Affordable and resilient housing
Affordable and resilient housing
Business Model Description
Promote the use of sustainable and disaster-resistant materials and techniques for affordable and resilient housing. Collaborate with local architects and contractors, implement innovative project management practices, and access to financing for the beneficiaries at the base of the pyramid.
Expected Impact
Increase in affordable and resilient housing to address the housing deficit of 1,464,995 households in the Dominican Republic
How is this information gathered?
Investment opportunities with potential to contribute to sustainable development are based on country-level SDG Investor Maps.
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Country & Regions
- Cibao Norte
- Cibao Sur
- Cibao Nordeste
- Cibao Noroeste
- Valdesia
- El Valle
- Enriquillo
- Yuma
- Higuamo
- Ozama
Sector Classification
Infrastructure
Development Need
1) According to the World Economic Forum, the country ranks 79 out of 141 regarding infrastructure quality. 2) The Inter-American Development Bank estimates that the Dominican Republic needs to invest around 5% of its annual GDP in infrastructure to close the gap with its regional peers (1).
Policy Priority
The country established investment in infrastructure as one of its top policy priorities. Priority projects include the construction of roads, bridges, airports, ports, mass transportation systems, and power grids (2).
Gender Inequalities and Marginalization Issues
The lack of measures to address barriers women face in the infrastructure sector, such as discrimination and harassment, lack of opportunities, education, and training, can limit the country's ability to attract and retain female workers and limits the quality and diversity of perspectives in the sector.
Investment opportunities introduction
The government implemented initiatives to encourage private sector participation in the financing and construction of infrastructure, including public-private partnerships and concessions.
Key Bottlenecks introduction
Limited availability of financial resources constrain the country's ability to successfully implement projects.
Real Estate
Development Need
For 2018, the qualitative deficit is 1,073,372 homes (32.3%), and the quantitative deficit is 391,623 homes (11.8%), for a total housing deficit in absolute terms of 1,464,995 million homes. Of this total, 73% (1,075,637) corresponds to urban areas and 27% (389,358) to rural areas (3).
Policy Priority
One of the main objectives of the current government administration is to mitigate, in a sustained and sustainable manner, the housing deficit throughout the country, both qualitatively and quantitatively, at the urban, suburban, and rural levels, focusing on the production of new housing, improving the quality of existing housing and implementing a land redevelopment framework.
Gender Inequalities and Marginalization Issues
According to the 2010 National Census of Population and Housing, 80.7% of Dominican households were owned by men, while only 19.3% were owned by women. In addition, women headed 45.2% of Dominican households, suggesting that many women live in homes that are not their property. This gap is partly due to differences in income between men and women.
Investment Oopportunities introduction
1) The real estate sector is one of the fastest-growing sectors in the country, accounting for 9.5% of GDP in 2020. 2) The demand for housing is high, with a growing population and a significant housing deficit, estimated at 1.4 million units. (5)
Key Bottlenecks introduction
1) Lack of affordable housing: Despite government efforts, the supply of affordable housing remains insufficient to meet demand. 2) Economic limitations: Many people cannot afford the cost of buying a home due to high market prices and a lack of access to mortgage loans. (6)
Real Estate
Pipeline Opportunity
Affordable and resilient housing
Promote the use of sustainable and disaster-resistant materials and techniques for affordable and resilient housing. Collaborate with local architects and contractors, implement innovative project management practices, and access to financing for the beneficiaries at the base of the pyramid.
Business Case
Market Size and Environment
USD 100 million - USD 1 billion
1,464,995 households, representing 44.1% of all households (4).
Need for affordable housing: According to the Central Bank of the Dominican Republic, more than 60% of the population lives in precarious conditions and requires affordable housing. Additionally, the country has experienced a significant increase in internal and external migration, which has increased the demand for affordable housing (7).
Vulnerability to natural disasters: The Dominican Republic is located in a high-risk seismic and hurricane zone, increasing the need for resilient housing to withstand these events and protect its inhabitants (8).
Economic growth: The Dominican economy has experienced steady growth in recent years, leading to an increase in demand for affordable and quality housing (9).
Indicative Return
5% - 10%
Investment Timeframe
Medium Term (5–10 years)
Infrastructure development: The development of affordable and resilient housing projects often requires time for land acquisition, permitting, and construction. A timeframe of 5 to 10 years allows for the necessary infrastructure to be completed.
