What do the builders suggest so that the increase in materials does not affect home buyers?

Santo Domingo, DR

The Dominican Association of Home Builders and Promoters (Acoprovi) agrees with the suggestions presented in an article by Jordan Estévez, published this Thursday.

The president of Acoprovi, Jorge Montalvo, proposed some measures that are necessary so that the rise in construction materials is not fully charged to the purchasers since he clarified that for years in the clauses of the contracts of the majority of members of Acoprovi stipulates how the materials are at the time of buying the property and monthly the National Statistics Office (ONE) monitors those costs.

Here are some of the measures presented by Acoprovi after the publication of the engineer Estévez:

1. A temporary reduction in tariffs as a measure to help reduce the hikes in construction materials. This measure could be provided temporarily.

Montalvo cites as an example that, recently, in the United States, since a lot of wood is used in construction and the price of wood has risen, a reduction was made on lumber imported from Canada, reducing the tariff from 20% to 9%.

2. Streamline processes to require less time for project approval. 

3. Charge the freight fee based on the price existing before the pandemic.

Montalvo points out that it is essential to see the rise in freight rates of up to 300% in some cases since it is being calculated on a tax that is already distorted.

With this third measure, Acoprovi explains that the Dominican Government, unwittingly, benefits from the rise in prices and can increase material costs being reflected much more.

4. Another measure mentioned by Montalvo to Listín Diario is that the interest for the financing rates of the promoters can be reduced, which can be 4% to stimulate the construction of housing projects.

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