The prices of tools, materials, supplies and other associated components for the construction of a dwelling in the Dominican Republic are increasingly increasing, affecting the dynamism of the construction sector and raising the final cost to acquire or rent a dwelling.
According to the Index of Direct Costs for Home Construction (ICDV) – a tool that analyzes each month the cost to build a house, an apartment or larger housing projects – stood at 235.73 in November, for an interannual increase of 3.74% compared to last November’s result, of 227.22.
It is a accumulated increase of 3.53%seen since January of this year, when the indicator varied slightly and stood at 236.07, although a decrease of 1.48% is reflected between October and November, according to data offered by the National Statistics Office (ONE).
Variation by types of housing
In one month, the direct costs seen by the type of building reflected slight decreases, with the multifamily housing of eight levels or more showing the most significant decrease in November, of 2.38%.
The single family homes two-level also recorded a reduction of 1.53%, followed by the dwelling single-family one-level (-1.07%) and the multifamily housing four levels (-0.96%).
Behavior of costs by group and subgroup
By breaking down the monthly variation of the index by cost group, it is observed that tools were the only ones that registered a significant increase between October and November of this year, with an increase of 7.87%.
In contrast, other groups such as subcontracts, machinery and labor they remained stable or presented minimal price variations.
By cost subgroups, the main monthly increases They were concentrated in tools (7.87%), aggregates (4.93%), blocks and others (2.49%), completion subcontract (1.91%) and electrical miscellaneous (1.58%).
Steel (-18.10%), wires, nails, zinc and others (-8.14%), electrical wires (-2.02%), paint (-1.25%) and wood (-1.03%) were inputs that, on the contrary, showed reductions in their costs in November.
