En Español Covid-19 has had a significant impact on the Latin American residential real estate market, with the economic slowdown and increased investor uncertainty serving to dampengrowth in the short term. Nevertheless, the pandemic has stimulated demand for both rental properties and accommodation with outdoor space, while also accelerating the digitalisation of the industry and boosting…
TheGRIReal Estate Club is delighted to announce the 1st Edition of ourGRIPeru. Senior investors, developers, hotels and banks will engage to discuss the country's economic outlook, perspectives of investments and development opportunities for 2019. During two days, the real estate leaders will interactively debate about important subjects to the sector, while strengthening relations…
President Martín Vizcarra Cornejo pledged renewed infrastructure investment to drive economic growth and restore investor confidence. As such, the authorities are working to increase infrastructure spending from 4.5% of GDP in 2016 to 6% by 2021, with much of the momentum originating from the National Infrastructure Plan (Plan Nacional de Infraestructura, PNI) 2016-25, which estimated the…
Interview:Guido Valdivia What are some of the challenges Peru faces in securing sufficient investment for infrastructure? GUIDO VALDIVIA: Peru operates in a difficult climate for public investment in infrastructure. In previous years the government implemented fiscal stimulus measures that allowed a significant number of infrastructure projects to start or be completed until 2018. While public…
Increased investment in infrastructure projects – such as those in mining, the $1.5bn extension of the Jorge Chavez International Airport, the increased supply of social housing and infrastructure development around the 2019 Pan American Games – are set to propel the construction sector. Investors are optimistic given the large portfolio of public projects, but authorities should be sensitive…
Construction will be the biggest driver of GDP growth in Peru in 2019, according to the Lima Chamber of Commerce, with the sector expected to grow by 6.7% over the year. Increased investment in infrastructure projects, such as those in mining and the $1.5bn extension of the Jorge Chávez International Airport in Callao, will propel expansion further. Anticipated 2019 growth would outpace that…
After a slow 2017, growth in Peru’s real estate sector picked up in 2018 due to social housing development, attractive mortgages, expansion in the warehousing and retail segments, and improvements in office space absorption rates. Investor sentiment is also picking up: according to the 2019 GRI Barometer Survey of regional real estate leaders, 69% of respondents were interested in investing…
Despite a challenging external environment, Peru’s annual average GDP growth has exceeded 5% over the last decade. However, the economy suffered in 2017 as a result of further damage inflicted by El Niño, and inflation averages approximately 3.25% per year. Economic growth began to recover in 2018, with GDP expanding by 4.1%, though this is expected to moderate to 3.7% in 2019 and 2020. While P
Interview :Gonzalo Sarmiento Giove What role can government programmes play in closing the housing gap? GONZALO SARMIENTO GIOVE: There is no doubt that Peru’s demand for housing outstrips supply, especially among the middle class. The private sector should be the engine that bridges the gap between supply and demand. However, the biggest challenge to this is the fact that mortgages are not…
In 2015 the Association for the Promotion of National Infrastructure (Asociación para el Fomento de la Infraestructura Nacional, AFIN) presented the “National Infrastructure Plan 2016-25”. Prepared for AFIN by the Universidad del Pacifico, it determined Peru would require $160bn to address existing infrastructure gaps in transport, energy, telecommunications, water and sanitation, among others.…