SANTO DOMINGO. – Housing construction costs continue to rise daily due to a wave of adverse factors stemming from various sources, ranging from the lingering effects of the COVID-19 pandemic, which led to a significant increase in construction materials, to the six-month-long war in Ukraine that has generated large-scale global inflation.
In the last two years, construction materials have skyrocketed by up to 250%, creating a chain of difficulties for builders and buyers. Builders have had to raise prices to reflect the current situation, while buyers face unexpected price increases that have impacted their plans and their finances
According to a publication in Diario Libre today, the direct costs of housing construction continue to reflect significant increases, reaching an accumulated variation of 11.0% and an interannual variation of 14.1%, according to the most recent monthly report from the Ministry of Economy, "Sectoral Panorama," corresponding to last June.
According to the report, the subgroups that experienced the greatest cumulative variations were boat subcontracting (57.7%) and painting and carpentry labor (with increases of 21%).
It is observed that among the subgroups that contributed most to the accumulated variation of the Direct Cost Index of Housing Construction (ICDV) are masonry labor, steel, concrete, cement and glues.
Regarding housing
By type of housing, the Ministry of Economy highlights the monthly and year-on-year increases corresponding to four-level housing (1.6% and 16.8%, respectively).
Regarding the accumulated variations, two-level homes experienced the greatest variation (11.6%).
Loans for the sector
The June "Sectoral Overview" report indicates that in construction, deflated sales showed a positive variation compared to the same month of the previous year.
“This trend is consistent with the increases recorded in the loan portfolio (mainly in foreign currency) directed to this sector. However, inflationary pressures continue to impact these subsectors,” it states.
Source: Diario Libre
