Scams are in the minority, but they make more noise.
Selling an apartment without having moved a single stone. Promoting a project without city permits, without soil studies, without even having set foot on the land. That's the new normal in the Dominican real estate market, and we're not talking about it enough. Today, anyone with an Instagram account and a well-done rendering can rake in millions in pre-sales without a single approved blueprint.
It's important to begin this analysis with a clarification: real estate scams are still the minority. For every 70 off-plan projects that are delivered on time and as promised, there might be one that isn't completed or generates problems. But that one, the one that doesn't deliver, makes more noise than the other 69. It's the one that gets media coverage, the one that generates lawsuits, the one that causes disappointment and distrust among investors and buyers.
Selling without permits: the new dangerous rule
What should concern us is not the pre-sale model itself, but how it's being implemented in practice. It's increasingly common to see projects being aggressively promoted on social media, even with spectacular renderings and eye-catching prices, without having cleared the land, without permits from the City Council, without an environmental impact assessment from the Ministry of the Environment, and without having conducted soil studies. In some cases, there isn't even a formally registered company behind the project.
How can a company announce that it has sold 100% of a project without having moved a single stone? Who oversees that? The lack of clear controls allows what should be the exception to become the norm. And that's where the real risk for the buyer begins.
Money as bait: from hooking into the void
Most of these pre-sales operate on a simple principle: to capture between 10% and 20% of the property's value as a down payment. If it's a RD$5 million apartment, we're talking about RD$500,000 to RD$1 million handed over without any structured guarantees. That money, in the hands of inexperienced developers with no financial backing, becomes a ticking time bomb.
If a project isn't properly funded, or if the company lacks the necessary technical and financial structure, that money gets used to cover operating expenses, advertising, land purchase agreements, or even previous debts. And when the time comes to formally begin construction, the funds are gone. From then on, delays, excuses, silence, and, in some cases, the project disappears altogether.
Inevitable delays vs. disguised improvisation
Serious builders know that delays are part of the game in this industry. Construction isn't an exact science. Weather conditions, material shortages, logistical problems, or regulatory changes can all push back deadlines. We understand.
But what is unacceptable is improvisation. Many of the prolonged delays in pre-sales projects are not due to external factors, but to a complete lack of planning. When a project begins without a realistic technical timeline, a structured financial schedule, and a qualified team, it is doomed to fail.
The risk multiplies when combined with the sustained increase in costs. According to the Direct Housing Construction Cost Index (ICDV) published by the ONE, the average construction cost has increased by 18% since 2021, due to global inflation in steel, cement, electrical systems, and finishes. A financially poorly structured project cannot withstand this impact.
Where are the control mechanisms?
Given this scenario, it is urgent to ask ourselves a question: who is overseeing these practices? Today, in the Dominican Republic, practically anyone can call themselves a “real estate developer,” create a rendering, set up an Instagram account, and start selling without having complied with a single legal process.
Neither the local councils, nor the environmental agencies, nor the trustees are verifying whether the announced projects have a legal and technical basis. And often, preliminary sales contracts are signed without legal counsel, with unclear clauses, or without real penalties in case of breach of contract.
Meanwhile, the buyer remains defenseless. There is no clear protection law, nor a regulatory body with real teeth to punish those who break the law. And that creates fertile ground for informality and abuse.
It's not about stopping growth, but about organizing it
The real estate industry doesn't need brakes. What it needs is order, transparency, and smart regulation. Serious developers—and there are many in this country—don't fear oversight. On the contrary, they need it, because their reputation depends on the market operating with clear rules.
Countries like Colombia and Chile have established regulatory frameworks where pre-sales are only permitted once the project has received formal permits and approved studies. In some cases, the buyer's money is even held in trust until specific construction milestones are reached. This protects both parties: the buyer and the developer.
Why can't we have something similar in the Dominican Republic?
This affects us all: the call to the sector
The time has come to recognize that this is not an isolated problem. This affects us all. It affects the builder who fulfills their obligations, the developer who delivers on time, the seller who works diligently, the buyer who trusts them, and the commercial and tourism sectors that benefit from a healthy real estate environment.
As part of the ecosystem, we have a responsibility to speak out and demand serious regulation. We cannot continue to allow improvisation and informality to destroy the credibility of a sector that has proven to be key to the country's development.
If we want real estate tourism to continue growing, foreign investment to remain strong, and Dominicans to continue investing in their country, we have to take care of the industry. And that starts with curbing the chaos and setting clear boundaries.
The future of the sector depends on its credibility
Construction and real estate development will continue to be pillars of the country's economic growth. But if no action is taken, reputational risk will translate into a contraction of local and international investment. Serious investors—whether Dominicans abroad, foreign funds, or local families—need to know that their money is protected by more than just a developer's word.
It's time to make decisions. The question isn't whether to regulate pre-sales, but how to do so intelligently and fairly, so that the sector continues to grow without leaving victims in its wake.
Because building isn't just about laying bricks: it's about keeping promises. And in a country where trust is capital, there's no investment more valuable than credibility.
The opinions expressed in this article are the sole responsibility of the author.
