Construction in Peru - Key Trends and Opportunities to 2022

Synopsis
Following two years of contraction, Peru's construction sector rebounded in 2017, registering growth of 1.5% in real terms; this can be attributed to the government's focus on developing the mining and manufacturing sectors. In 2016, Pedro Pablo Kuczynski was elected as president of Peru, and the new government is focusing on developing the manufacturing, mining and service sectors in order to reduce dependency on mineral ore and raw material exports. 

Recovery in the country's construction industry is expected to continue over the forecast period (2018-2022), in line with the pick-up in economic growth and commodity prices.
 
Over the forecast period, the government's efforts to enhance transport, energy and residential infrastructure is expected to support industry growth. In September 2017, the government announced a plan to invest PEN28.0 billion (US$8.6 billion) on the development of housing, road, port, airport and dam infrastructure by 2020. 

In addition, work related to rebuilding flood-affected regions is expected to support investment in construction projects. In September 2017, the government announced plans to invest PEN26.1 billion (US$8.0 billion) to rebuild highways, roads, bridges, houses, schools, health centers, sewage systems and farms which were devastated by flooding in March 2017. 

The industry's output value in real terms is expected to record a compound annual growth rate (CAGR) of 4.72% over the forecast period, up from -1.16% during the review period (2013-2017).


Summary

Timetric's Construction in Peru - Key Trends and Opportunities to 2022 report provides detailed market analysis, information and insights into the Peruvian construction industry, including:

• The Peruvian construction industry's growth prospects by market, project type and construction activity

• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Peruvian construction industry

• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.


Scope

This report provides a comprehensive analysis of the construction industry in Peru. It provides:

• Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in Peru, featuring details of key growth drivers.

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline. 

• Listings of major projects, in addition to details of leading contractors and consultants


Reasons To Buy

• Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.

• Assess market growth potential at a micro-level with over 600 time-series data forecasts.

• Understand the latest industry and market trends.

• Formulate and validate strategy using Timetric's critical and actionable insight.

• Assess business risks, including cost, regulatory and competitive pressures.

• Evaluate competitive risk and success factors.

Key Highlights

• The country's residential construction market is expected to offer a positive outlook for the industry over the forecast period, as a result of population growth and subsequent need for new housing. According to the National Centre for Statistics and Information (NCSI), the total number of land plots granted for residential building construction rose by 2.9% from 26,535 in 2016 to 27,300 in 2017.

• Timetric expects energy and utilities construction market to register a forecast-period CAGR of 6.53% in nominal terms, driven by government efforts to increase renewable energy share in the country's total energy mix. In September 2017, the Financial Affairs and Energy Resources Council approved a plan to generate 10.0% of the country's total energy from renewable sources by 2025.

• In order to provide fast and reliable internet connectivity to residential and business communities in Muscat, in November 2017 the government-owned Oman Broadband Company approved the Oman Broadband Infrastructure Project. Under this, the government announced plans to invest OMR179.6 million (US$467.0 million) to develop fiber optic broadband cable.

• The need to address the growing demand for increased water supply in the country is expected to support the expansion of the water infrastructure category over the forecast period. According to the projections of Oman Power and Water Procurement Company (OPWP), demand for water resources in the country is expected to increase by over 9.5% until 2019.

• The total construction project pipeline in Oman as tracked by the Construction Intelligence Center (CIC), including all mega-projects with values above US$25 million, stands at OMR66.0 billion (US$171.7 billion). The pipeline, which includes all projects from the pre-planning to execution stages, has a healthy balance, with 56.3% of the total value in pre-execution and execution as of February 2018.