Construction & Real Estate
From The Report: Peru 2017
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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.

Articles from this Chapter

Overview

Jump start: Resuming stalled projects and increasing investment are high on the government’s list to get Peru building again
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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…

Interview

Working for change: Fernando Castillo, General Manager, ICCGSA, on Peru’s infrastructure development challenges
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Interview: Fernando Castillo What are the opportunities for private sector involvement in smaller-scale projects? FERNANDO CASTILLO: There are not too many large projects currently under development, so the key is to participate in smaller projects, especially if they are mining, education, health and infrastructure related. Given the small number of projects, competition has increased, with a number of big players trying to maintain their share in a market that has been shrinking over the last…

Analysis

Driving initiatives: The country seeks to increase road connectivity at all levels
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While roads represent 20% of Peru’s infrastructure shortage in terms of quantity, their quality is being questioned as well. Peru was ranked 110th in the quality of its road infrastructure by the World Economic Forum’s “Global Competitiveness Report 2016-17”, down from 102nd in 2014-15. Locally, the Association for the Promotion of National Infrastructure ( Asociación para el Fomento de la Infraestructura Nacional, AFIN) estimated that investments of up to $159.5m would be needed…

Overview

Diverse departments: Performance varies across segments, with residential and office space shifting to adapt to changing trends
OBG
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After a challenging year in 2015, real estate investments stayed 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 happen by the end of 2017 and throughout 2018, as housing and office are closing a cycle where vacancy increased steadily. Modest Recovery In its XI Economic Report of Construction, the Peruvian Chamber of Construction (CAPECO) shared favourable…