Hotel investments in Cusco will reach this year $ 250 million

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– During 2014 a total of 2.6 million tourists visited the city were reported

– The average price per square meter in the historic center of Cusco is between $ 1500 and $ 6000

– The increase was 60% in some areas of the city like Santa Monica

The city has filed a takeoff on the real estate map, driving prices per square meter in key areas such as its historic center between 1500 and 6000 dollars. Other areas also of importance as Santa Monica where the cost per square meter passed from 1500 to 2500 dollars.

In the city it is expected that the investment that has been developing since 2013 will be completed, and that this year should reach 250 million dollars which included 3 five Stars hotels.

What are the main areas of investment?

The narrow streets of San Blas
The narrow streets of San Blas

The historic city center brings together the most important hotels, restaurants, and entertainment places, especially in areas like San Blas, which is best known for being listed as the bohemian neighborhood of Cusco. The best views of the city can be seen from this neighborhood, characterized by high and narrow roads that are home to the most important artists and artisans in the area. The biggest real estate developments are located around this area. Therefore, there are several owners who advertise their properties for sale to investors seeking to develop new projects in the area.

Since the demand for square meters is large and can reach up to $ 6,000 and the minimum price you can get is $ 1500. Land sizes are mostly between 300 and 400 square meters, with prices around 600,000 and $ 700,000. These prices represent an alternative when buying properties abroad because they see the city as an excellent investment compared to other properties outside.

Historic Center Cusco
Perfect land for building a boutique hotel, only 2 blocks away from San Blas Square. 382m2 for $573000

Foreign funds are always looking for good destinations for their investments, especially when it comes to the hotel business, as the bet made by the Chinese tycoon Wang Jianlin to buy the Star Wanda hotel in Marbella, a city of great importance in terms of hotels, as Cusco happens to be. We must remember that Peru is a gateway to the Pacific, and therefore a direct communication with China for business and imports.

In this way, great land at good prices in Cusco has been the target of many foreign and domestic investors in order to establish there boutique hotels that welcome part of this large number of tourists who pass through the city during the year. Due to the high demand for hotel investment, are becoming less available land in the center of Cusco, however, still exist excellent options to invest.

The hotel investment has government support

The agreements that have been reached between the public and private sectors to achieve new tourism and hotel projects mainly in the region. Regional authorities as the city government and the Chamber of Commerce, along with major private institutions such as the Development Bank of Latin America (CAF) and the World Bank Group, have reduced more than 80 procedures that save investors around 2 billion in transactions.

All this to encourage investment in small, medium and large national and international entrepreneurs. This has led to increased interest of international investment groups, as it has been noted by the prestigious real estate company Panda Estates, which recommends investing in Peru because of the excellent market timing, and its expectancy to grow with future investments. And important global hotel companies have investments in other cities, and are aiming to Cusco as their next investment destination.

Already there are several real estate experts who have cataloged the situation as a new real estate boom, which is forecast to change the face of many cities. In Cusco, the city center is one of the most favored areas for its location, and is expected to continue the construction of large capacity hotels as well as boutique hotels that have between 100 and 200 rooms.

Economic strength as key for foreign investment

The currency of Peru, the Peruvian Sol, shows a sustained behavior that varies between 2.9 and 3.1 soles per dollar. It also has the confidence that is listed on the Lima stock exchange, and the variations are based on supply and demand, giving clarity in operations. Therefore, convert dollars to soles; it can be considered a safe return for those foreign entrepreneurs who wish to invest in the country.

Furthermore, not only in Cusco but throughout Peru, is expected to grow between 9 and 12% in the hotel business, this added to the good forecasts made in the Peruvian economy in which growth of 3.5% expected GDP, which will help to promote foreign investment both in Cusco and throughout the country

Tourism in the region has revived the hotel investment

Cusco has all cultural representations that exist in Peru, with thousands of festivals both religious and cultural, as well as different musical styles. However the main attraction of the city is tourism that can be performed, which can be sporty, historical or religious.

  • Its historic center is Cultural Heritage

The city center concentrates some the most precious architectural jewels of Peru, as it was designed by the Incas, so prevalent styles that come long before the colony.

Cusco
View of the colonial architecture in Cusco

The Plaza de Armas, is also known as the Plaza Huacaypata, dating from the founding of the city in the twelfth century. Around them the Incas royal palaces were built, and was the venue after the battles.

The churches of the city are also worthy of admiration, and mostly date from the 16th century, built by Spanish architects, such as the Cathedral Church of the Society of Jesus, La Merced Church and Convent, Santa Catalina, Santo Domingo, San Francisco, the Church of san Blas and the Archbishop’s Palace.

  • One of the 7 wonders of the world is in Peru: Machu Picchu

Machu Picchu
Machu Picchu

Many of these people are interested in visiting Machu Picchu. From Cusco start an adventure routes best known in America and the world, with 43 km to reach the Inca city of Machu Picchu. Around 30,000 adventurers are encouraged each year to walk this road built by the Incas themselves constitutes a paved until you reach the city that is considered Cultural Heritage and is within the New 7 Wonders of the World Highway. This explains the number of visitors it receives each year.

  • Trekking in the Andes

In the city of Cusco three mountain ranges converge, Vilcabamba, Vilcanota and Urubamba. These are commonly visited by people who want mountaineering, mostly experts, as some of the tops of these ridges are located over 6,000 meters above sea level

Major hotel brands such as Hilton, Sheraton, JW Marriott and Accord, are already interested in investing in Cusco confirming the hospitality and tourism potential of the city. For this reason, we consider it appropriate to bet on the real estate market of the city now.

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