The construction sector has both benefitted from and sustained Peru’s macroeconomic growth, as private and public building projects together have allowed the sector to experience repeated years of expansion. Though this rhythm has seen a deceleration recently, the sector continues to be an integral part of the Peruvian economy, and will be part of ongoing efforts to improve housing, develop new urban areas and engage in large-scale infrastructure projects to improve competitiveness. By The Numbers Sector…
Construction & Real Estate
From The Report: Peru 2016
View in Online Reader
Peru’s construction sector is experiencing a slight deceleration, falling from a few years of double-digit growth to more conservative figures in 2014 and 2015, following a reduction in public expenditure. Upcoming elections in 2016 and related government change can be expected to slow the rate of projects being allocated over the short term. However, a significant number of works in the pipeline will ensure activity over the coming years. As authorities gradually improve the environment for public-private partnerships, the infrastructure construction market is set to become easier to manage for Peruvian and foreign firms alike, ensuring the country remains a competitive destination for foreign direct investment. Meanwhile, although economic uncertainty weakened investment in the Real Estate sector for most of 2015, real estate development continues to offer significant opportunities. Housing demand remains high, and growth rates have encouraged the development of office, commercial and industrial real estate projects. This chapter contains an interview with Fernando Castillo, President, ICCGSA.