Persistent Delays in Construction Permits Throughout 2024 in the Dominican Republic

Throughout 2024, the Dominican Republic’s real estate sector faced ongoing challenges with significant delays in the issuance of construction permits. This issue, frequently highlighted by developers and business leaders, has continued to hinder the growth of the industry, which is essential to the country’s economic development. The delays have been particularly evident across several government agencies, including the Ministry of the Environment and Natural Resources (MIMARENA), the National District Municipality, the Ministry of Tourism, and the Ministry of Housing, Habitat, and Buildings (MIVHED), leading to widespread frustration within the construction sector.

In June, various construction associations urged MIMARENA to address the growing obstacles and streamline the permit process. They pointed out that the approval time, which once took around 15 days, had expanded to as much as six months, a change that they argued significantly impacted the construction sector’s growth potential for the year. Annerys Meléndez, president of the Dominican Association of Builders and Housing Developers (ACOPROVI), warned that these delays could result in considerable losses for one of the country’s most critical sectors, putting jobs and investments at risk.

In the eastern region, developers, including Daniel Cordero, director of Morada Developments, shared their concerns, stating that the delays in permit issuance were affecting project timelines and could harm the region’s development. Cordero emphasized that such delays were damaging to the industry’s reputation, as they resulted in constant delays in project delivery, further complicating the work of developers in this vital part of the country.

Furthermore, the Association of Builders of Santo Domingo East (ACOSDE) voiced its concerns about the inefficiency of the permitting process. They noted that delays led to increased project costs, higher financing expenses, and disruptions to delivery schedules. ACOSDE emphasized that the lengthy bureaucratic process was taking an unnecessary toll on the construction industry, with some procedures extending beyond two years without providing concrete solutions. The association stressed that the responsibility for issuing approvals, including land use permissions and project density and height regulations, lies with local municipalities, and that these procedures should be more efficient and aligned with the law.

Calls for Action: Reforming the Bureaucratic System

As the delays persisted, many industry leaders called for urgent reform to address the inefficiencies in the system. Cristian Rojas, former president of the Dominican College of Engineers, Architects, and Surveyors (CODIA), suggested that President Luis Abinader should consider replacing officials who were unable to meet the demands of the sector. Rojas emphasized that the delays were not only slowing down the economy but also undermining the work of hundreds of investors who relied on timely approvals for their projects. “The economy cannot afford to be paralyzed, especially when investors face financial pressures, and these delays only reduce the profitability of projects,” he stated.

Teodoro Tejada, also a former CODIA president, was particularly critical of the former Minister of the Environment, Miguel Ceara Hatton, who he argued had reversed much of the progress made in the previous two decades. Tejada claimed that the delays were a direct result of Hatton’s leadership, which he described as a significant setback for the sector. He further criticized Hatton’s management, claiming that it had regressed the advances made in the construction industry in recent years.

Government Response and Efforts to Improve

In an attempt to address the growing concerns, government officials outlined measures aimed at improving the permitting process. Vivian Reyes, Vice Minister of Standards, Processes, and Regulations at MIVHED, explained that her ministry had been reinforcing staff in areas with high demand for permits, such as Santiago and Punta Cana. She also mentioned that a new digital platform had been introduced to help balance the workload across various regional offices, rather than centralizing all requests in the National District, which had led to some offices being overwhelmed while others were underutilized.

Meanwhile, Paíno Henríquez, the current Minister of the Environment, responded to the criticism, noting that the Ministry had made significant progress under his leadership. In November 2024, he reported that over 3,000 environmental permits had been granted, a marked improvement he attributed to the streamlining of processes in the first 100 days of his administration.

The Road Ahead: Collaboration is Key

The construction industry remains a key pillar of the Dominican Republic’s economic growth, but its full potential is still constrained by the bureaucratic inefficiencies surrounding the permitting process. To ensure that the sector continues to thrive and attract investment, it is crucial for both industry leaders and government agencies to work together. Streamlining the approval processes while ensuring that necessary regulations are followed will be essential in preventing further delays. Only through these efforts can the real estate sector overcome its current challenges and continue to contribute to the nation’s ongoing development.

Source: Inmobiliario DO. (2024). Tardanza emisión permisos: Una queja que se mantuvo latente durante el 2024 en el sector construcción del país