Construction & Real Estate
From The Report: Peru 2018
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After two years of contraction and a slow first half of 2017, the construction sector recorded much-welcomed growth late in the year. In response to the political challenges and natural disasters of 2017, the government passed two milestone documents: an anti-corruption law and a PEN25.7bn ($7.9bn) Reconstruction Plan. Although the private segment contracted in 2017, positive results may follow from the anticipated public sector revitalisation. Overall, the construction sector is expected to be a mobilising force in 2018. The real estate sector had high expectations for 2017, with the Economic Report on Construction by the Peruvian Chamber of Construction (Cámara Peruana de la Construcción, CAPECO) predicting 6.6% growth. However, the sector ended the year with only 2.4% growth. Despite this, the real estate sector managed to perform 57% higher than other goods and services sectors. Projections for 2018 remain high, with CAPECO reporting that real estate developers have a higher than average growth projection of 80%. This chapter features interviews with Gonzalo Sarmiento Giove, CEO, Inversiones Centenario, and Carlos Neuhaus Tudela, President, XVIII Pan American Games and VI Parapan American Games of 2019.

Articles from this Chapter

Overview

Rebuilding for the future: Reconstruction of public infrastructure is bringing about positive expectations and results
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After two years of contraction and a slow first half of 2017, the construction sector recorded much-welcomed growth at the end of the year. As a response to the political challenges and natural disasters of 2017, the government passed two milestone documents that look ahead to the coming years: an anti-corruption law and the ambitious Reconstruction Plan budgeted at PEN25.7bn ($7.9bn). Although the private segment of the construction sector contracted through the end of 2017, positive results may…

Analysis

Driving growth: Increased infrastructure investment boosts materials sales
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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. When former President Pedro Pablo Kuczynski’s government took office in 2016, it pushed for an increase…

Interview

Building blocks: Gonzalo Sarmiento Giove, CEO, Inversiones Centenario, on the housing shortfall and the need for mixed-used developments
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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 tailored specifically to the middle class. In the recent past, the government programme known as Fondo…

Overview

Sustainable urbanisation: As urban populations undergo rapid growth around the globe, planners are striving to create efficient spaces – Peru 2018
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In 2008, for the first time in history, more than half of humanity was living in urban areas. Perhaps the most remarkable observation about this trend is the speed at which it has happened: as recently as 1900 urban areas accounted for 13% of the global population. Towns and cities are seen as the crucibles of opportunity for many rural dwellers. The UN estimates that by 2030 urban areas will host 60% of the world’s population – up from 54.5% in 2016 – with the pace of urban growth especially rapid across Africa and parts of Asia. Urban areas are home to more than 470m people in Africa, accounting for 40% of the continent’s population,…

Interview

Ready, set, go: Carlos Neuhaus Tudela, President, XVIII Pan American Games and VI Parapan American Games of 2019, on preparations for the next games in Lima
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Interview :Carlos Neuhaus Tudela What infrastructure is being built for the Pan American Games that will be held in Lima in 2019? CARLOS NEUHAUS TUDELA: Between September 2017 and March 2018, five major infrastructure projects for the games have been tendered and awarded: the Pan American Villa, the National Sports Villa (VIDENA), the Villa María del Triunfo Sports Complex, the Regional Sports Villa of Callao and San Marcos Stadium, and the Villa El Salvador Sports Centre. These projects…

Overview

New forms: Reducing the housing deficit through subsidisy programmes and greater access to credit
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Despite the challenging start to 2017 that included the resignation of President Pedro Pablo Kuczynski, as a result of the lingering corruption scandal linked to Brazilian company Odebrecht and the “Lava Jato” police investigation, the Peruvian government planned and began several social housing programmes and policies. As a result, housing is expected to experience a boost in 2018, with industrial and retail segments remaining active. Office investments are predicted to remain stagnant for the…