Construction and Building Materials in El Salvador
The sector in figures
| Indicator | Figure | Period |
|---|---|---|
| Real growth of construction | 24.41% | 2025 |
| Construction output, current prices | USD 3,017 million | 2025 |
| Construction growth | 13.5% | First quarter of 2026 |
| Construction growth | 11.2% | Second quarter of 2026 |
| Cement consumption | 52.9 million bags, up 27.9% | 2025 |
| Apparent cement consumption | Up 19.9% | Second quarter of 2026 |
| Credit to construction | Up 30.9% a year | June 2026 |
| Housing finance | Up 65.1% a year | June 2026 |
| Imports of construction goods | USD 1,558 million, up 32.1% | 2025 |
Source: Diario El Mundo: cement consumption grew more than 27% in the last year, Casalco, 19 May 2026; Diario El Mundo: imports of construction goods grew 32% in 2025, 6 March 2026; La Prensa Gráfica: the Salvadoran economy grew 5.06% in the second quarter of 2026, 30 September 2026; Central Reserve Bank: the Salvadoran economy grew 4.8% in the first quarter of 2026, 30 June 20261,2,5,6
Growth: from record to slowdown
Construction had the highest growth rate of any activity in 2025, and the 24.41% rise was the highest the BCR has recorded since its series began in 2005. Mining and quarrying, which supplies the raw material for cement, grew 8.74%. In the fourth quarter of 2025 alone, construction output reached USD 840.58 million at current prices. The construction chamber Casalco credited faster permit procedures and better public security for the rise in investment, and insurers reported 11% more fire policies because of new buildings.3,1
In 2026 construction again led the economy, which grew 4.8% in the first quarter and 5.1% in the second. The BCR said second-quarter growth was driven by real estate, commercial, tourism, logistics and public infrastructure projects, and that it lifted related activities: mining and quarrying, which supplies the raw material for cement, grew 7.9%, along with engineering and architecture services. The monthly index shows the pace easing, from 27.5% in January to 6.8% in August.6,5,7
Source: Diario El Mundo: economic activity grew 4.6% in August as construction slowed, 4 November 20267
Cement and other materials
Casalco counted 52.9 million bags of cement of 42.5 kilograms consumed in 2025, against 41.4 million in 2024. Consumption kept rising in early 2026: 4.29 million bags in January, 20.42% more than a year earlier. In the second quarter of 2026 apparent consumption, which adds imports to local production, was 19.9% higher than a year before.1,5
Holcim El Salvador runs two cement plants in Metapán, in Santa Ana, eight ready-mix concrete plants and one aggregates plant, and sells 95% of its output in the country. In November 2025 it announced USD 30 million over two years to raise capacity, with the plant expansion planned between 2025 and 2027.4
Much of the rest comes from abroad. Imports of construction goods rose 32.1% in 2025 and made up 8.7% of all imports. Intermediate goods such as steel, cement, tiles and finishes account for about three quarters of the total, and capital goods such as machinery for the rest.2
| Imports of construction goods | 2024 (USD million) | 2025 (USD million) | Change |
|---|---|---|---|
| Intermediate goods | 913.6 | 1,192 | +30.5% |
| Capital goods | 265 | 366 | +38.1% |
| Total | 1,178.6 | 1,558 | +32.1% |
Source: Diario El Mundo: imports of construction goods grew 32% in 2025, 6 March 20262
Contractors should allow for price and delivery risk on imported steel, equipment and finishes, and check that a supplier has stock in the country before fixing a schedule.
Who grants building permits
The Territorial Planning and Construction Directorate (DOT) is the national authority for building permits. It handles projects of 250 square metres or more and approved 816 permits in 2025. Under Legislative Decree 437, municipalities, municipal associations and local planning offices may grant permits for smaller projects. In the San Salvador metropolitan area, applications go through the planning office OPAMSS, which has its own online platform.8,10
| Project | Authority |
|---|---|
| 250 m² or more | Territorial Planning and Construction Directorate (DOT) |
| Under 250 m², outside the metropolitan area | Municipality, municipal association or local planning office |
| San Salvador metropolitan area | OPAMSS, within the limits set by law |
Source: La Prensa Gráfica: building permit requirements cut by 85%, reports the DOT, 8 September 2026; El Diario de Hoy: the permits needed to build a second floor, 21 October 20268,10
The DOT has cut the number of requirements across its procedures by 85%, from 2,262 to 336 by September 2026. It validates plans, structural calculations, site logs and technical opinions with a certified electronic signature, and its register of construction professionals had issued 9,089 cards to engineers, architects, builders and environmental specialists. A proposed law on professional responsibility would add obligations for professionals and a scale of minor, serious and very serious infractions.8,9
Steps, fees and time frames
A DOT procedure published in July 2026 for commercial building materials projects, such as showrooms and metal workshops, shows how a typical non-residential permit runs. It has three phases:9
- Feasibility: site qualification, building line and rainwater feasibility, environmental category (C1 or C2, calculated on the DOT platform from a map of the site), cultural heritage review, wastewater feasibility and road and zoning review.
- Permit: full plans in PDF and DWG, calculations, at least six site photos, fire safety certification of the plans, the environmental resolution and the building permit itself. Felling, earthworks and demolition permits are included in it.
- Compliance check: notice to the DOT at least 15 working days before work starts, fire safety certification of the building, acceptance of the works and the occupancy permit.
