Housing units priced less than or equal to RD$3 million experienced a sharp decline: an 83.8% drop compared to ROE 2024-1.
SANTO DOMINGO. – Data from the Building Supply Registry ( ROE 2025-1 ) published by the National Statistics Office (ONE) , regarding housing prices, reveals a dangerous polarization for the market, as affordable is heading towards extinction in the formal market , while prices per square meter in the most exclusive sectors of the National District continue to climb to historic levels.
The figures confirm a trend that was already emerging in mid-2023, they are not at all encouraging for the promoters of this market and reveal an urgent need : the design of public policies and sectoral alliances that allow the production of housing at prices that most Dominicans can afford.
The 2025-1 ROE not only reveals current market prices but also the country's housing direction: a polarized system where luxury continues to flourish and affordable housing is becoming an almost nonexistent resource. This is the greatest contrast between segments recorded in recent ROE cycles.
An unprecedented collapse:
The 2025-1 ROE reveals that housing units priced at or below RD$3 million experienced a sharp decline : an 83.8% compared to the 2024-1 ROE.
This collapse of the low-cost segment is not isolated: it responds to an adverse situation where the increased cost of materials, the lack of available land at reasonable prices and stricter financial conditions converge.
As documented by El Inmobiliario.do in its report “The Constant Increase in Construction Material Costs: A Barrier to Affordable Housing in the Dominican Republic,” the costs of steel, cement, and concrete blocks saw significant increases between 2020 and 2024, which, according to developers consulted, makes it “increasingly difficult to sustain projects within the low-cost range.”
This pressure is compounded by higher bank interest rates and reduced profit margins for developers, which has drastically limited the production of affordable housing units.
La Esperilla, Piantini, and Naco: the most expensive square meter in the country.
However, while affordable housing is shrinking, the high-end segment continues to strengthen, and the ROE 2025-1 clearly establishes the ranking of neighborhoods with the highest price per square meter:
La Esperilla: RD$166,212 per m²;
Piantini: RD$161,449 per m²;
Ensanche Naco: RD$149,038 per m². All belong to the central area, with great commercial and business dynamism, a zone that concentrates high-density vertical projects, corporate towers, luxury amenities, and a growing presence of foreign buyers or investors with a focus on rental income.
In a 2023 analysis, El Inmobiliario.do already warned that prices in these areas had increased “from 20% to over 100% in just two years,” driven by a combination of rising construction costs and competition for increasingly scarce urban land.
Luxury on the rise, accessibility disappearing.
ROE data paints a clear picture, with three key variables: affordable housing supply is at its lowest point. With an 83.8% drop in units priced ≤ RD$3 million, the country is currently producing less affordable housing than in any recent cycle.
The premium segment continues to expand: the three most expensive neighborhoods in the National District maintain and increase their values per square meter.
The housing gap is widening: while luxury prices are rising, affordability is declining.
In a report on the social impact of affordable housing, El Inmobiliario.do highlighted that Dominican families are being pushed toward outlying municipalities like Santo Domingo Norte, Santo Domingo Oeste, Los Alcarrizos, and Pantoja, where prices are still lower, albeit with less developed infrastructure.
Implications for the future of the market
ROE data and industry analyses point to several challenges, some of them urgent: affordable housing faces a bottleneck that could worsen if subsidies, tax incentives, or large-scale public projects are not implemented; the central business district will continue to attract premium investment, reinforcing the concentration of high-value residential properties; and territorial inequality could deepen, fueling urban sprawl towards lower-cost areas with less access to services.
According to the ROE 2025-1, the Dominican real estate market shows a structural polarization: little space for affordable housing, much expansion in the luxury , and a growing demand that does not find affordable supply .
Housing prices in the Dominican Republic (ROE 2025-1)
| Section | Data / Content |
| 1. Collapse of affordable housing | –83.8 % decline in housing ≤ RD$3,000,000 (vs. ROE 2024-1) |
| Main causes of the decline | – Sustained increase in material costs – Scarcity of affordable urban land – High financing rates – Lower margins for developers |
| Conclusion | Affordable housing has virtually disappeared from the formal market |
| 2. Most expensive neighborhoods in the National District | |
| The Little Pear | RD$166,212 / m² |
| Piantini | RD$161,449 / m² |
| Naco Extension | RD$149,038 / m² |
| 3. Factors driving price increases | – Increase in cement, steel and block prices (2020–2024) – In premium areas: increases of 20% to +100% in two years – Scarce urban land and highly competitive |
| 4. A divided market | |
| Economic segment | Plummeting: down 83.8% |
| Premium segment | Expanding, record prices in the central industrial park |
| Social impact | – Displacement to peripheral areas – Greater territorial inequality – More travel time and cost |
| 5. Where is the market headed? | – Affordable supply is at historic lows – Demand for luxury remains strong – The market is polarizing – Growing risk of urban fragmentation |
| 6. General conclusion | Without active affordable housing policies, the market will continue to build for those who can afford the most, not for those who need it the most. |
