemma is not choosing between permits or security, but building a balance that allows projects to be executed with greater administrative efficiency without sacrificing technical standards or legality.

Looking ahead to 2026, permitting will continue to be one of the main areas of contention in the construction sector, and its evolution will be key to determining whether the country can sustain investment, strengthen oversight, and restore confidence.

Permitting in 2025: an X-ray