Dominican Republic Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

Dominican Republic Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

Summary

Following annual growth of 0.6% in 2022, Dominican Republic’s construction industry is expected to decline slightly by 0.1% in real terms in 2023, reflecting a slowdown in the construction activities in the first half of 2023, owing to high construction costs, high interest rates and cessation of construction activities by companies during the first half of 2023. In October 2023, the Central Bank of Dominican Republic (BCRD) reduced the interest rate by 25 basis points to 7.25% from 7.5% in September 2023, but it is still above the targeted rate of 4%. Moreover, construction of the Dominican Republic’s Bávaro international airport were was cancellws by the Supreme Court in May 2023 due to legal issues. According to the Banco Central Dominicano (BCRD), the construction industry's value add, in terms of chained volume index, declined by 0.5% year on year (YoY) in Q2 2023, preceded by Y-o-Y decline of 4.3% in Q1 2023 and 3.6% in Q4 2022.

Over the remainder of the forecast period, the construction industry is expected to record an average annual growth of 3.8% between 2024 and 2027, supported by an anticipated rise in the investors’ confidence owing to declining interest rates since July 2023. After a continuous rise in interest rate since the commencement of Russia-Ukraine war aggression until June 2023, the BCRD reduced the interest rate from 8.5% in June 2023 to 8% in July 2023 and eventually to 7.25% in October 2023. This policy easing will provide scope for an improvement in investment in the infrastructure, renewable energy and housing sectors. In May 2023, the World Bank approved a loan of DOP22.4 billion ($400 million) to the country for the development of the renewable energy sector in line with the country’s objective to achieve carbon neutrality by 2050. Over the forecast period, the residential sector’s output will also be supported by 'Happy Family National Housing Plan (PNVFF)', which aims at building 62,000 homes through a public-private partnership by 2025, with an initial investment of DOP1.8 billion ($32.2 million) and is projected to reach DOP11.1 billion ($198.6 million) by the end of 2025.

The report provides detailed market analysis, information, and insights into Dominican Republic’s construction industry, including -

• Dominican Republic’s construction industry's growth prospects by market, project type, and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Dominican Republic’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Dominican Republic. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Dominican Republic, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.