The cost of masonry labor, steel, concrete, cement and glue, among others, are the ones that have most influenced the increase in the Direct Cost Index of the Home building (ICDV) so far this year.
The data is contained in the publication of the Ministry of Economy, Planning and Development (Mepyd): “Sector Outlook/May 2022”.
Official data indicates that by type of dwelling, the monthly and accumulated increases in one level are notable (ICDV-226.3; with an increase of 9.1 and 11.2%, respectively). However, from a year-on-year perspective, four-story dwellings are the ones that experienced the greatest variation (ICDV-221.2; 18.2%).
In the construction industry, according to the document, deflated loans directed to the sector were 72.9 billion pesos, which represented a year-on-year increase of 7.2%. It details that loans in national currency (77.7% of the total portfolio) presented an interannual growth of 2.8%, while those granted in foreign currency registered an expansion of 25.9%.
The Mepyd reported that the ICDV presented a monthly variation of 7.8% and a year-on-year variation of 16.4%.
Recently, the Central Bank of the Dominican Republic (BCRD) reported that the Monthly Indicator of Economic Activity (IMAE) registered an interannual growth of 4.8% in the month of May, for an accumulated variation of 5.6% during the first five months of 2022 when compared to the same period in 2021.
Within that report, the BCRD indicated that construction activity increased 3.2% in January-May 2022 in year-on-year terms, a result that was influenced by the considerable increase in the price of construction supplies and by the statistical effect of the base of comparison, since in the same period of 2021 this sector registered a significant expansion of 53.0%.
However, the BCRD indicates that the average volume index of construction activity turns out to be 17.0% higher than in January-May 2019 (pre-pandemic) and its dynamics is supported by the execution of residential, industrial development projects and tourism of private capital, as well as by the important works of civil engineering and infrastructure by the Government.
Diario Libre published a story about complaints from citizens who understand that construction companies are disproportionately increasing the prices of houses already set aside in plans. The construction companies allege that the prices of the materials have experienced significant rises. Diario Libre published a story about complaints from citizens who understand that the construction companies are disproportionately increasing the prices of houses already set aside in plans. Construction companies argue that material prices have risen significantly.
