The pace of sales of ready homes in Dominican Republic slowed down in the first half of 2023

Santo Domingo.- In the first half of this year, the pace of real estate sales in the Dominican Republic’s Metropolitan region slowed down, dropping from 1.9% to 0.5% compared to the same period in 2022. However, future expectations for the sector have risen to 48%, largely due to the number of ongoing construction projects. This information comes from the National Statistics Office (ONE) in its latest Building Supply Registry (ROE), which assesses areas under construction and the supply and demand of units under construction, completed, and reserved, based on their intended use.

The slowdown was particularly notable in housing units that had been completed and on the market for more than three months. The ROE report uses a ratio of units ready for approximately 90 days over those with immediate availability to measure sales velocity, with a higher ratio indicating slower sales.

As of the report, 76.4% of construction-suitable areas were under active construction, while 20.7% were halted as of June. Only 1.1% of the areas were completed, and 1.7% were registered in plans for construction. The total square meterage under construction was 5,577,857.6, with the majority (82.7%) intended for housing, followed by commerce (6.5%), education (3.5%), health (2.7%), and other activities.

The report also highlights the significant increase in the price of low-cost homes, which surged by 114% as of June, rising from 3 million to 5 million pesos. In terms of location, Santo Domingo Este led with 11,044 housing units, followed by Santo Domingo de Guzmán with 10,828, and Santo Domingo Norte with 9,161.

The most popular price range for housing units sold, separated, or reserved was between 3 million to 5 million pesos, accounting for 30% of the total units and 23.9% of the salable construction area. Properties costing less than 3 million pesos were the next most popular, followed by those priced between 8 and 15 million pesos.

The total number of houses and apartments negotiated in the metropolitan region until June 2023 was 19,365. The salable construction area of works sold, separated, or reserved was 1,938,825.5 m2, marking a significant increase of 110.8% compared to the previous year. Notable increases were observed in Boca Chica, Santo Domingo North, Santo Domingo East, and Santo Domingo West.