Buying pre-construction remains one of the fastest ways to amplify returns, but 2025 has changed the game. This post gives your readers a clear, practical guide: why pre-construction can still be attractive, what’s different this year, real risks to watch, and a step-by-step checklist to invest smarter with Eskala.
Why do people still buy pre-construction
Lower upfront cash and staged payments allow buyers to secure units with smaller initial deposits.
Customization and modern specifications: buyers can choose finishes and layouts that appeal to potential tenants or buyers later.
Potential appreciation between contract and delivery if the market strengthens.
These advantages haven’t vanished, but the environment around them has shifted in 2025.
What’s different in 2025 (the facts that matter)
Construction costs are higher and more volatile. Global supply-chain issues, material price swings, and labour shortages mean builders are facing rising costs that can pressure schedules and margins.
Credit and mortgage environments remain elevated. Mortgage rates and financing costs stayed higher through 2025 compared with the pandemic era, affecting buyers’ purchasing power and developer financing costs. That changes both resale demand and developer cash flow.
Developers are delaying, cancelling, or converting projects in some markets. In several markets, condo projects have been pushed back, converted to rentals, or seen slow presales, a direct risk for presale buyers expecting quick delivery or near-term flips.
Local markets still show pockets of growth example, the Dominican Republic. In markets like the Dominican Republic, residential prices were projected to continue rising into 2025, so pre-construction can still be profitable if you pick the right location and developer.
New construction is constrained in many gateway markets. Higher cost of capital and materials is limiting new supply in some major metros, that scarcity can support prices for delivered projects if demand holds.
Top risks every investor must treat as real in 2025
Delays & cancellations: completion dates move, sometimes by a year or more; cancelled projects risk partial refunds only.
Cost escalation & developer squeezes: rising construction inputs can force design changes, quality cuts, or insolvency for weaker developers.
Financing squeeze for end buyers: if mortgage rates or lending standards tighten further, your pool of end buyers shrinks, and resale becomes harder.
Market timing risk: locking price now and selling later only works if local prices keep pace (varies by city/country).
Legal/contract traps: presale contracts often favor developers on changes, extensions, and force-majeure clauses.
Where the real opportunities are in 2025
Markets with continued demand + constrained supply. When supply is limited, and demand (tourism, local jobs, expat interest) is steady, delivered condos can command premium rents/prices.
Projects by established developers with track records. Reputation matters more than ever; experienced builders are more likely to weather cost shocks and deliver.
Projects with strong pre-sale thresholds and transparent escrow rules. These reduce the risk of cancellation and protect deposit money.
Mixed-use or tourism-linked assets in stable jurisdictions. Where tourism and foreign investment remain robust, demand for short-term rentals and buyer interest can support returns.
Practical due diligence checklist (use before signing)
Developer vetting
Years in business, completed projects, on-time delivery rate, litigation history, and bank references.
Contract red flags
How are price adjustments handled? What force-majeure language exists? What’s the refund schedule if the project is cancelled?
Presale thresholds & escrow structure
Is buyer money held in a protected trust/escrow with staged releases tied to construction milestones?
Construction & cost transparency
Ask for a materials/spec sheet and contingency plan for cost overruns.
Financing plan
How does the developer finance construction? Do they have committed lending, or are they relying on ongoing presales?
Market fundamentals
Local vacancy, rental yields, tourism flows, employment growth, and projected price appreciation. (Local data matters more than global headlines.)
Exit scenarios
Worst, base, and best cases: how will you handle a long delay or a soft resale market?
Smart deal structures and mitigation tactics
Negotiate staged deposits or larger escrow protections. More money in escrow, released on milestones, reduces buyer exposure.
Lock-in price escalation caps or index the price only to agreed, transparent inputs.
Partner with a local manager or agent (like Eskala) who does regular site inspections, monitors permits, and certifies milestones.
Consider blended strategies: buy a pre-construction unit for long-term hold and hedge with immediate rental properties for current cash flow.
The DR continued to attract tourism and foreign interest in 2025, supporting residential demand in many coastal and Santo Domingo corridors. Price projections through 2025 indicated growth in several areas, but investor outcomes depend on neighborhood, project quality, and developer reliability. If Eskala’s audience is focused on the DR, emphasize selective presales from vetted developers, transparent escrow, and projects with tourism or rental upside.
Bottom line: Is pre-construction worth it in 2025?
Yes, but only with stronger homework. The rewards (price appreciation, customization, lower initial cash) still exist, yet 2025 brings heightened risks: higher construction costs, tighter financing, and more frequent schedule changes. Your best outcomes come from buying in the right market, from the right developer, with contract protections and a clear exit/hold plan.