Commercial Real Estate - Peru | Statista Market Forecast

Peru's Commercial Real Estate market market is projected to reach a value of US$251.60bn in 2024.
According to the forecast, this market segment is expected to grow at an annual growth rate (CAGR 2024-2029) of 0.24%.
This growth will lead to a market volume of US$254.70bn by 2029.
In comparison to other countries around Worldwide, the United States is expected to generate the highest value in the Real Estate sector, with an estimated worth of US$25.3tn in 2024.
Peru's commercial real estate market is experiencing a surge in demand due to the country's strong economic growth and increasing foreign investment.

Definition:

Commercial real estate can be defined as properties that are used for business purposes, such as office buildings, retail spaces, warehouses, and industrial properties.

Additional information:

The commercial real estate market contains the value of commercial properties as a key performance indicator. This is the worth of all office buildings, retail spaces warehouses, and industrial properties for the timeline of our data coverage.

Office buildings
Retail spaces
Warehouses
Industrial properties

Residential real estate
Publicly owned buildings used by the local government
Buildings used for public health care services

The Commercial Real Estate market in Peru has been experiencing significant growth and development in recent years.

Customer preferences: Peruvian customers have shown a strong preference for commercial real estate properties that offer a combination of functionality and aesthetics. They are seeking properties that can accommodate their business needs while also providing a visually appealing environment for their employees and clients. Additionally, there is a growing demand for properties that are located in strategic areas with easy access to transportation and amenities.

Trends in the market: One of the key trends in the commercial real estate market in Peru is the increasing demand for office spaces. With the growth of the economy and the rise of various industries, businesses are expanding and requiring larger office spaces to accommodate their growing workforce. This trend is particularly evident in the major cities of Lima and Arequipa, where the concentration of businesses is highest. Another trend in the market is the rise of mixed-use developments. Developers are recognizing the value of creating integrated spaces that combine commercial, residential, and recreational components. These mixed-use developments provide a convenient and vibrant environment for both businesses and residents, offering a wide range of amenities and services in one location.

Local special circumstances: Peru's strong economic growth and political stability have contributed to the development of the commercial real estate market. The country has experienced consistent GDP growth, attracting both domestic and foreign investment. Additionally, Peru's strategic location as a gateway to South America and its membership in various trade agreements have made it an attractive destination for businesses looking to expand their operations in the region.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the commercial real estate market in Peru. These include low interest rates, favorable government policies, and increased foreign direct investment. The Peruvian government has implemented measures to promote investment in the real estate sector, such as tax incentives and streamlined bureaucratic processes. These factors have created a favorable environment for developers and investors, leading to increased construction activity and the development of new commercial properties. In conclusion, the Commercial Real Estate market in Peru is experiencing significant growth and development, driven by customer preferences for functional and aesthetically pleasing properties, increasing demand for office spaces, and the rise of mixed-use developments. The country's strong economic growth, political stability, and favorable government policies have also played a crucial role in attracting investment and driving the expansion of the market.

Data coverage:

Figures are based on value of commercial real estate.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach. As a basis for evaluating this market, we use national statistical offices. Next, we use relevant key market indicators and data from country-specific associations such as share of industry, manufacturing, and services of the GPD, price level index, GDP. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the market, for example, exponential trend smoothing.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

After a challenging period during the coronavirus pandemic, the European commercial real estate sector now faces additional pressures, including inflation, record-high interest rates, and sluggish economic growth. In 2022, these challenges were evident through contracting investment volumes in the two largest markets—the United Kingdom and Germany. Although the shifting economic landscape has impacted all commercial real estate subsectors, industrial and logistics—a property type that demonstrated incredible resilience during the pandemic—continues to be the most popular investment class. The performance of the sector is closely tied to the state of the economy, explaining why cities with flourishing capital markets garner the most interest from investors. In 2023, investors identified London, Paris, and Madrid as the three most attractive markets.

Growing demand for industrial and logistic real estate is prominent in Europe, driven by the increase in online retail sales rather than in-store. All the Nordic countries saw steady growth in their e-commerce sales during the past fifteen years and more, and the growth is expected to continue. Investments in the industrial and logistic real estate industry have generally been at a higher level during the last few years. The highest investment value among European countries in the first half of 2021 was in the United Kingdom, while Sweden topped the list among the Nordic countries, and was fifth in terms of industrial and logistics investment in real estate in Europe that year.