Dominican cement price rise affects housing construction

In the Dominican Republic, cement prices, as represented in the Direct Cost of Housing Construction (ICDV), have increased by 49.3 per cent between January 2020-April 2024, according to the Dominican Association of Housing Builders and Developers (Acoprovi). This is causing inflationary pressures and increasing the cost of housing construction as cement represents 18 per cent of construction costs.

In 2024 to date cement prices have advanced by eight per cent with an extra six per cent anticipated before the end of this year. This is expected to result in a three per cent increase in the cost of housing and represents a significant challenge for low-cost housing, according to the association. As a result, the 10,000 homes that originally qualified as low-cost housing and were approved in 2023 for 2024 delivery could lose their classification, affecting the ability of numerous Dominican families to buy their own home.

“It is crucial to consider the direct impact that these increases have on access to housing; An excessive increase not only reduces the population's accessibility to affordable housing, but could also lead to a decrease in home sales, which would eventually result in a reduction in cement consumption, because this negative dynamic impacts both the construction sector as well as the country's economy in general,” said the President of Acoprovi, Annerys Meléndez.