Source: Territorial Planning and Construction Directorate: simplified procedure for commercial building materials projects, July 2026 (PDF, in Spanish)9
| Item | Category C1 | Category C2 |
|---|---|---|
| Estimated time from filing to building permit | 30 to 60 days | 50 to 105 days |
| Environmental study | No extra documents | Technical environmental report, without a full impact study |
| Permit fee, non-residential, up to 500 m² | USD 300 | USD 300 |
| Permit fee, 501 to 50,000 m² | USD 0.50 per m² | USD 0.50 per m² |
| Validity of the permit | 2 years | 2 years |
| Extension before expiry | USD 200 per phase | USD 200 per phase |
Source: Territorial Planning and Construction Directorate: simplified procedure for commercial building materials projects, July 2026 (PDF, in Spanish)9
The DOT gives these times as estimates and says a complete and correct file from the start is the most important way to shorten them. Housing, larger or more sensitive projects may need further studies.
Outlook and what to check
The official forecast is for the economy to grow between 4.5% and 5% in 2026, with construction still the main driver. Demand is spread across housing, offices and shops, hotels, warehouses and public works, according to the BCR, and the fast growth of credit to builders and of mortgage lending points to a pipeline that continues beyond 2026. Holcim has timed its plant expansion to run until 2027.5,4
Growth is no longer accelerating. After 27.5% in January, monthly growth fell to single digits from July, and El Mundo described the August figure as a slowdown. Suppliers and contractors planning capacity should base it on the latest monthly index rather than on the 2025 rate.7
- Which authority handles the permit: the DOT for 250 m² or more, otherwise the municipality or OPAMSS.
- The environmental category of the site (C1 or C2), which changes the documents and the time frame.
- That the architect or engineer signing the plans is registered and has a certified electronic signature.
- Lead times and local stock for imported steel, machinery and finishes.
Source: La Prensa Gráfica: building permit requirements cut by 85%, reports the DOT, 8 September 2026; Territorial Planning and Construction Directorate: simplified procedure for commercial building materials projects, July 2026 (PDF, in Spanish); Diario El Mundo: imports of construction goods grew 32% in 2025, 6 March 20268,9,2
Frequently Asked Questions
How fast is construction growing in El Salvador?
Construction grew 24.41% in 2025, according to the Central Reserve Bank, the fastest of any activity. In 2026 it grew 13.5% in the first quarter and 11.2% in the second, and the monthly index slowed to 6.8% in August.
How much is construction worth?
Construction output reached USD 3,017 million at current prices in 2025, with USD 840.58 million in the fourth quarter alone. Together with engineering and architecture services, it made up 6.4% of GDP in the second quarter of 2026.
How much cement does El Salvador use?
About 52.9 million bags of 42.5 kilograms in 2025, up 27.9% on 2024, according to the construction chamber Casalco. Apparent consumption was 19.9% higher in the second quarter of 2026 than a year earlier.
Who makes cement in El Salvador?
Holcim El Salvador runs two cement plants in Metapán, eight ready-mix concrete plants and an aggregates plant, and sells 95% of its output locally. It announced USD 30 million over two years in November 2025 to raise capacity. Imports cover part of demand.
How much construction material is imported?
Imports of construction goods rose 32.1% to about USD 1,558 million in 2025, or 8.7% of all imports. Intermediate goods were USD 1,192 million and capital goods USD 366 million.
Who grants building permits in El Salvador?
The Territorial Planning and Construction Directorate (DOT) handles projects of 250 square metres or more. Municipalities and local planning offices can grant permits for smaller projects, and in the San Salvador metropolitan area applications go through OPAMSS.
How long does a building permit take and what does it cost?
For a commercial building materials project, the DOT estimates 30 to 60 days from filing to permit for category C1 and 50 to 105 days for C2. The fee for a non-residential permit is USD 300 up to 500 square metres and USD 0.50 per square metre from 501 to 50,000. The permit is valid for 2 years.
Is credit available for construction?
Yes. Credit to construction grew 30.9% in the year to June 2026 and housing finance 65.1%, according to the Central Reserve Bank.
Sources
- Diario El Mundo: cement consumption grew more than 27% in the last year, Casalco, 19 May 2026 (in Spanish)
- Diario El Mundo: imports of construction goods grew 32% in 2025, 6 March 2026 (in Spanish)
- Diario El Mundo: the Salvadoran economy grew 3.9% in 2025, driven by construction (in Spanish)
- Diario El Mundo: Holcim will invest USD 30 million over the next two years to increase capacity, 11 November 2025 (in Spanish)
- La Prensa Gráfica: the Salvadoran economy grew 5.06% in the second quarter of 2026, 30 September 2026 (in Spanish)
- Central Reserve Bank: the Salvadoran economy grew 4.8% in the first quarter of 2026, 30 June 2026 (in Spanish)
- Diario El Mundo: economic activity grew 4.6% in August as construction slowed, 4 November 2026 (in Spanish)
- La Prensa Gráfica: building permit requirements cut by 85%, reports the DOT, 8 September 2026 (in Spanish)
- Territorial Planning and Construction Directorate: simplified procedure for commercial building materials projects, July 2026 (PDF, in Spanish)
- El Diario de Hoy: the permits needed to build a second floor, 21 October 2026 (in Spanish)
Figures checked 10 November 2026. Prepared by InvestSalvador.com for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
