He argues that the growth in the sector's economic activity over the past 5 years is also reflected in the number of approved construction projects, which have rebounded from 152 in 2017 to 423 last year.
SANTIAGO.- In the last five years, the accumulated added value of the construction sector in Santiago reached RD$305,804 billion pesos, equivalent to 11.1% of the sector's total GDP. This means that one out of every nine pesos of the national added value of construction was generated in this province, according to findings from the study "Economic Sizing of the Construction Sector in the province of Santiago," prepared by APROCOVICI, the Association of Housing Promoters and Builders of Cibao.
The research establishes that from 2016 to 2021, Santiago's total investment in infrastructure and the development of real estate and residential complexes reached RD$63,008 billion. Of this amount, three out of every four pesos were invested by the private sector.
He argues that the growth in the sector's economic activity over the past 5 years is also reflected in the number of approved construction projects, which have rebounded from 152 in 2017 to 423 last year.
The document reveals that the urban area of the city of Santiago has expanded and consolidated by 42.72 square kilometers, which could be equivalent to 47 times the Colonial City of Santo Domingo, during the last 20 years.
The study shows that during the last five years the construction sector in Santiago has grown more rapidly than in the rest of the country, according to metrics of GDP, employment, average labor income and sales reported to the General Directorate of Internal Taxes.
Similarly, the research says, real estate expansion has predominated towards the northwest area, while consolidation has predominated in the Central-East area of the urban zone.
Employment in the construction sector registered increases in 4 of the last 5 years (including during the Covid-19 episode), averaging a growth of 10%, while the allocation of public investment to Santiago has been relatively below private investment, the document reveals.
Between 2016 and 2021, the number of construction companies in Santiago nearly doubled, increasing from 329 to 654, expanding at a faster rate than in the rest of the country. By the end of 2020, one in nine construction companies nationwide were located in Santiago.
Real estate development opportunities
The study identifies areas with real estate development opportunities in the city center, such as the monorail route, the conversion of land into a high-comfort central zone including the historic center, commercial real estate, and high-end housing in the central-northeast zone, due to its attractiveness and proximity to the population engaged in these activities in the Northwest zone. It also highlights social housing typologies in the vicinity of industrial parks that generate worker displacement in the Southeast zone, and the concentration of green areas in the central polygon of the study area. The research identifies real estate development opportunities based on the environmental quality generated by the proximity to these natural spaces.
"The members of APROCOVICI have contributed over the last 20 years to the consolidation of the existing urban fabric and constitute a fundamental actor in updating current regulations and promoting this type of initiative in the municipalities bordering Santiago de los Caballeros," said Landy Colón, president of the association, during the launch of the study.
About APROCOVICI
The association's website states that its main objectives include integrating individuals and legal entities directly involved in the construction and promotion of housing in the Cibao region into a non-profit group, in order to promote cooperation among members and strengthen their relationships through consultations, studies, agreements, resolutions, and any other means the Association deems appropriate.
It also disseminates all types of information on housing among its members, providing technical assistance when required, promoting the greatest possible harmony and uniformity in the operations and activities of the associates, and holding congresses, scientific events and, in general, promoting and supporting any initiative that tends to the improvement and development of housing.