Ticket Size
> USD 10 million
Market Risks & Scale Obstacles
Capital - CapEx Intensive
Business - Supply Chain Constraints
Capital - Requires Subsidy
Impact Case
Sustainable Development Need
Increase availability of affordable housing: Approximately 1.5 million homes are needed to address the 44.1% housing deficit in the Dominican Republic (29).
Enhance resilience to natural disasters: The country experiences an average of 23 extreme weather events per year (25), underscoring the need for resilient housing to protect the population from potential impacts.
Promote sustainable financing: Developing inclusive and sustainable financing mechanisms is essential to support affordable and resilient housing projects in the country.
Gender & Marginalisation
Equal access for women: Only 26% of women in the Dominican Republic have property titles, limiting their access to affordable and resilient housing (26).
Focus on marginalized communities: Over 10% of the Dominican population lives in poverty, requiring resilient housing to protect them from disasters (27).
Economic empowerment for women: Only 40.4% of women participate in the labor force, making it crucial to empower them with access to jobs in the affordable and resilient housing construction sector (27).
Expected Development Outcome
Reduction of housing deficit: The initiative could contribute to reducing the housing deficit in the Dominican Republic, estimated at 1,464,995 households for the year 2018 (28).
Improved quality of life: With affordable and resilient housing, it is expected that the quality of life for individuals will significantly improve, benefiting approximately 10.6 million inhabitants in the country (27).
Strengthening of the economy: Investment in resilient housing could generate employment and increase economic activity in the construction sector, positively impacting the country's GDP (27).
Gender & Marginalisation
Increase in women's economic participation: The initiative could raise the current labor force participation rate of women at 40.4% (27), by providing them with employment opportunities in the construction of affordable and resilient housing.
Inclusion of vulnerable communities: It is expected to benefit over 1.5 million people in poverty (29), by providing affordable and resilient housing that promotes social inclusion and protection against disasters.
Reduction of gender gaps in property ownership: By offering equal access to housing, the aim is to decrease the disparity in property ownership, as only 26% of women currently hold property titles in the country (26).
Primary SDGs addressed
11.1.1 Proportion of urban population living in informal, informal settlements or inadequate housing
There is no information available for this indicator.
The government has set goals in its 2021-2024 multi-year plan associated with the acquisition of housing. The first seeks to increase the proportion of households headed by young people (15-35 years old) that own their own home and the second, the percentage of housing in a condition of vulnerability to natural phenomena (2).
1.4.1 Proportion of population living in households with access to basic services
In 2018, 64.40% of the population lives in households with access to basic services (18).
Secondary SDGs addressed
Directly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Public sector
Indirectly impacted stakeholders
People
Gender inequality and/or marginalization
Planet
Corporates
Outcome Risks
Risk of natural disasters: Potential unforeseen impacts of extreme weather events can affect housing resilience, with an average of 23 extreme events per year (25).
Gaps in basic infrastructure: Foreseen consequences of inequalities, as 40% of the rural population lacks access to basic services (28).
Challenges in sustainable financing: If adequate funding is not secured, the cost of housing could increase, impacting affordability for low-income individuals.
Supply chain limitations: Unforeseen disruptions in the supply chain could lead to delays and increased construction costs. Gender inequality in property ownership: Foreseen gap in access to property titles, where only 26% of women hold property titles in the country (26).
Gender inequality in property ownership: Foreseen gap in access to property titles, where only 26% of women hold property titles in the country (26).
Impact Risks
Risk of exposure to disasters: Foreseen and unforeseen consequences of extreme weather events, affecting people and housing, with an average of 23 extreme events per year (25).
Depletion of water resources: Foreseen and unforeseen, due to increased demand for water during construction, impacting natural sources (27).
Impact on ecosystems: Housing development could affect natural areas, with 25,500 ha of forests lost between 2001 and 2019 (29).
Inequality in access: marginalized groups may face barriers to access affordable and resilient housing, affecting approximately 2.6 million people in poverty (28).
Social resilience: Foreseen and unforeseen risk, as the initiative could benefit vulnerable communities but also displace populations, affecting social cohesion (29).
Impact Classification
What
Increase in affordable and resilient housing to address the deficit of 1,464,995 households (29).
Risk
Exposure to natural disasters with 23 extreme events per year (25).
Contribution
Poverty reduction benefiting over 1.5 million people (28).
