Ideas for Building More Homes in El Salvador

Analysis is being done on the concept of a leasing and a housing trust fund to facilitate greater access to bank financing for the construction industry.

Thursday, August 4, 2016

The Salvadoran Construction Chamber believes that its financial capacity to develop more projects could be expanded through the use of trusts. Its president, Jose Antonio Velasquez, told Laprensagrafica.com that   "... at the moment banks lend to housing developers 'against their balances'. By using the concept of trust loans, the bank takes control of the project and would be able to lend more".

You may be interested in "El Salvador Reactivates Construction Projects"

The union is also preparing a bill to implement the concept of housing or real estate leasing, to promote access to housing for the lower-income segment of the population. A study by Bandesal "... concludes that the housing leasing concept is viable in the country."

"... In the case of housing leasing, reforms are needed to at least five legal bodies and four for mutual-aid housing. The dependent department of the MOP is seeking consensus before submitting any proposal for reform, although the Department of Housing and Urban Development recognized that they need to accelerate the pace so that this does not coincide with the pre-election period. Figures from ONUHabitat estimated the current housing deficit in the country at 521,000."

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More on this topic

Nicaragua: More Financing for Social Housing

September 2017

Through a trust belonging to the Nicaraguan Institute of Housing $31 million will be available to finance the purchase of social interest housing, with a fixed interest rate of 7.5%.

Like the construction sector, banks have started backing financing of social interest housing. In the first half of the year, loans granted for the purchase of this type of housing registered an increase of almost 17%, according to reports from the association of developers.

Nicaragua: More Flexibility for the Housing Market

July 2017

The construction sector proposes extending the conditions of social housing loans to a larger segment of the population, in order to promote the sale of houses with prices of between $30 thousand and $50 thousand.

The association of developers is proposing that the interest rate benefit of 2.5% and the exemption from the registration costs that are currently granted to those who purchase social housing worth up to $23 thousand, be extended to more expensive homes, worth up to $50 thousand. 

The Homes that Honduras Needs

June 2017

The housing deficit in the country is estimated at 1.2 million, with the difficulty faced by developers in obtaining financing having become one of the main obstacles.

Representatives from the association of civil engineers believe that in order to solve the problem of homelessness in the country, 45 thousand units need to be built every year for the next 20 years. Of these 45 thousand, 35 thousand will be to cover part of the existing deficit and the rest to meet the new demand that is emerging.

Boost to Popular Housing Construction

January 2012

A joint housing project between a bank and the Chamber of Construction will be carried out in Tegucigalpa, Honduras.

The president of the National Agricultural Development Bank (Banadesa), Johnny Handal, and vice president of the Honduran Chamber of Construction Industry (Chico), Oscar Calona signed off on a program for building popular housing.

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