The expert explains the main causes of the construction standstill and offers recommendations to developers to reactivate projects.
SANTO DOMINGO. – Despite the fact that, according to the Registry of Building Supply (ROE 2025-1), 52% of construction projects in the country are paralyzed in a large part of the country, the engineer and former president of the Dominican College of Engineers, Architects and Surveyors (CODIA), Martín Concepción, assures that there are several causes that explain this situation, with the lack of planning and the irregularity in permits being the main factors.
“One of the most frequent reasons is that the work has started irregularly, without the corresponding permits, and that inspectors from the city councils, the Ministry of Housing or the Ministry of the Environment arrive and stop it,” explains Concepción.
Another reason, according to the expert, is the developer's or builder's financial difficulties. "A lack of liquidity or capital causes construction to stop, and in many cases this is due to poor financial planning by the developer, who didn't properly allocate the necessary resources to advance construction to a certain point," he explains.
The engineer emphasizes that "if the stoppage occurs due to a lack of resources , it is the fault of the builder or developer, because they should have previously estimated the minimum amount of money to execute the project up to a certain point."
Key permissions
Concepción emphasizes that obtaining the appropriate permits is essential to avoid work stoppages. “The main permits that must be obtained are: the land use permit , granted by the municipalities; the environmental certificates from the Ministry of the Environment, if an environmental license is not required; and the building permit from the Ministry of Housing, which was previously granted by the General Directorate of Building of the Ministry of Public Works,” she explains.
The specialist warns that starting a project without meeting these requirements "not only puts the continuity of the work at risk, but also the safety of the workers and the urban planning of the area."
Martín Concepción emphasizes the importance of comprehensive planning before starting any project. “I’m not just talking about planning the construction activities, but also the financial resources needed to get it underway. Lack of foresight is the main cause of project stoppages,” he asserts.
Tips for new developers
The engineer offers clear recommendations to those embarking on a real estate project for the first time: “ Novices should seek advice from experienced developers. The dynamics of a real estate venture are not learned at university; they are learned through practice,” he explains.
“It is essential to understand that, even if a project is designed and has the corresponding permits, it should not be started without planning and without guaranteeing the necessary economic resources,” Concepción added.
According to the engineer, the project shutdowns highlight a structural challenge in the construction sector that requires planning, permit compliance, and adequate financing. “The construction sector remains an economic engine, but it needs responsibility, foresight, and professional guidance to prevent projects from stalling,” he explained.
Economic impact
The halt in construction projects, coupled with the economic slowdown, is creating uncertainty for developers and buyers. The Central Bank reports economic growth of just 2.5% in the first four months of 2025, while the construction sector suffered a decline of 2.3%.
Despite the challenges, the market continues to show demand, especially for apartments, which represent 93% of active units. Concepción points out that “urban vertical development will continue, but only if there is legal certainty, planning, and sufficient financing.”.
