Construction & Real Estate

Peru Construction & Real Estate

After contracting the previous year, the construction sector is looking to grow again in 2017. Still feeling the impact of the recent downturn, the sector is only expected to register growth in the fourth quarter, following the negative effects of the coastal El Niño floods in early 2017. While causing significant damage, the floods made it necessary for the newly elected government of President Pedro Pablo Kuczynski to draft an ambitious $3bn reconstruction plan from which the construction sector will benefit in the medium to long term. The government foresees over $9bn worth of investments in the sector in the coming five years. Moreover, real estate investments remained quiet during 2016. While some dynamism was shown in the industrial and retail segments, housing and office did not show the signs of recovery that were expected. Many predict a pickup to occur by the end of 2017 and throughout 2018, as the housing and office segments are closing a cycle where vacancy increased steadily.

This chapter features an interview with Fernando Castillo, General Manager, ICCGSA.