From a high-altitude boom in mining infrastructure to the urban surge of residential high-rises, Peru's construction sector is building a formidable foundation for the nation's future, underscored by a robust 4.2% growth in 2023 as public investment topped PEN 25.6 billion and the industry's total contribution to GDP climbed to PEN 52.4 billion.
Key Takeaways
- In 2023, Peru's construction industry grew by 4.2% year-on-year, driven by public infrastructure investments totaling PEN 25.6 billion.
- The total market size of Peru's construction sector reached USD 18.5 billion in 2022, representing 7.1% of GDP.
- Construction output in Peru increased by 5.8% in Q4 2023 compared to Q4 2022, with residential building permits up 12%.
- Peru's construction workforce numbered 1.45 million in 2023, up 3.2% from 2022.
- Formal employment in Peru's construction sector reached 850,000 workers in Q4 2023.
- Average monthly wage in Peru's construction industry was PEN 1,850 in 2023.
- Peru's Chavimochic III irrigation project created 15,000 direct jobs in 2023.
- The Lima Metro Line 2 project advanced 22% in 2023, with 45 km tunneling completed.
- Peru invested PEN 12.3 billion in road construction, building 2,800 km in 2023.
- 28% increase in cement use for residential projects, consuming 12.5M tons in Peru 2023.
- Steel rebar prices in Peru averaged USD 650/ton in Q4 2023.
- Aggregate production reached 85 million m³ for construction in Peru 2023.
- Foreign direct investment in Peru's construction hit USD 3.2 billion in 2023.
- 42 PPP contracts awarded for infrastructure worth PEN 35 billion Peru 2023.
- Tax incentives under Ley 31110 attracted PEN 8.7B private investment 2023.
Peru's construction sector grew robustly in 2023 due to significant public and private investment.
Costs and Materials
- 28% increase in cement use for residential projects, consuming 12.5M tons in Peru 2023.
- Steel rebar prices in Peru averaged USD 650/ton in Q4 2023.
- Aggregate production reached 85 million m³ for construction in Peru 2023.
- Construction cost index in Lima rose 5.2% YoY to 185.3 points in 2023.
- Asphalt consumption totaled 1.2 million tons for road projects Peru 2023.
- Imported tiles for construction cost averaged PEN 45/m² in Peru 2023.
- Electrical copper wire usage up 7.1%, 45,000 tons in Peru construction 2023.
- Ready-mix concrete production hit 28 million m³ nationwide Peru 2023.
- PVC pipes for sanitation consumed 120,000 tons in Peru 2023 projects.
- Paint sales for construction reached 350,000 tons, up 4% in Peru 2023.
- Glass imports for buildings totaled USD 250 million in Peru 2023.
- Timber usage in construction was 2.8 million m³, mostly eucalyptus in 2023.
- Aluminum profiles prices rose 6.3% to PEN 12/kg average Peru 2023.
- 15.2 million tons cement dispatched, 62% to central region Peru 2023.
- Fuel costs for construction machinery up 8.7% YoY in Peru 2023.
- Sanitary ware production 4.2 million units for Peru market 2023.
- Recycled materials used in 12% of road base layers Peru 2023.
- Gypsum board consumption 850,000 m² in commercial builds Peru 2023.
- Waterproofing membranes applied to 5.2 million m² roofs Peru 2023.
- Iron ore for rebar production sourced 3.1M tons locally Peru 2023.
- Door and window frames cost index up 4.8% in Peru 2023.
- Solar panels installed in 1,200 construction projects Peru 2023.
- Brick production 4.5 billion units for housing Peru 2023.
- Logistics costs represented 15% of total construction expenses Peru 2023.
- HDPE pipes for irrigation used 65,000 tons Peru 2023.
- Average cost per m² for residential builds PEN 2,450 in Lima 2023.
Costs and Materials Interpretation
While Peru's construction sector is clearly booming, as evidenced by a 28% surge in residential cement and mountains of other materials being consumed, the industry is also building on a foundation of rising costs, from steel and fuel to every last door frame, proving you can't make an omelet—or a new city—without breaking a few eggs (and the bank).
Employment and Labor
- Peru's construction workforce numbered 1.45 million in 2023, up 3.2% from 2022.
- Formal employment in Peru's construction sector reached 850,000 workers in Q4 2023.
