The Salvadoran construction sector is poised to invest more than $700 million in 2024, signaling continued dynamism and confidence in the country’s economic direction. The Salvadoran Chamber of Construction (Casalco) revealed that approximately 15 major construction projects are currently underway, contributing to a real estate «boom» in the country, particularly in the Metropolitan Area of San Salvador.
José Velásquez, President of Casalco, explained that the sector’s growth is fueled by an increase in private investments, particularly in projects that had been previously stalled. “There is a noticeable uptick in the investment of private projects, motivated by a new way of working and collaborating, which has encouraged companies to resume projects with an estimated value of around $700 million,» said Velásquez. «There is definitely confidence in the direction of the country.»
A key factor in this renewed confidence is the leadership of the Metropolitan Area Planning Office of San Salvador (Opamss). Velásquez noted that the agency’s new administration has provided greater transparency and cooperation, helping resolve issues that had previously delayed projects. “The new direction of the Opamss has given us greater openness to address the challenges that stalled projects. There’s still work to be done, but we’re making progress,” he added.
While Velásquez acknowledged that growth in 2024 might appear slightly slower compared to the previous year, he remains optimistic that the sector will pick up momentum as more projects are released and public investments continue. Notable initiatives include large-scale infrastructure projects spearheaded by the government, such as the Los Chorros viaduct, the modernization of the Pacific Port of Acajutla, and the development of the Pacific Airport.
In addition to these mega-projects, the construction of social interest housing has also gained momentum, with the support of the Ministry of Housing. Casalco has highlighted the importance of these initiatives in driving sector growth, with ongoing discussions between business leaders and the Ministry to encourage further investment in affordable housing.
According to Velásquez, as of early 2024, there are 113 housing projects in various stages of development, some under construction and others still in the planning phase.
With both private and public investments on the rise, the Salvadoran construction sector is well-positioned to continue its upward trajectory in 2024, contributing significantly to the country’s economic growth and development.