Dominican Republic Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028

Dominican Republic Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2024-2028

Summary

Dominican Republic’s (DR) construction industry is expected to grow by 2.2% in real terms in 2024, before recording an average annual growth of 4% between 2025 and 2028. Growth in the industry will be supported by government investment into commercial, infrastructure, renewable energy, and housing projects. After a continuous rise in interest rates since the commencement of the Russia-Ukraine war, aimed at combatting the rising inflation rate, which significantly increased construction costs, the Central Bank of the Dominican Republic (BCRD) has since reduced its interest rates. The rates were dropped between April 2023 and November 2023 from 8.5% to 7% and have since been maintained at 7% as of the April 2024 meeting, with inflation now considered under control and within the government target of 4%. As a result of this monetary loosening and with further expansion expected in the future, this will lead to an anticipated rise in business confidence, as real effects from the lower interest rates impact the real economy.

Over the remainder of the forecast period, the construction industry’s growth will also be supported by the development of the renewable energy sector, in line with the country’s objective to achieve carbon neutrality by 2050. In March 2024, Dominican Republic based, Punta Cana Macao Energy Consortium announced its plan to build the FV3 photovoltaic park by 2030, in line with the country’s objective to increase the share of renewable energy sources in the electricity mix from 24% in 2019 to 30% by 2030. Growth in the forecast period will also be supported by the launch of the National Road Infrastructure Connectivity and Transformation Plan by the Ministry of Public Works and Communications (MOPC). With an investment of DOP24.3 billion ($421 million), the project involves construction of a 15.3km road for reducing traffic congestion. It also includes construction of a 67.9km highway from San Pedro de Macorís to the municipality of Miches, with two new lanes. Growth in forecast period will also be supported by Inter-American Development Bank’s (IDB) loan of DOP7.8 billion ($140 million) towards the country’s Road Infrastructure Rehabilitation and Maintenance Program as part of Vision 2025 - Reinvest in the Americas: A Decade of Opportunity.

GlobalData’s Construction in Dominican Republic - Country Briefing (H1 2024) 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 (2019-2023) and forecast (2024-2028) 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.