Why has the value of the properties in Casa de Campo increased? Low supply and high demand? Did COVID 19 have something to do with it?
It is not a secret that what has been experienced in the Dominican Republic in terms of disproportionate increases in materials used in construction, some of which in the last two years have increased by more than 120%, for which the real estate market has become in a; during the COVID crisis.
Unexpectedly, home prices have overcome the economic turbulence of the worst months of the pandemic.
Today, with the economy recovering, buying, and selling activity has fully resumed and prices continue to rise. Furthermore, by the end of the year, house prices are expected to grow at their highest rate in three decades.
How far can this trend go? Are we in another housing bubble? What are the risks of a functioning economy?
Casa de Campo is no exception to the increase in housing prices (both new as used) that rose to 6.8% in the second quarter of 2021 (the fastest pace since 2006) according to the latest data. But the great ascension could still be ahead. A few factors, both supply and demand, are sure to create another for property prices in the latter part of the year.
The construction industry of the Dominican Republic warned today that housing prices will rise in the country due to global inflation and the delicate situation of the international transport logistics sector.
Some sectors of the industry have issued reports explaining that the situation is aggravated by the armed conflict between Russia and Ukraine that has affected the prices of construction materials and essential local supplies.
It reported that the value of the square meter of construction increased 28.3%, according to the Index of Direct Costs of Housing Construction of the National Office ofStatistics, and added that with the escalation in the prices of construction materials since 2020, they have increased by around 60% and 40%, for steel and cement, a figure that could continue to increase Index of Direct Costs of Housing Construction in the coming months up to 40%. more, when the entry into force of this important price increase is announced and with the recently approved adjustment to the minimum wage in the construction industry.
The general increase in prices is a sum of variables, which start with the COVID 19 pandemic, the health crisis has causedan unprecedented economic shock added to the situation in Ukraine has caused a rise in prices worldwide, and clearly the real estate sector has suffered like many others, it is now when, despite the dim forecasts, we hope that the authorities will be able to overcome it in a good way this period. In any case, the future looks hopeful, even though the reduction in housing prices is conditional on a decrease in the price of construction materials. According to experts, the increase registered in the last two years will now be reversed, until the additional costs are absorbed in 2025.
To keep up with the times, this great project has the latest technology in home automation, which will allow to control the most sensitive aspects of the house, as well as give a special focus on home security. With this system, each inhabitant of the house will be able to remotely control the lights, play their favorite music, send a message, or turn on the TV, as well as control the air conditioning from their cell phone. Another aspect to mention at this point is that all homes will be able to have electric chargers for vehicles that require this function, which can be powered from the solar panels already installed.