The executive director and CEO of Velutini Group, Luis Emilio Velutiniwarned that the real estate market of the east zone The country is going through a growth process that, in certain sectors, has led to an oversupply of residential projects that could represent a risk in the medium term.
In addition to investments in shopping malls and commercial office buildings, the Velutini Group has built 3,000 units residential areas in Santo Domingo, Puerto Plata and Punta Cana. The businessman pointed out that the main challenge lies not only in the volume of developments underway in the east at a general level, but in the real capacity of buyers to assume the deliveries of the units.
He indicated that, currently, a significant part of the acquirers formalized their shopping in a context marked by economic stimuli derived from the pandemic, which are no longer in force.
“We see it from low costs, middle class and luxury. The people “is not about receiving the properties,” he expressed during his participation in the Free Dialogue of this newspaper.
He explained that, although the Velutini Group has not experienced a decrease in its sales, this situation is already manifested in other companies in the sector and could become a more far-reaching problem.
“Clear rules”
The executive pointed out that the real estate sector contemplates the need to establish some type of regulation for the platforms of short term rentalas Airbnbconsidering that they currently compete under unequal conditions compared to other market players.
He indicated that the eastern region has more than 60,000 rooms intended for rent short stays, compared to some 50,000 units offered by the traditional hotel industry.
Piantini and the city
When referring to Piantiniin the National District, indicated that, despite the general perception of saturation, the sector still has spaces and opportunities to explore. He explained that it is an area that continues to attract residential demand, driven by its location, its offer of services and an attractive urban lifestyle for new residents.
In his opinion, this process responds to a natural transformation of the urban fabric and the profile of those who live in the area.
The representative of the Velutini Group stated that one of the main challenges facing the real estate sector is not the number of permits required, but the slowness with which these are processed by the corresponding institutions.
“I think the only thing we could really complain about is that it is difficult to obtain all the permits, even if you have everything according to the rules,” the businessman concluded.
Luis Emilio Velutini explained that, even when developers comply with all the requirements established by current regulations, obtaining authorizations within a reasonable period continues to be a challenge that affects the timely execution of projects.
