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City Overview City Overview City: Lima Country: Peru Region: South and Central America Snapshot - Lima is the capital city of Peru and part of the Lima Metropolitan Region. The Region comprises six suburban areas, namely Lima Norte, Lima Sur, Lima Este, Residential Lima, Central Lima, and Callao, covering a total area of 2,820km2. - The total population of the Lima Metropolitan Region stood at 9.6 million in 2014, up by 1.5% from 9.5 million in 2013. The Region has a population density of 3,435 people per km2. The population is expected to grow at 1.5% annually and reach 11.3 million by 2025. - The Metropolitan Region's nominal GDP stood at PEN255.7 billion (US$90.0 billion) in 2014, accounting for 44.3% of the national GDP. The GDP per capita of the Lima Metropolitan Region reached PEN26,400 (US$9,300) in 2014. - The local economy of the Region is mainly driven by the service sector, contributing about 68.1% of the total GVA. Within the service sector, the wholesale and retail trade, transport and information, restaurants and hotels sectors accounted for 26.4% followed by government services (9.0%) and other services (31.0%). - Jorge Chávez International Airport, also known as Aeropuerto Internacional Jorge Chávez, is the major aviation hub in Peru that handles both international and domestic flights. The airport is located in Callao (a city to the west of the Lima City), about 11km from the City Centre. The airport handled 15.6 million passengers in 2014. Key Facts Population (million): 9.6 2014, Estimates Area (km2): 2,820 Population Density (people/km2): 3,435 2014, Estimates Nominal GDP (US$ billion): 90.0 2014, Estimates Int'l Arrivals (million): 3.9 2014, actual Average Hotel Rate: US$119.0 2014, actual Nominal GDP per Capita (US$): 9,300 2014, Estimates Real GDP Growth: 3.3 2014, Estimates Construction and Real Estate Investment - Construction is a key industry in the LMA. The sector accounts for around 6% to the local economy and has been growing at a rapid pace in recent years. - Construction is one of the key industry sectors in the Lima Metropolitan Region contributing 6.2% of the total regional GDP in 2014. Increases in foreign direct investments (FDIs) in the service and construction sectors are stimulating growth in the Region. The construction sector in 2014 grew by 7.6%, slower compare to 9.7% in 2013. The sector contributed PEN15.9 billion (US$5.6 billion) to the regional economy in 2014. The construction sector is expected to grow at an annual average of 7.7% over the next ten years (2015-2025) and contribute PEN36.0 billion (US$11.2 billion) to the Region's economy in 2025. - The total number of residential building permits issued in the Region during 2013 decreased to 8,211 from 10,696 in 2012. Of the total permits issued in 2013, 5,505 permits were issued for single family houses and 2,706 for multifamily houses, down from 7,482 and 3,214 permits in 2012 respectively. - The Ministry of Housing, Construction and Sanitation of Lima took up a housing development programme to benefit the poor people with housing at low prices. During 2011 and 2014, the program supplied about 248,415 housing units, benefiting low income groups in the Region. Under a government scheme, taken up by the Ministry of Housing, Construction and Sanitation of Lima, 36,229 mortgage loans worth PEN757.3 million (US$266.7 million) were given to people in 2014. - Some of the major infrastructure projects under planning as of 2015 in Lima include the Lima Metro Line 3, valued at US$6.0 billion; MTC La Molina Miraflores Road Development, valued at US$500.0 million; EMAPE Periferico Vial Norte, road construction from Lima to Callalo, valued at US$500.0 million, and SN Power Cheves Hydropower Plant valued at US$400.0 million. - The construction industry in the Region employed 352,000 people in 2014, accounting for 7.1% of the total employment. The growth of employment in the construction sector over the next 10 years (2015-2025) is set to average 2.2% annually. The construction sector is projected to employ about 436,000 people by 2025. Credit by Housing Fund Companies in Lima Region: Lima: Date Credit by housing fund companies 01 Jan, 2007 38,524 01 Jan, 2008 120,937 01 Jan, 2009 194,718 01 Jan, 2010 443,142 01 Jan, 2011 670,962 01 Jan, 2012 734,315 01 Jan, 2013 908,034 Sale of Cement in Lima Region: Lima: Date Sale of Cement 01 Jan, 2001 1,638,231 01 Jan, 2002 1,781,489 01 Jan, 2003 1,797,416 01 Jan, 2004 1,840,497 01 Jan, 2005 2,068,456 01 Jan, 2006 2,241,546 01 Jan, 2007 2,510,932 01 Jan, 2008 2,785,080 01 Jan, 2009 2,863,070 