El Salvador is witnessing a surge in investor interest for high-rise real estate developments in the Metropolitan Area of San Salvador, with at least five investors exploring the possibility of building structures taller than 35 floors. This follows the approval of a new decree granting tax incentives to promote such projects, according to Luis Rodríguez, executive director of the Planning Office of the Metropolitan Area of San Salvador (OPAMSS).
Rodríguez revealed in an interview that discussions have been held with both local and foreign developers. «We have five buildings at the moment, possibly two more,» he said. «Of the five, two are foreign investments and three are local developers.»
The interest stems from the «Special provisions for the promotion and granting of tax incentives for high-rise real estate projects,» approved by the Legislative Assembly on September 23. This law offers a 15-year exemption from Income Tax for individuals, businesses, and consortia involved in new high-rise construction, whether for sale, tourism, commercial purposes, or hospitality services.
Rodríguez explained that after the decree’s approval, OPAMSS engaged with investors with substantial capital who had previously considered high-rise projects, guiding them through a comprehensive analysis of urban, traffic, and market issues. The areas of interest for these developments are located in the municipalities of San Salvador Centro and La Libertad Este.
In December, two developers had already advanced with their projects, one about to submit paperwork and the other nearing the completion of engineering studies. In January, two more investors joined the list, including Tether, a cryptocurrency company. President Bukele recently announced that Tether would be building a skyscraper in El Salvador, marking a significant step in the country’s push for high-rise developments.
Currently, the tallest building in San Salvador is the Millenium Tower, with 24 floors, while the El Pedregal Tower in La Libertad Este follows with 25 floors. These new developments signal a shift towards a more vertical skyline in the region, bolstered by the government’s incentives and growing investor confidence.