Monday, May 04, 2009

US recession deals blow to El Salvador real estate

An article on the Global Property Guide describes how the financial crisis and its impact on Salvadorans abroad has prompted the real estate market in El Salvador to stall:

El Salvador experienced a property boom from early-2000s to mid-2008, benefitting from billions of dollars of remittances from US-based Salvadorians. But because of the US recession and credit crunch, El Salvador’s real estate market is now frozen.

Thirty per cent of construction firms’ activities have been paralyzed, due to limited bank loans for housing and other infrastructure projects, according to CASALCO (Camara Salvadoreña de la Industria de la Construccion or Salvadorian Construction Industry Chamber).(more)

2 comments:

Anonymous said...

anyone who can explain with detalis why mortgages rate in el salvador has raisen due to USA recession. please do so....lat time I checked was from 6.7% annum and now is 7.45% THAT IS CRAZY AND GREEDY......

Anonymous said...

Woo Hoo , I can finally afford a piece of beach front property !!!!

That is if the "gringo go home" signs are not up any more on the beaches .

Wait a minute , I am salvi , I forgot