Construction & Real Estate

The construction sector grew 14.8% in 2012, far more than the 3% recorded in 2011, and continued to expand at a rate of 13.23% in the first half of 2013. Investor confidence remains strong, with investment in current projects rising by 5.79%, most notably in the areas of housing and infrastructure, and public-private partnerships remain the favoured model for developing public works. Likewise, in the real estate sector mortgage credit has continued to expand in recent years. By June 2013, mortgages had grown by 24.7% year-on-year to reach $27.8bn. Though the number of self-built homes has more than doubled, rapid demand is creating a growing housing deficit. A new law to strengthen regulation in the sector and reduce bureaucratic challenges for construction firms should ensure continued growth in the years to come. This chapter contains an interview with René Cornejo Díaz, Minister of Housing, Construction and Sanitation, and José Graña Miro Quesada, Chairman of Graña y Montero.