At the moment the construction sector is one of the most important industries in Peru. The growing Peruvian middle class and the increase in tourism is creating a continuous growth in the Peruvian construction sector, driving economic growth. All over the country, new malls and hotels are built, and the high housing demand of the growing middle class induces the building of residential areas within Lima and other Peruvian provinces. Additionally, due to an underdeveloped Peruvian infrastructure, the government plans to attract private investments into infrastructure construction. This article will go over the growing industry and show you the resources you can make the most of to establish or set up a company in Peru!
The Peruvian Construction Sector
The construction sector, as any other sector, needs a market in order to be able to grow. Right now the Peruvian market and economy is growing steadily and therefore offers significant investment opportunities in the construction sector, both in the real estate and infrastructure sector. According to the Chamber of Commerce of Lima, the construction industry will expand by 3.7% in 2017 and according to the National Statistical Agency, the construction of office buildings and shopping malls is constantly growing.
With an annual GDP growth rate of 2.1 and an increase to 7971.00 PEN Millions of GDP from construction, it can be said that Peru’s construction sector is an important growing industry which provides great opportunities for investments.
Real Estate Construction in Peru
As mentioned above, the Peruvian real estate sector is an important and growing business sector in Peru. The capital city of Lima has a high potential for real estate construction, due to a high housing demand and higher living standards generated by the growing middle class. Besides that, the corporate area, especially the Peruvian business tourism industry, is growing, representing construction opportunities for new modern office buildings, hotels, and congress centers, in the districts such as Miraflores and San Isidro.
Outside of Lima, there is a lot of construction potential along the northern and southern coastal areas. Whereby the highest potential has been detected at the coastal areas south of Lima, offering beautiful beaches for the perfect summer vacations, including constructions of private clubs and shopping malls. Also for the middle-class summer, residential houses and vacations are more and more important. In terms of Tourism and Hotel development, the natural reserve Paracas is becoming an important destination, for nature and water sports lovers, offering tourists 325 days of sun each year, making it the perfect get away.
Peru’s Infrastructure Construction
Besides the real estate construction sector, there is high potential in the infrastructure construction sector, due to high growth rates and government development plans. The Peruvian government wants to reduce the infrastructure gap and is therefore interested in investing in private sectors.
Their approved transport infrastructure budget for 2017 is US$3.3bn. Hence, Peruvian president Pedro Pablo Kuczynski plans to boost infrastructure development through 80,000 large and small projects all over the country by involving various sectors, such as the building of schools and police stations, as well as railway, road, ports and airport network expansions throughout the whole country.
In order to improve the countries connectivity, he works together with the Peruvian Ministry of Transport and Communication and private companies who will be involved during the whole development process.
Invest in Peru’s Construction Sectors
The Peruvian construction sector remains attractive for foreign construction companies. Entering a new country is always complex and not without risks. In order to invest in Peru, you might want to consider legal risks, immigration services, due diligence services, or recruitment services to get your company set up and move your investment forward.
We have plenty of resources that highlight the different aspects of doing business in Peru that could help you learn more about the complexities when investing in the country. Take a look at our updated articles about doing business in Peru to learn much of what you need to know in order to successfully do business in the country. We have also added a presentation about forming a company in Peru at the end of this article! Check it out if you want to learn more about how to incorporate a company in Peru.
Although it can seem difficult to set up a company in Peru, with extensive preparation, knowledge, and dedication, you will be able to reap the rewards in this growing sector. Below is a recap of why you should consider investing in Peru’s construction industry so that you can maximize profits as this emerging market continues to grow!
Reasons to Invest in Peru’s Construction Industry
- Growing Construction Sector
- Continued Modernization of Infrastructure
- Governmental Interest
- Peru, a Logistic Hub
- Emerging Market
If you want to learn more about investing in Peru’s construction industry, the BizLatinHub team can help you. Our group of lawyers, accountants, and market analysts specialize in the provision of Market Entry support, Back Office Services, and Legal Services. If you are planning on forming a company in Peru or investing in this sector, or any other sector in this growing market, feel free to contact Karl at [email protected] for more information.
If you want to invest in Peru, take a look at this video about how to form a company in the country!