- Average monthly wage in Peru's construction industry was PEN 1,850 in 2023.
- Construction unemployment rate in Peru dropped to 5.1% in 2023 from 7.2% in 2022.
- 28% of Peru's construction workers were skilled laborers in 2023.
- Female participation in Peru's construction workforce was 12.5% in 2023.
- Training programs certified 45,000 construction workers in Peru in 2023.
- Informal employment accounted for 42% of Peru's construction jobs in 2023.
- Construction sector labor productivity grew 2.8% YoY in Peru 2023.
- 15,200 new jobs were created in Peru's public construction projects in 2023.
- Average work hours in Peru's construction industry were 48.2 per week in 2023.
- Migrant workers comprised 8.3% of Peru's construction labor force in 2023.
- Safety training covered 320,000 construction workers in Peru 2023.
- Youth employment (18-24) in construction was 22% of total in Peru 2023.
- Unionized workers in Peru's construction sector numbered 95,000 in 2023.
- Labor turnover rate in construction was 18.5% in Peru 2023.
- 65% of construction workers in Peru had secondary education or higher in 2023.
- Overtime hours in construction averaged 6.2 hours/week per worker in Peru 2023.
- Construction apprenticeships enrolled 12,500 youths in Peru 2023.
- Wage gap between skilled and unskilled construction workers was PEN 950/month in Peru 2023.
- 7,800 workplace accidents reported in Peru's construction in 2023.
- Remote region construction jobs grew 14% YoY, employing 180,000 in Peru 2023.
- Digital skills training reached 25,000 construction workers in Peru 2023.
- Construction sector absorbed 5.2% of Peru's total labor force in 2023.
- Labor shortages affected 35% of Peru's construction firms in 2023.
- Average age of construction workers in Peru was 38.4 years in 2023.
- Gender equality programs trained 8,200 women for construction roles in Peru 2023.
- Highway construction projects employed 250,000 workers across Peru in 2023.
- 4.1% growth in construction employment in Lima metro area in 2023.
Employment and Labor Interpretation
While Peru’s construction sector shows promising growth in jobs and wages, its heavy reliance on informal labor and long workweeks suggests the industry is building its future on a foundation that still needs significant structural reinforcement.
Infrastructure Projects
- Peru's Chavimochic III irrigation project created 15,000 direct jobs in 2023.
- The Lima Metro Line 2 project advanced 22% in 2023, with 45 km tunneling completed.
- Peru invested PEN 12.3 billion in road construction, building 2,800 km in 2023.
- Southern Interoceanic Highway Phase III completed 180 km in Peru by end-2023.
- 15 new hospitals constructed under SISOL health program in Peru 2023.
- Port of Chancay expansion added 1.2 million TEU capacity in 2023.
- 450 MW added to Peru's power grid via new transmission lines in 2023.
- San José water tunnel in Lima, 10 km long, completed 85% in 2023.
- 1,200 km of gas pipelines laid in Camisea extension project Peru 2023.
- 28 schools built under PRONIED program, benefiting 25,000 students in 2023.
- Olmos irrigation project irrigated 43,500 ha with 95% completion in 2023.
- Cusco airport expansion handled 4.5 million passengers post-2023 upgrades.
- 320 bridges rehabilitated nationwide in Peru's road safety program 2023.
- Mall Plaza Trujillo added 120,000 m² retail space in northern Peru 2023.
- 15,000 housing units delivered in Techo Propio program Peru 2023.
- Majes-Siguas irrigation expanded to 38,000 ha in Arequipa 2023.
- Lima's VMT ring road, 34 km, 60% complete in 2023.
- 2.1 GW renewable energy plants connected to grid in Peru 2023.
- 850 km rural electrification lines installed in Amazon region 2023.
- Paita port expansion increased container capacity by 800,000 TEU in 2023.
- 45 public markets modernized with PEN 450 million investment 2023.
- IIRSA North Corridor advanced 250 km highway in 2023 Peru.
- 12,000 m³/s concrete poured for Autopista del Sol Phase 4 in 2023.
- New Callao port terminal operational with 1.5M vehicles/year capacity 2023.
- 1,100 ha urban parks developed in Lima under green spaces plan 2023.
- Cerro Verde mine expansion added processing capacity for 1.2B lbs copper 2023.
