Construction in Dominican Republic – Key Trends and Opportunities (H1 2021)

The Coronavirus (COVID-19) pandemic created significant disruptions to the Dominican Republic’s economy, with containment measures bringing many key sectors to a standstill and causing a sharp decline in construction output last year. According to the Central Bank of the Dominican Republic, the construction industry’s output value contracted by 10.7% in 2020, following growth of 10.4% in 2019.

In 2021, GlobalData expects the industry to partially recover by 7% in real terms, and then expand at an annual average rate of 5.1% between 2022 and 2025. Growth is set to be supported by the government’s efforts to raise investment on transport infrastructure, residential and energy construction projects. In the 2021 budget, the government plans to allocate US$299.3 million to improve the country’s transport system. Furthermore, falling COVID-19 cases and plans to vaccinate most of the country’s population by the end of this year offer additional optimism to the short-term outlook, as they could allow a faster reopening of domestic activity and support the recovery of hard-hit sectors such as tourism.

To support the local economy, strengthen key industries and create jobs, in 2020, a memorandum of understanding (MOU) was signed between the US International Development Finance Corporation (DFC) and the Dominican Republic to mobilize investments in tourism, energy, transport and other infrastructure projects. Under the agreement, both countries will work to recognize priority projects and finance them to move forward and boost sustainability and innovation by strengthening local regulatory frameworks.

In November 2020, the Central American Bank for Economic Integration (CABEI) announced that it has approved DOP39.5 billion (US$783.8 million) to support social development in Dominican Republic. Through this, CABEI provided DOP13.3 billion (US$249.6 million) financing for the construction of the Montegrande Phase III Multipurpose Dam.

This report provides detailed market analysis, information and insights 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 (2016-2020) and forecast (2021-2025) 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.

Table of Contents

Table of Contents

1. Construction Outlook

2. Construction Industry: At-a-Glance

3. Latest News and Developments

4. Project Analytics

5. Construction Market Data

6. About GlobalData

6.1 Definitions

List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: Dominican Republic, Top Construction Projects by Value

Table 3: Dominican Republic, Construction Output Value (Real, US$ Million)

Table 4: Dominican Republic, Construction Output Value (Nominal, DOP Billion)

Table 5: GlobalData Construction Market Definitions

List of Figures

List of Figures

Figure 1: Dominican Republic, Construction Output Value (Real, US$ Million, 2017 Prices and Exchange Rate), 2016-2025

Figure 2: Dominican Republic, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 3: South and Central America, Construction Output (Real % Change), 2020 and 2021

Figure 4: Dominican Republic, Construction Projects Pipeline by Sector (US$ Million)

Figure 5: Dominican Republic, Construction Value Add (% Change YoY, at Constant Prices)

Figure 6: Dominican Republic, Fixed Capital Investment (Accumulated % Change, Y-o-Y)

Figure 7: Dominican Republic, Index of Direct Costs of Home Construction (2010=100)

Figure 8: Dominican Republic, Construction Projects Pipeline, Value by Stage (US$ Million)

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