Construction costs rise in Argentina and Dominican Republic

In Argentina, construction costs in US dollars have risen to 59% above the 15-year historical average, according to a report by Cohen. This increase coincides with weakening sector activity, including a 4.4% year-on-year decline in August and the loss of approximately 4,000 formal jobs in July. The shift in cost dynamics began in 2024, when construction costs started increasing faster than the exchange rate, reducing the capacity of available capital to finance new projects.

In the Dominican Republic, labor costs for housing construction rose by 7.1% during 2025. According to the National Statistics Office (ONE), this was the fastest-growing component within the Direct Housing Construction Cost Index (ICDV). While masonry labor saw a 7.14% increase, material costs varied by building type, with some slight decreases in single-family homes and minor increases in multi-family buildings. Other rising costs included PVC pipes, electrical generators, and subcontracted blacksmith services.