The Dominican Liberation Party (PLD)through its Secretary of Business Affairs, assured yesterday that the construction sector is facing one of the most difficult times due to the increase in the prices of materials, the high cost of labor, the devaluation of the dollar and the high interest rates. financing.
Jeffrey Infante expressed that these elements create the perfect storm for those who are dedicated to construction to be significantly affected, many of whom are finishing projects just to save their reputations and lose as little as possible.
“Others are choosing to wait for the evolution of the sector to consider starting new projects. The situation is complicated”, declared the also member of the Central Committee of the PLD in a press conference.
He argued that the cost of labor has increased by more than 50% on average and in some cases it is much more, adding to that the devaluation of the dollar, which in his opinion “gave the coup de grace to those who sold with the dollar at $57×1”.
“To give you an idea of what we are saying: the National Congress had to increase the cap on low-cost housing from RD$3.8 million to RD$4.5 million, which confirms the reality of the sector and if it continues like this they will have to increase it again. ”, explained Infante.
He pointed out that today, with the increase in the interest rate up to 12% and financing for 20 years, 75% of the RD$4.5 million of a low-cost home, a family would be paying a monthly loan installment of RD$41,900, including the insurance payment, representing an increase of RD$6,500 per month plus payment of the loan installment only.
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In this sense, the political leader of the purple party understands that the government must take action so that the construction sector does not collapse and can continue to float.
“The government must go to the aid of the sector, since it represents 7% of Dominican employment, some 330,000 people with direct jobs,” he added.