Infrastructure Projects Interpretation
Peru's construction industry in 2023 was a symphony of hammering ambition, methodically orchestrating everything from the water in our fields and the roads under our wheels to the hospitals, schools, and energy that will build the nation's future.
Investments and Regulations
- Foreign direct investment in Peru's construction hit USD 3.2 billion in 2023.
- 42 PPP contracts awarded for infrastructure worth PEN 35 billion Peru 2023.
- Tax incentives under Ley 31110 attracted PEN 8.7B private investment 2023.
- Building permits issued totaled 112,000 nationwide Peru 2023.
- Regulatory approval time for projects averaged 180 days in Peru 2023.
- Green building certifications reached 25 projects under LEED Peru 2023.
- PEN 15.4 billion in bonds issued by construction firms Peru 2023.
- 18% VAT rebate on exports boosted construction material firms 2023.
- Municipal regulations streamlined for 5,200 small projects Peru 2023.
- Foreign investment approvals numbered 320 for construction Peru 2023.
- Sustainability reporting mandatory for firms over PEN 100M turnover 2023.
- PEN 2.1 billion in subsidies for social housing Peru 2023.
- Digital permitting platform reduced processing by 40% Peru 2023.
- Anti-corruption audits covered 650 public tenders Peru 2023.
- Labor regulation updates increased compliance costs 3.2% 2023.
- 75 investment grade projects listed on ProInversión portal 2023.
- Environmental impact assessments approved for 1,200 projects Peru 2023.
- Bank loans to construction sector totaled PEN 45.6 billion 2023.
- New seismic code implementation in 85% of urban builds Peru 2023.
- PEN 950 million in venture capital for proptech startups Peru 2023.
- Zoning law reforms enabled 15% more land for development 2023.
- Insurance penetration for projects reached 78% Peru 2023.
- Public-private partnerships delivered 28% of new infrastructure 2023.
- Tax amnesty program recovered PEN 320 million from sector 2023.
- BIM mandate for public projects over PEN 50M adopted 2023.
- 42 regional investment plans approved with PEN 22B allocation 2023.
Investments and Regulations Interpretation
Peru's construction sector is building its future with formidable financial firepower, green ambition, and digital grit, though it must carefully navigate the occasional regulatory speed bump and seismic upgrade.
Market Size and Growth
- In 2023, Peru's construction industry grew by 4.2% year-on-year, driven by public infrastructure investments totaling PEN 25.6 billion.
- The total market size of Peru's construction sector reached USD 18.5 billion in 2022, representing 7.1% of GDP.
- Construction output in Peru increased by 5.8% in Q4 2023 compared to Q4 2022, with residential building permits up 12%.
- Peru's construction industry is projected to grow at a CAGR of 3.9% from 2024 to 2028, reaching USD 22.1 billion by 2028.
- In 2022, non-residential construction accounted for 55% of total sector activity in Peru, valued at PEN 38.2 billion.
- Peru's construction GDP contribution rose from 6.2% in 2021 to 6.8% in 2023.
- Heavy construction segment in Peru expanded by 7.3% in 2023, fueled by mining infrastructure projects.
- Total construction contracts awarded in Peru in 2023 amounted to PEN 42.1 billion.
- Peru's civil engineering construction subsector grew 6.1% YoY in 2023.
- The residential construction market in Peru was valued at USD 7.2 billion in 2023.
- Peru's construction industry added PEN 52.4 billion to GDP in 2023.
- Infrastructure construction in Peru grew 8.4% in 2023, representing 32% of total sector growth.
- Peru's construction sector inflation rate was 4.7% in 2023.
- Total floor area constructed in Peru reached 15.2 million m² in 2023.
- Commercial construction in Peru increased by 3.9% YoY in Q1 2024.
- Peru's construction industry employment multiplier effect contributed to 1.2 million indirect jobs in 2023.
- The sector's value chain in Peru generated PEN 120 billion in economic activity in 2022.
- Peru's construction productivity index rose 2.1% in 2023.
- Water and sanitation construction projects boosted sector growth by 9.2% in Peru 2023.
- Peru's industrial construction output grew 4.5% YoY in 2023.
- Total investment in Peru's construction reached 8.3% of GDP in 2023.
- Lima region's construction activity accounted for 62% of national total in 2023.
