Peru Construction Market Report 2025

Executive summary

Resilience amid political uncertainty

The Peruvian construction market begins 2026 with a sense of cautious optimism, underpinned by continued growth in 2025 and a robust pipeline of social and transport infrastructure. Our latest survey, conducted in November 2025 with 188 professionals, suggests that the market has largely ‘priced in’ political uncertainty, as only 18% of respondents indicated they were somewhat or very concerned about the outlook for the next 12 months.

Back in late 2024, many respondents forecast an increase in tender opportunities in 2025 (60%, 3Q/4Q 2024 survey), and for the most part, that’s happened. The sector recorded its best numbers since 2021—around 3.8% growth—largely driven by public sector infrastructure works.

Importantly, 2025 also marked a shift in the enabling environment for delivery: the new public procurement framework (Ley N.° 32069 and its implementing regulations) came into effect in April 2025, reshaping how public works and services are packaged, tendered and administered. In parallel, the state strengthened two key investment channels: reforms to Works for Taxes (Obras por Impuestos) expanded scope and participation—particularly for national government entities ( Ley N.° 32460)—while a new PPP law (Ley N.° 32441) reset the framework for public–private partnerships and projects in assets, with the potential to accelerate structuring and procurement of larger programmes.

Of note is the market’s reaction to the April 2026 elections. Historically, election cycles trigger a period of investment stagnation; however, current sentiment diverges from this trend. A robust 73% of respondents indicated they intend to maintain their existing investment plans, suggesting a consensus that the imperative to close the infrastructure gap now transcends the prevailing political context.

That said, the operating environment is not without friction: the escalation in organised crime and extortion is increasingly affecting construction activity in parts of the country, with direct implications for site security, workforce safety, materials logistics and project continuity. In response, many contractors are allowing for enhanced security measures and a higher level of risk provision within preliminaries and contingency when pricing work.