He warns that many Dominicans would not be able to access low-cost housing vouchers.
SANTO DOMINGO. – “2024 was a challenging year for us due to high interest rates and rising housing prices, which made it difficult to access financing for new construction projects,” stated Annerys Meléndez, president of the Dominican Association of Housing Builders and Developers (Acoprovi), who added that this situation negatively impacted buyers when purchasing property.
According to the business leader, the challenge of increased construction costs that the housing sector has faced in the last year has not been properly included in the inflation adjustment of the ceiling for qualifying low-cost housing, which she warns could leave thousands of low-income Dominicans without access to housing.
Meléndez warned that 2025 presents the new challenge that many Dominicans will not be able to access the low-cost housing bonus because the qualification ceiling does not reflect the reality of housing prices.
The construction businesswoman pointed out that the national budget does not meet the need for investment in city infrastructure to improve the quality of life for Dominicans, a reality that, combined with high interest rates, affected access to decent housing during 2024.
Meléndez's remarks were made during the entity's business luncheon, which focused on the "Economic Environment and Construction Sector: Perspectives, Risks and Opportunities," facilitated by economist Magin Díaz.
Meléndez emphasized that, despite unfavorable circumstances, construction remains one of the economic sectors that contributes most to the country's growth, and that, from Acoprovi, he will continue to ensure that Dominican households have access to affordable, dignified housing that meets their life aspirations.
Financing of the national budget
Díaz considered that in economic terms, the great challenge for the Dominican government in 2025 will be the financing of the National Budget, since the gross financing need amounts to US$5,561.6 million.
During his presentation, the professional indicated that the current fiscal deficit amounts to US$3,848.4 million. However, in the short term, Díaz does not foresee any major risks that would prevent covering it, and he believes the probability of an economic crisis is low.
Regarding the construction sector, Diaz highlighted that this sector represented almost 10% of the growth of the IMAE (Monthly Indicator of Economic Activity) of the country, compared to January-November 2023, and had a participation of 15% of the GDP, which reflects the relevant role of construction for the local economy.
He added that the sector's average year-on-year growth rate over the past 5 quarters was 4.2%, equal to the average for the economy.
Acoprovi's business luncheon was held at the Embassy Suites by Hilton hotel, and, in addition to the economist's presentation, it included a networking space, through which the association continues to educate the sector and expand its network of professional contacts.
