SANTIAGO.- From 2016 to 2020, private investment in infrastructure in this municipality reached RD$49,002 million, equivalent to 10.5% of national private investment, according to the study "Economic Sizing of the Construction Sector in the province of Santiago", prepared by APROCOVICI, Association of Housing Promoters and Builders of Cibao.
The research establishes that 1 out of every 10 pesos invested by the private sector in new constructions during that period were invested in Santiago, a figure only surpassed by the province of La Altagracia, whose amount totals RD$65,507 million.
“During 2016-2020, private investment in infrastructure in Santiago reached RD$49,002 million, 25% below the private investment made in the province of La Altagracia (RD$65,507 million) and 14% above the total amount for the rest of the provinces (RD$42,314 million),” revealed the study by the association that groups the builders of the heart city.
Regarding public investment, during the same period, it reached RD$14,006 million, equivalent to 8% of national public investment. “In other words, Santiago received 1 out of every 12 pesos invested by the public sector in infrastructure projects.”.
In this particular case, the investigation compares the amounts with the province of La Altagracia, where it maintains that the figure was around three times higher, and with Greater Santo Domingo, a demarcation that places it at 23% lower than what was invested by the Cibao region.
Interest rate
The study indicates that prior to COVID-19, the active interest rate in the construction sector in Santiago went from being up to 300 basis points (bps) below that of the rest of the country, to exceeding it by around 20 bps, while the delinquency rate of the construction sector portfolio remains around 230 bps above that of the rest of the country.
“As of December 2021, the active interest rate in the construction sector in Santiago was 20 basis points higher than that recorded in Greater Santo Domingo, while delinquency reached the highest level of any region in the country,” explains the APROCOVICI research.
It maintains that as of December 2021, both the active interest rate in the real estate and rental sector in Santiago and the delinquency rate registered levels equivalent to those of Greater Santo Domingo, reaching 9.4% and 1% respectively.
Study objectives
To identify and characterize the most attractive areas for real estate investment in the city of Santiago, considering the characteristics of territorial dynamics, land use and occupation patterns, coverage of basic services and infrastructure, the territory's capacity to accommodate more buildings, population, and traffic, and its levels of vulnerability; all of this analyzed for the current situation and its projection to 2030; to analyze the supply and demand of the most favorable areas for real estate investment; and to identify urban development trends in the city of Santiago
