El Salvador’s construction industry is on track for significant expansion, with total investment potentially reaching between $3.5 billion and $4 billion by the end of 2026, according to José Velásquez, president of the Cámara Salvadoreña de la Construcción. The projection follows an estimated $3 billion in public and private investment expected to close out 2025, signaling sustained momentum in one of the country’s most dynamic sectors.
Speaking in San Salvador, Velásquez expressed confidence in the industry’s trajectory. We estimate that last year’s investment will close at around $3 billion, and if we maintain this positive growth, we could end 2026 with $3.5 to $4 billion, he said. He added that current economic and institutional conditions support continued expansion at this pace.
The construction sector’s rapid growth has been fueled by a combination of large-scale public works and private real estate development. While official figures from the Banco Central de Reserva are still pending, industry estimates suggest that construction activity in 2025 may have grown between 25 percent and 30 percent. Such performance places the sector among the fastest-growing segments of El Salvador’s economy.
Beyond raw investment numbers, construction and real estate now represent approximately 17 percent of the country’s gross domestic product and generate at least 165,000 direct jobs. For U.S. observers and investors, these figures underscore the expanding scale of infrastructure projects and commercial development in El Salvador, particularly as government-backed initiatives continue to move forward.
Broader macroeconomic forecasts reinforce this optimistic outlook. The International Monetary Fund projected in December that El Salvador’s economy would grow by 4 percent in 2025. President Nayib Bukele has stated he expects growth above that level, strengthening expectations that sectors like construction will remain key drivers of national economic expansion through 2026.