Impact Thesis
Increase in affordable and resilient housing to address the housing deficit of 1,464,995 households in the Dominican Republic
Enabling Environment
Policy Environment
(Policy document): Ministry of Economy, Planning, and Development (2012). Law 1-12 National Development Strategy 2030. Santo Domingo, Dominican Republic, 2012 (10).
(Policy document): Law No. 160-21, creating the Ministry of Housing, Habitat, and Buildings (MIVHED). Official Gazette No. 11028, August 3, 2021 (11).
(Policy document): Ministry of Economy, Planning, and Development (2017): Housing deficit in the Dominican Republic: Levels, trends, and components, 2002-2017 (6).
(Policy document): Ministry of Economy, Planning, and Development (2021). National Multi-Year Public Sector Plan 2021–2024, June 30, 2021 (12).
(Policy document): National Statistics Office (2014), Dominican Republic. Housing deficit in the DOMINICAN REPUBLIC: Updated panorama of housing requirements 2010 (13).
Financial Environment
Financial incentives: Law No. 171-07 on Special Incentives for Foreign Pensioners and Rentiers, dated July 13, 2007. Resolution No. 1-2013 regulates the linking of subcategories of permanent residents (19).
Fiscal incentives: Ley No. 16-95 on Foreign Investment and its Application Regulation No. 214-04 of March 11, 2004. Decree 950-01 on Residence Permit for Investment, dated September 20, 2001 (25).
Other incentives: Law 57-07 on Incentives for the Development of Renewable Energy Sources and its Special Regimes, dated May 7, 2007, modified by Law 253-13. Application Regulation to Law 57-07, Decree 202-08 (21).
Regulatory Environment
(Regulation): Law No. 368-22 on Territorial Planning, Land Use, and Human Settlements. Establishes the National Territorial Information System. Official Gazette No. 11092 of December 22, 2022 (14).
(Regulation): Law No. 160-21, creating the Ministry of Housing, Habitat, and Buildings (MIVHED). Official Gazette No. 11028 of August 3, 2021 (15).
(Regulation): Law No. 189-11 for the Development of the Mortgage Market and Trusts in the Dominican Republic (16).
(Regulation): Single Construction Window (17).
(Regulation): Requirements for the implementation of the general regulation of buildings and processing of blueprints (18).
Marketplace Participants
Private Sector
Dominican Association of Builders and Developers of Housing and Association of Hotels and Tourism of the Dominican Republic (22)
Government
Dominican Government and Ministry of Housing, Habitat, and Buildings (MIVHED): Responsible for coordinating and implementing programs and projects related to the development of affordable and resilient housing in the country (11).
Multilaterals
Non-Profit
Public-Private Partnership
Target Locations
Cibao Norte
Cibao Sur
Cibao Nordeste
Cibao Noroeste
Valdesia
El Valle
Enriquillo
Yuma
Higuamo
Ozama
References
- (1) WEF, 2019. The Global Competitiveness Report 2019 https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf
- (2) National Multi-Year Public Sector Plan 2021-2024. Accessed march 7st, 2023: https://mepyd.gob.do/publicaciones/plan-nacional-plurianual-del-sector-publico-2021-2024/
- (3) Research "Housing Deficit in the Dominican Republic" from July 2022, conducted by the Vice Ministry of Policies and Planning for Housing and Buildings of the Ministry of Housing of the Dominican Republic: https://mived.gob.do/
- (4) Research "Housing Deficit in the Dominican Republic" from July 2022, conducted by the Vice Ministry of Policies and Planning for Housing and Buildings of the Ministry of Housing of the Dominican Republic.
