The price of the square meter (m²) in metropolitan Lima reached, in the fourth quarter of 2023, S/7,419, just 0.5% below the previous quarter —when it recorded its highest value ever recorded: S/7,454— and 2.2% more than in the last three months of 2022, revealed the Peruvian Chamber of Construction (Capeco).
The largest increase was recorded in eastern Lima (5.0%) and northern Lima (4.0%), in a context in which sales fell 34% and 9.8%, respectively, for these areas.
In general terms, 17,000 homes were sold, 6.1% less than in 2022. In social housing, the drop was more pronounced (-72.6% in Own Roof and Mivivienda, -1.5%); the non-social, fell 6.6%.
In modern Lima – Barranco, Jesús María, La Molina, Lince, Magdalena, Miraflores, Pueblo Libre, San Borja, San Isidro, San Miguel, Surco and Surquillo – there was also a significant decline (-13.5%). The reason? According to Guido Valdivia, executive director of Capeco, due to the “administrative difficulties”, in relation to the entrapments between the communes and real estate projects of social interest.
“The relative contraction of pre-sale supply and the increase in completed homes reflected a decrease in new projects and jobs to sell,” summarized. Valdivia recalled that an unsatisfied demand for almost 143,000 homes persists in the capital.
Furthermore, regarding the housing deficit, it amounts to 1 million 200,000 at the national level.
On the other hand, he pointed out that the bulk of home sales in social interest —promoted by the State to reduce the housing deficit with maximum values that differentiate those that govern in the free real-estate market— is concentrated in modern Lima (14.4%: 2,619 homes). Lima center (1,717 homes) and Lima north (1,695) continue.
Will the m² continue to rise?
Valdivia adds that, in January of this year, the prices of steel (-5.2%), bricks (-8.9%) and tiles (-0.6%) fell in year-on-year terms. On the other hand, the value of cement and labor rose by 5%; But these factors do not determine with certainty the future of the placements.
He assured that the value per m² will adapt “to the preferences” of Peruvians, considering that ““There is a latent growing demand for increasingly smaller apartments.” Even, also taking into account those of social interest, he alleged that the benefits in the finishes would be reduced “to reach a price that can be paid by the people.”
Construction started 2024 on the right foot
- In its recent report, Capeco noted that the GDP The construction sector advanced 20.7% during January, due to the good performance of cement consumption – a key indicator – at 9.5% after 16 negative months and due to the progress of 58.5% in public works.
- Along these lines, they expect construction to show an increase of 4.0% for the current year, one percentage point higher than expected by the BCRP (3.2%) and the MEF (3.0%).
- The construction union alleges that state inefficiency is the main risk perceived by businessmen for the next 12 months.
Source: Larepublica
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