Economy July 21, 2023 | 8:33 am

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Acoprovi says real estate activity is down in the Dominican Republic

Santo Domingo.- The housing construction sector in the Dominican Republic is facing significant challenges due to the fluctuations in inflation that have affected all sectors of the economy. The housing sector, in particular, has been strongly impacted by the rising cost of construction materials.

According to data from the Central Bank, the housing sector experienced high levels of inflation in 2022, making it one of the areas most affected by the economic fluctuations. The Association of Home Builders and Promoters (Acoprovi) acknowledges the need for continued public-private collaboration to address one of the main causes of real estate inflation – the excessive increase in construction material costs.

Eliseo Cristopher, President of the Dominican Confederation of Small Construction Entrepreneurs, highlights the cautious approach of businesses in investing in a situation where material and money prices are high. He notes that there has been a subtle decline in construction material prices, and the sector hopes that with more liquidity facilities, it can be reactivated in the coming months.

Cristopher also points out that after the pandemic, the construction sector saw a slight revival. However, in 2022 and 2023, it has experienced a decline due to the impact of high costs and expensive financing. The recent announcement of legal reserve resources is expected to bring some activation to the sector, but there has still been a decline in the real estate sector in 2023.

In this challenging environment, industry stakeholders are looking for ways to stabilize the housing construction sector and ensure its resilience in the face of economic fluctuations and inflationary pressures. The collaboration between public and private entities is seen as crucial to address the challenges and promote sustainable growth in the housing construction industry.

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