BCP: “One realizes the real estate bubble when it has already burst”

BCP: “One realizes the real estate bubble when it has already burst”

To stay alert. Although it was ruled out presence of a housing bubble in the country, the manager of Economic Studies of the Banco de Credito (BCP), Alonso Segura, assured that, if the current rates of growth in housing prices continue, we will inevitably fall into such a crisis.

“If the price growth speed of 20% per year continues, at some point there will be a bubble, I don’t know if in three, five or 15 years, because you will have already exceeded the equilibrium price,” he said.

Although he mentioned that housing costs are still in normal ranges, Segura warned that it is very difficult to predict a real estate crisis. “A characteristic of bubbles is that it is very difficult to anticipate them. You realize the bubble when it has already burst,” he added.

As recalled, the Central Reserve Bank closely follows real estate prices in the country, also aware of the risks of a situation of this type in Peru.

WE GROW DESPITE CRISISDespite an adverse international context and weak external demand, the peruvian economy could continue to grow close to 6.3% for 2013mainly due to strong domestic demand, calculated the BCP.

Also projected strong construction performance, a sector that would lead growth with 8.2%; and the commerce sector would expand by 6.7%.

Meanwhile, credit will also continue to rise, so it is expected to continue with growth rates close to 15%he referred.

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