01 Jan, 2010 3,207,530 01 Jan, 2011 3,371,577 01 Jan, 2012 3,472,616 01 Jan, 2013 3,590,636 Real Estate Market - The Lima Metropolitan Area's housing market has been gradually increasing. Migration of the Peruvian rural population seeking employment in Lima is the main reason for the increasing demand in the real estate market. - According to the Global Property Guide Price Index, the average price of homes sold in the Lima Metropolitan Region grew by 7.6% in 2014 to PEN289,260 (US$90,700). The hike in prices was greater in the Region, compared to other suburban and rural areas. - The average property price in the Region for a 120m2 apartment in 2014 was US$248,880 to buy while the monthly rental stood at US$1,206, at a yield rate of 5.8% per annum. The yield rate increases for a smaller apartment (7.6% per annum for 75m2 apartment) and gradually decreases for bigger apartments (to 5.2% per annum for 200m2). - The average residential apartment price per m2 in Lima in 2014 was US$2,270, which can be compared with Bogota priced at US$2,379 per m2 in 2014. - The prime office rent in the Lima Metropolitan Region in 2014 remained constant compared to the past two years. The prime office rent in Class A locations ranged from US$22 toUS$30 per m2 per month while the rent in Class AB locations ranged from US$19 to US$27 per m2 per month, according to the Office Outlook report published by JLL. Political - The Metropolitan Municipality of Lima (Municipalidad Metropolitana de Lima) is the regional and provincial government of the Lima Metropolitan Region. It consists of the Council, the Mayor of Lima and the Metropolitan Assembly. The mayor and members of the metropolitan assembly are elected through municipal elections. - Óscar Luis Castañeda Lossio is the present Mayor of Lima for the term from January 2015 to December 2018. He was elected as the Mayor for the third non-consecutive term (first term being from January 2003 to October 2010) preceded by Susana Villarán (2011-2014). Luis Castañeda belongs to the National Solidarity Party (Partido Solidaridad Nacional) and serves as the president of the party. - The province of Lima is divided into 43 districts, each of which is headed by a district mayor. However, all these districts are in turn headed by the Mayor of Lima. The City Council consists of various departments, each managed by municipal managers. Some of the key departments include department of metropolitan municipal management, management of social communication and public relations, department of finance management and department of social development. - The province of Lima has a local budget planned for every two years and the latest budget was planned for 2014-16. The latest budget allocation in the financial year 2014 was PEN17,634 million (US$6,555 million). The main allocations made in the latest budget include 46.0% for transportation, 15.0% for education, 10.0% for health and 6.0% for farming and agriculture. Economic - The Lima Metropolitan Region's real GDP is forecast to grow at an annual average rate of 4.9% over the next decade (2015-2025). The Region, which is Peru's economic and financial hub, is home to headquarters of a number of national and international multinationals. The Region's economy is dominated by the services industries such as financial institutions, trade and telecommunications. The other key sectors of the economy include metal mechanics, textiles, chemicals, agricultural products, fertilizers, fishing pharmaceuticals, machinery, and tourism. The Region's projected real GDP growth over the next decade (2015-2025) is higher, compared to other major metropolitan regions in South America such as Santiago, Chile, which is projected to grow at an annual average of 3.2% (2015-2025) followed by Rio de Janeiro, Brazil (2.8%), and Sao Paulo, Brazil (2.6%). - Peru is one of the fastest growing economies in Latin America expanding by 5.5% in 2014. The real GDP of the Region grew by 3.3% in 2014. The nominal GDP of the Lima Metropolitan Region in 2014 stood at PEN255.7 billion (US$90.0 billion) in 2014, compared to PEN238.4 billion (US$88.2 billion) in 2013. The Region's GDP is the largest contributor to the national economy and added 44.3% of the total GDP in 2014. - Of the total regional GDP, in 2014, the service sector contributes PEN174.1 billion (US$61.3 billion), accounting for the biggest share of 68.1%, followed by the industry sector contributing PEN75.3 billion (US$26.5) or 29.5% and the agriculture sector generating PEN6.2 billion (US$2.2 billion) or 2.4% of the total GDP.
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