Construction Costs in Motion: ICDV Drops Slightly in April – Annual Average Remains High

Construction progress under the Caribbean sun – modern living taking shape in Bayahibe.

Bayahibe, May 26, 2025 – Good news for those looking to build or invest in the Dominican Republic: The ICDV (Índice de Costos Directos de la Vivienda), or Direct Housing Construction Cost Index, recorded a slight decline in April 2025.

But what does this actually mean for property buyers, investors, and developers?

📉 What is the ICDV?

The ICDV measures monthly changes in direct construction costs – including building materials, labor, transportation, and other core construction inputs. It is published by ACOPROVI (the Dominican Association of Housing Developers) and the national statistics office ONE.

This index is a key reference for pricing trends in the real estate development sector.

📊 The April 2025 Update

After a continuous rise over the past year, the index has now shown a slight downturn.➡️ This suggests a potential stabilization, though the overall cost level remains high compared to the previous year.

🔍 What Does This Mean for Real Estate Investors?

• 🧱 Construction costs remain a major factor in project pricing.

• 📈 A high ICDV often leads to price adjustments for new developments, especially those without fixed pre-sale pricing.

• 💡 A decrease in the index could signal more favorable market conditions for developers and buyers alike.

For those purchasing in pre-construction projects (such as Ocean Residences Bayahíbe), this matters:👉 Price adjustments during construction are often tied to the ICDV. A stable or falling index can limit or avoid price increases.

🧭 Conclusion

April shows the first signs of a cooling trend in construction costs – encouraging for investors, though far from a reversal.At CaribeExpert Real Estate, we keep a close eye on economic trends that may impact your investment, offering clear, up-to-date information to guide your decisions.