Public and private investments to drive revival in Peruvian construction in 2025

Peru's construction industry expects 2025 to be a year of recovery, driven by private construction (self-construction), a rebound in the real estate sector and the initiation of public infrastructure projects tendered in 2023 and early 2024.

Cement consumption, which accounts for more than 70% of construction GDP, is expected to grow by approximately 3.3% this year, according to a report by Scotiabank. This would be in line with the forecast expansion of overall construction GDP, which is expected to rise at a similar rate.

"This result could be explained by the improvement in various segments – especially during the first half of 2025 – such as the self-construction segment, given that we expect an increase in formal private employment – in line with the greater dynamism of private investment – and higher income that could be used to make home improvements," the report reads.

The real estate sector is projected to rebound in two key areas: high-value housing and social housing. For high-value housing, the recovery will be supported by a gradual reduction in mortgage interest rates, tied to a decline in the central bank's (BCRP) monetary policy rate. 

Social housing, on the other hand, will benefit from an increased government budget in 2025 allocated to developing such projects, according to the report.

Data from cement producers association Asocem – which includes major producers such as Unacem, Pacasmayo, and Yura – indicates that national cement shipments totaled 12Mt in 2024, a figure marginally higher (+0.01%) than in 2023. Despite concerns that the sector would close the year with a decline, the self-construction segment managed to sustain 2023 levels.

Scotiabank projects that the forecast 3.3% growth in cement shipments would bring total shipments to 12.4Mt in 2025.

Public infrastructure projects are also expected to significantly drive cement consumption throughout the year. 

Among these, line No. 2 of the Lima metro, which had reached 61.6% completion by the end of 2024, will remain a major focus. Another priority is the construction of the Vía Expresa Sur highway, a project with estimated capex of US$218mn, scheduled for delivery in 2026.

Simultaneously, other significant projects, such as the Chinchero international airport in Cusco (AICC), are expected to make steady progress. According to the transport and communications ministry (MTC), the airport is slated for delivery in the first half of 2026.