Construction & Real Estate

Accounting for around 5% of GDP, the Peruvian construction sector continues to see expansion at several levels. The sector grew by 8.9% in 2013 before slowing down to 3.1% year-on-year in the first half of 2014. Activity in the construction sector is being led by the burgeoning need for housing, as well as commercial real estate, both resulting from improved living standards in Peruvian cities. As the country strives to resolve a pending housing deficit, the stable growth of the economy is prompting a new dynamism in the higher segments of the real estate market. This is supporting continued sales of new homes, as well as efforts by builders and promoters to continue to satisfy demand. As the sector matures, rising land prices encouraging a greater concentration of homes, and a lack of available space in Lima and other growing cities throughout Peru, are set to become some of the sector’s most important challenges.

This chapter contains interviews with Jesús Blanco, CEO, InGroup; Ernesto Tejeda, President, Obrainsa; and Gonzalo Sarmiento Giove, CEO, Inversiones Centenario.