- (5) Investment guide: https://prodominicana.gob.do/Documentos/Gu%C3%ADa%20de%20Inversi%C3%B3n%20RD%20en%20Espa%C3%B1ol%202022.pdf
- (6) The housing deficit in the Dominican Republic: Levels, trends and components, 2002-2017.: https://mepyd.gob.do/wp-content/uploads/drive/DCS/Adjuntos/De%CC%81ficit%20habitacional%20en%20la%20Repu%CC%81blica%20Dominicana%202002-2017%20final%20editado%20para%20imprenta-compressed.pdf
- (7) Central Bank of the Dominican Republic: https://www.bancentral.gov.do/
- (8) Vulnerability Index to Climate Shocks: https://www.undp.org/es/dominican-republic/publications/%C3%ADndice-de-vulnerabilidad-ante-choques-clim%C3%A1ticos
- (9) Dominican Republic: general overview: https://www.bancomundial.org/es/country/dominicanrepublic/overview
- (10) National Development Strategy 1-12: https://mepyd.gob.do/mepyd/wp-content/uploads/archivos/end/marco-legal/ley-estrategia-nacional-de-desarrollo.pdf
- (11) APPROVED AND SIGNED-A LAW CREATES THE MINISTRY OF HOUSING: https://invi.gob.do/documents/APROBADA%20Y%20FIRMADA-Ley%20crea%20el%20ministerio%20de%20la%20VIVIENDA%20MIVHED.pdf
- (12) National Multi-Year Public Sector Plan: https://mepyd.gob.do/wp-content/uploads/drive/DIGEDES/PLAN%20PLURIANUAL%20SECTOR%20PU%CC%81BLICO%202017-2020/PNPSP-Plan%20Nacional%20Plurianual%20del%20Sector%20Pu%CC%81blico.pdf
- (13) Oficina Nacional de Estadísticas. 2011. El déficit habitacional en República Dominicana: Panorama actualizado de los requerimientos habitacionales 2010. https://one.gob.do/media/h3zm3z3q/estudiod%C3%A9ficithabitacionalrepdompanoramarequerimientoshabitacionales2010.pdf
- (14) Law No. 368-22 of Territorial Planning, Land Use and Human Settlements. and Human Settlements. Creates the National System of Territorial Information. G. O. No. 11092 of December 22, 2022. December 22, 2022: https://biblioteca.enj.org/bitstream/handle/123456789/125404/LE368-2022.pdf?sequence=1
- (15) Law 610-20. Reglamento Orgánico y Funcional del Ministerio de la Vivienda, Hábitat y Edificaciones (MIVHED). https://mived.gob.do/wp-content/uploads/2022/04/Anteproyecto-de-decreto-Reglamento-organico-y-funcional-de-la-Ley-No-160-21.pdf
- (16) Law No. 189-11 for the Development of the Mortgage Market and Trusts in the Dominican Republic: https://dgii.gov.do/legislacion/leyesTributarias/Documents/Otras%20Leyes%20de%20Inter%C3%A9s/189-11.pdf
- (17) Ventanilla Unica de la Construcción. n.d. https://www.vuc.gob.do/home
- (18) SEOPC, 2006. Requisitos para la aplicación del reglamento general de edificaciones y tramitación de planos. https://www.mopc.gob.do/media/1955/r-021.pdf
- (19) Congreso Nacional, 2007. Ley No. 171-07. https://dgii.gov.do/legislacion/leyesTributarias/Documents/Leyes%20de%20Incentivos%20y%20Fomentos/171-07.pdf
- (20) Congreso Nacional, 2001. Ley 16-95. https://prodominicana.gob.do/wp/wp-content/themes/ceird/ceirdpdf/Ley-16-95-sobre-Inversion-Extranjera.pdf
- (21) Comisión Nacional de Energia, 2012. Ley número 57-07 Sobre Incentivo al Desarrollo de Fuentes Renovables de Energía y sus Regímenes Especiales. https://www.cne.gob.do/wp-content/uploads/2015/05/REGLAMENTO-LEY-57-07.pdf
- (22) ACOPROVI: https://acoprovi.org/ASONAHORES: https://asonahores.com/
- (23) Frequently Asked Questions Mi Vivienda: https://mivivienda.gob.do/preguntas-frecuentes/
- (24) Ministry of Housing, 2022
- (25) World Bank, 2020
- (26) CIPAF, 2021
- (27) World Bank, 2021. Dominican Republic Leveraging Competition in the Telecom Sector to Accelerate Economic Growth. https://documents1.worldbank.org/curated/en/203161623989071011/pdf/Dominican-Republic-Leveraging-Competition-in-the-Telecom-Sector-to-Accelerate-Economic-Growth.pdf
- (28) ONE, 2020. Encuesta Demanda de Recursos Humanos en la Tecnología de la Información y la Comunicación y Cooperación Empresarial Universitaria en la República Dominicana. https://www.one.gob.do/publicaciones/2020/encuesta-demanda-de-recursos-humanos-en-la-tecnologia-de-la-informacion-y-la-comunicacion-y-cooperacion-empresarial-universitaria-en-la-republica-dominicana-2019/?altTemplate=publicacionOnline
- (29) FAO, 2020