Construction sector drives 70% of Proconsumidor complaints

Santo Domingo.- The construction sector plays a significant role in the Dominican Republic’s economy, accounting for 2.5% of GDP. However, in January 2025, it experienced a 7.3% year-over-year decline, according to the Central Bank. Despite its economic importance, 70% of complaints received by the National Institute for the Protection of Consumer Rights (Proconsumidor) involve real estate issues such as fraud, hidden defects, and unfair contract clauses, reported Proconsumidor’s Executive Director, Eddy Alcántara.

Alcántara highlighted that many real estate contracts include an indexation clause, which passes the cost increases of construction materials onto consumers. The problem arises when these increases are applied arbitrarily and monthly, a practice Proconsumidor does not permit. Instead, adjustments should follow official statistics from the National Statistics Office (ONE) and the Central Bank.

Most disputes are resolved through conciliation, with 85-90% of parties reaching agreements based on Proconsumidor’s and industry associations’ guidance. To increase transparency, a real estate supplier registry is being developed, allowing consumers to verify the reputation and legal history of development companies. Alcántara warned that suppliers who opt out of the registry risk consumer distrust and noted that the proposal will be shared with construction companies and the Dominican Association of Builders and Housing Developers (Acoprovi).