- Peru's construction backlog stood at PEN 150 billion in early 2024.
- Energy infrastructure construction grew 11.2% in Peru 2023.
- Peru's construction sector recovery post-COVID reached 95% of pre-pandemic levels by 2023.
- Public construction spending in Peru was PEN 28.7 billion in 2023.
- Private construction investment grew 5.1% YoY in Peru 2023.
- Peru's construction material production index increased 3.6% in 2023.
- Total construction firms in Peru numbered 45,200 in 2023.
- Sector's export-related construction grew 6.7% in Peru 2023.
Market Size and Growth Interpretation
The Peruvian construction sector, a respectable 7% of GDP and growing, is laying a solid foundation for the future, quite literally, with public money fueling heavy infrastructure while private optimism builds from the ground up.
Sources & References
- Reference 1CAPECOcapeco.org.peVisit source
- Reference 2STATISTAstatista.comVisit source
- Reference 3INEIinei.gob.peVisit source
- Reference 4GLOBALDATAglobaldata.comVisit source
- Reference 5BCRPbcrp.gob.peVisit source
- Reference 6DATOSMACROdatosmacro.expansion.comVisit source
- Reference 7OXFORDECONOMICSoxfordeconomics.comVisit source
- Reference 8MORDORINTELLIGENCEmordorintelligence.comVisit source
- Reference 9PROINVERSIONproinversion.gob.peVisit source
- Reference 10ANAana.gob.peVisit source
- Reference 11MEFmef.gob.peVisit source
- Reference 12MUNILIMmunilim.gob.peVisit source
- Reference 13OSINERGMINosinergmin.gob.peVisit source
- Reference 14WORLDBANKworldbank.orgVisit source
- Reference 15PRODUCEproduce.gob.peVisit source
- Reference 16SUNATsunat.gob.peVisit source
- Reference 17COMEXPERUcomexperu.org.peVisit source
- Reference 18MTPEmtpe.gob.peVisit source
- Reference 19SENCICOsencico.gob.peVisit source
- Reference 20SUNAFILsunafil.gob.peVisit source
- Reference 21MTCmtc.gob.peVisit source
- Reference 22PROTRANSPORTEprotransporte.gob.peVisit source
- Reference 23MINSAminsa.gob.peVisit source
- Reference 24ENAPUERTOCHANCAYenapuertochancay.com.peVisit source
- Reference 25SEDAPALsedapal.com.peVisit source
- Reference 26PERUPETROperupetro.com.peVisit source
- Reference 27PRONIEDpronied.gob.peVisit source
- Reference 28PROVIASprovias.gob.peVisit source
- Reference 29MALLPLAZAmallplaza.com.peVisit source
- Reference 30MIVIVIENDAmivivienda.com.peVisit source
- Reference 31AUTORIDADMAJESSIGUASautoridadmajessiguas.gob.peVisit source
- Reference 32EMAPEemape.gob.peVisit source
- Reference 33MINEMminem.gob.peVisit source
- Reference 34MEMmem.gob.peVisit source
- Reference 35ENAPUenapu.com.peVisit source
- Reference 36MUNLIMAmunlima.gob.peVisit source
- Reference 37PROVIAprovia.gob.peVisit source
- Reference 38SERPARserpar.gob.peVisit source
- Reference 39CERROVERDEcerroverde.com.peVisit source
- Reference 40ACERO-PERUacero-peru.comVisit source
- Reference 41ASPECaspec.org.peVisit source
- Reference 42MINAMminam.gob.peVisit source
- Reference 43ALUMINIO-PERUaluminio-peru.comVisit source
- Reference 44CEMENTOS-PACASMAYOcementos-pacasmayo.com.peVisit source
- Reference 45GYPSUM-PERUgypsum-peru.comVisit source
- Reference 46SIDERPERUsiderperu.com.peVisit source
- Reference 47LADRILLOS-PERUladrillos-peru.orgVisit source
- Reference 48BVLbvl.com.peVisit source
- Reference 49GOBgob.peVisit source
- Reference 50OSCEosce.gob.peVisit source
- Reference 51SBSsbs.gob.peVisit source
- Reference 52INDECIindeci.gob.peVisit source
- Reference 53VIVIENDAvivienda.gob.peVisit source