Enrique Zevallos, CEO of ADI Peru, said growth is not evidence in the real estate sector in Lima, if changes are not made ​​in the access to credit, municipal permits, and infrastructure management. Enrique Zevallos, General Manager of Real Estate Developers Association ( ADI Peru) said that real estate development is measured greatly through home sales, and making up the largest percentage of their development. And if they fall, thus also the real estate sector. According to a poll by support consulting, home sales fell in Lima about 25% in 2013. In this regard, Zevallos said growth is not evidence in the volume of home sales this year, if not taken into account three important pillars.

Access to credit:

Zevallos enunciated that access to credit needs modifications. So that, “no increased risk is accessible to a greater demand for housing.” A poll by support consulting said that after growing 10% throughout 2012, the number of mortgage loans disbursed by banks in Lima slightly fell between January and June 2013 at 3.3%, then shrink 17% between July and November, compared to the same period last year. This reduction was reflected by measures of SBS in demanding greater down payment as a percentage of home value, as it is not the first home buyer. Therefore there was a disincentive housing demand for investment or speculative purposes.


Municipal permits and licenses

“Currently building projects take a long time to take its course. In Peru delay 173 days, while in Colombia only 54 days, “said the manager. To Zevallos, the municipal barriers increase business costs and prevent increase housing supply, not only in areas of expansion as North Lima, but also in established areas like the Molina.

According Support, increases in major costs in the sector were not observed in the workforce or in the price of building materials, but the average price of land, grew 40% in dollars, according Capeco and the time spent on paperwork and inspections. So much so, he added, according to the report Doing Business 2014 , Peru is ranked 117th of 189 countries in ease indicator for obtaining building permits.

Lack of infrastructure

Zevallos confirmed that a latent bottleneck ‘is the poor water and sewer feasibility . He cited an example: “In districts or Bridge Stone Groove, sewerage networks are taken over, and the practicalities of water are planned on a 6-year horizon.” Another important issue is the levying of taxes. Zevallos said the state should lower the rates imposed, because it delays and weakens the supply of housing.

Finally, the manager of ADI confirmed that lower sales during 2013, could mean less housing construction this year. And indeed, the real estate development will be stalled. “The boom was over, but now we have a more refined economy,” he added.