A. M. El Salvador’s construction sector continues its sustained growth, driven by public and private investment. According to José Velásquez, president of the Cámara Salvadoreña de la Industria de la Construcción (CASALCO), the sector contributed US$1.7 billion to GDP as of the third quarter of 2024, reflecting a 1.2% increase over the same period in 2023.
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Projections for the end of 2024 indicate that the sector will reach US$2,267.33 million, consolidating its position as a key pillar of the economy. By 2025, an 8% growth is expected, with an approximate closing of US$2,450 million, due to the high demand for housing units and high-rise projects.
The sector’s growth has been encouraged by government measures that promote real estate investment. In September 2024, the Legislative Assembly approved a decree granting tax exemptions to new high-rise construction projects, encouraging the development of buildings of 35 stories or more.
These provisions include a 15-year income tax exemption for investors and owners of new high-rise real estate developments. To access these benefits, interested parties must apply for the exemption prior to the start of construction before the Directorate General of Internal Taxes.
With these initiatives, El Salvador seeks to consolidate construction as a key economic engine, attracting investments and modernizing the country’s urban infrastructure.
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