Recently, in a symbolic ceremony in the exclusive San Benito area, developer Calidad Inmobiliaria performed the symbolic concrete pour for Arela, the first 35-story residential tower to be built in El Salvador under the benefits of the Fiscal Incentives Law for High-Rise Buildings, enacted in October 2024.
This project, which will reach 130 meters in height and is projected for completion in 2029, marks a key milestone: just 7 months after the law came into effect, El Salvador already has a project leveraging incentives designed to boost high-impact vertical developments.
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Statements from Key Participants
Alejandro Bellegarrigue, Country Director of Calidad Inmobiliaria, emphasized during the event:
“Arela, the first 35-story tower in El Salvador, redefines urban living. With this symbolic cornerstone ceremony, we are not only launching a physical structure but also initiating a mission that will transform this space, leave a lasting legacy for the country, and demonstrate an unwavering commitment to excellence.”
He added: “With Arela, Calidad Inmobiliaria innovates El Salvador’s skyline through a 35-story tower that offers a unique lifestyle for its residents. This project reflects our commitment to building sustainable value and leaving a positive footprint in every environment we shape.”
A Model That Works
The law, which grants a 15-year income tax exemption for 35+ story projects, has proven effective in accelerating investment decisions:
- Arela is the first project to utilize these benefits.
- According to OPAMSS (Metropolitan Planning Office of San Salvador), five additional projects of similar scale are already in advanced approval stages in San Salvador and La Libertad.
Economic Impact
With a $250 million investment, Arela will include 31 residential floors (ranging from 155 m² to 255 m² duplexes), premium amenities, and 6 parking levels. According to the Ministry of Economy, such developments are projected to generate over 2,000 jobs and attract $500 million in foreign investment by 2026.
Next Steps
The launch of Arela solidifies El Salvador as a strategic destination for regional-scale investments, combining clear incentives and legal stability. As the tower begins to rise, the country advances toward its goal of developing metropolitan and coastal areas.
Coastal Development Highlight
In a related effort, President Nayib Bukele recently inaugurated a new coastal circuit called Surf City 2, further underscoring the nation’s focus on sustainable growth and infrastructure modernization.
While 35+ story buildings may seem commonplace in other cities, in El Salvador they represent a historic leap. Until 2022, the tallest skyscraper was Torre Millenium, barely surpassing Torre Pedregal (28 stories, 2010), which held the title for 12 years.
This glacial pace contrasts with current progress: after the 35+ story incentive law was passed (October 2024), projects to surpass Torre Millenium emerged within months. The law is now drastically accelerating vertical development—unthinkable just two years ago.
