Peru Real Estate Report 2016
BMI View: We expect to see a slower level of economic growth in Peru over the coming years than wepreviously anticipated; however growth is still set to accelerate and as a result, the real estate sector willbenefit. Growth particularly in the retail and industrial sectors will be observed as infrastructuredevelopment projects will lend support to the generation of new secondary locations. Such developmentswill also see demand shift marginally from Lima, and rental rates in secondary locations may be set to risewith demand levels. The capital will maintain its dominance upon all three real estate sub-sectors in theshort-term, but over the coming years we may witness an alleviation of pressure upon the city - somethingwhich is desperately needed should the market maintain liquidity.
Peru's economy grew at a rate of 2.8% in 2015, predominantly influenced by private consumption and pickup in infrastructure investment. Our experts believe the Peruvian economy will continue to graduallyrecover in the coming quarters; however, a weaker mining sector and a deteriorating construction sectorwill keep economic growth structurally low in the coming years. Therefore, we maintain our real GDPforecast of 3.6% in 2016, up from 2.4% in 2014, amid beneficial developments.
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