Construction

carreteracosta

The construction sector has been one of the most dynamic in the Peruvian economy in the last 20 years, creating more employment and improving the existing infrastructure in the country. Hence, whilst the Peruvian GDP has tripled in the last two years, the construction sector has grown six fold, increasing its participation in the GDP structure from less than 5% at the beginning of the century to 7% in 2014.

construction

Housing, public infrastructure and private investment has been behind the dynamism in the Peruvian construction sector. In fact, good economic perspectives has played an important role in pushing the demand for housing, leading to the construction of housing projects in urban areas and an increasing number of mortgages for house buying. As a result, since 2008 construction has been the fastest growing sector of the economy whilst the price per square meter has doubled or even tripled in less than 10 years in most important urban areas.

Paving roads and other public infrastructure has also increased in the last ten years, contributing in this way to the construction sector outstanding performance. In the last decade, the number of kilometers of roads in the Peruvian infrastructure network has gone from 78,396 in 2004 to 165,467 in 2014; this is more than twice the number of kilometers ten years ago. Non-paved road kilometers in rural areas show the largest growth with 240% increase, followed by secondary paved-roads (220%) and National roads (204%).

For more information about the construction sector please visit the website of the Ministry of Housing and Construction or read their latest annual report here.

 

Peru: On the Road to OECD