El Salvador’s real estate market has been revitalized following the exception regime

The exception regime implemented by the government of President Nayib Bukele has generated results not only in the perception of citizen security, but also in the revitalization of economic activities that were affected by the presence of criminal groups.

One of the areas that has benefited the most from security actions is the real estate sector, since for many years Salvadorans could not buy or sell real estate in areas that were classified as “red” due to crime levels.

Mauricio Gutiérrez, president of the Salvadoran Chamber of Valuation (CSV), explained that, as a result of government operations, they have seen an improvement in the situation, since appraisers can now enter more places without any risk.

Before the actions of the Territorial Control Plan, gang members searched workers to look for tattoos alluding to other gangs, and some were prevented from entering.

“The situation has improved considerably. We always had that imminent risk, and there were areas that the appraisal experts did not reach for fear of the experiences that some colleagues had had, “said Gutiérrez.

For his part, Enrique Morales Choto, president of the Salvadoran Chamber of Real Estate, assured that this scenario has allowed the value of real estate to increase and has driven an increase in demand.

«Some areas that were handicapped, because they are considered dangerous areas, are now having a better value. In addition, they have higher purchase values. The purchase intention has grown, and prices have increased, “explained Morales.

According to Gutiérrez, in recent months, requests for property appraisals in areas that banks considered red have increased by up to 20%.

On the other hand, Mauricio Milla, a subdivision developer, reported that as of the second quarter of this year, his sales had increased by 5%. “Sales have been activated during the exception regime, as purchasing interest has been shown,” he said.