Construction sector will expand 3.7% this year, driven by large-scale public investment projects, mainly in the second half of 2017, Total Market Solutions (TMS) CEO Solon King said on Tuesday.
“The construction sector is expected to see a 3.7% growth in 2017, underpinned by major disbursements from investment projects, such as Lima Metro Line 2,” he said.
On a global basis, the sector’s performance will remain stable during the first half and turn dynamic in the second due to an upturn in infrastructure projects.
“An estimate showed the sector was going to grow 3.1% in 2016, but it will only increase by 1%; remaining unchanged, even though the highlight should be the trend, since it was negative, considering the 8% drop in 2015,” he said.
The expert explained the 2015 figure was owing to 4% fall in self-construction and 15% fall in infrastructure. He went on to add construction will be the fourth largest economic activity this year after services, mining and electricity, and water.
“The construction sector has expanded more rapidly in provinces over the past two or three years, and is capable to expand even more in inner regions,” he continued.
Housing
Likewise, King believes house prices will increase between 2% and 3%, mainly in Jesus Maria and Pueblo Libre districts, which see stronger supply and demand in terms of real estate.
“The country, mainly the socio-economic sectors C and D, will see a housing deficit in the coming years, but a consolidation is also expected in the middle class, a market niche targeted by construction firms in order to offer real estate according to the segment,” he commented.
Senior consultant at TMS Mijalou Davalos said 70% of property projects underway are medium-sized, that is, 100-150 apartments per project.
On the other hand, 25% of projects are small-sized (fewer than 100 apartments) and the remaining 5% are large-sized (more than 150 apartments).
(END) CNA/MDV/RMB/MVB
Published: 1/17/2017