Construction & Real Estate

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 to concerns regarding project slowdown and transparency. Performance in several segments of the real estate sector improved in 2018. Government incentives and facilitation of mortgages are expected to fuel residential real estate demand. Warehousing expansion is being driven by e-commerce sales growth, and a widening middle class is attracting investment and international brands to the retail segment. Challenges like a systemic housing deficit and low mortgage penetration rates remain, but the uptick in the sector is expected to continue. This chapter contains an interview with Guido Valdivia, Executive Director, Peruvian Chamber of Construction.