Real Estate Investment Newsletter - February 2026

Legislative Decree No. 1726 dated February 11, 2026

On February 11, 2026, Legislative Decree No. 1726 was published in the Official Gazette El Peruano, a regulation that introduces the alternative mechanism for block area clearance by incorporating Title VIII into Legislative Decree No. 1192. This latter regulation approved the Framework Law for the Acquisition and Expropriation of Real Estate, Transfer of State-owned Real Estate, Clearance of Interferences, and dictates other measures for the execution of infrastructure works.

The modifications introduced by Legislative Decree No. 1726 aim to optimize the expropriation and interference clearance procedure, with the purpose of streamlining the availability of land intended for the execution of infrastructure projects. To this end, as an alternative to the "property-by-property" acquisition scheme, the regulation incorporates the block acquisition and expropriation procedure, which consists of grouping multiple properties with similar characteristics—such as use, urban development, zoning, surroundings, or soil classification—into a continuous and closed polygonal line to manage their clearance jointly.

We will address the most relevant aspects of this regulation, such as the stages of the procedure, the identification of passive subjects and occupants, economic incentives, among others.

The stages of the block acquisition and expropriation procedure

The block acquisition and expropriation procedure consists of the following five (5) stages:

It is important to mention that the determination of block acquisition or expropriation constitutes an exclusive faculty of the Active Subject. Likewise, said entity is obligated to collect information regarding the ownership of the real estate for the preparation of the respective technical-legal diagnostic. The established deadline for sending the information requested by the Active Subject is ten (10) business days.

Regarding the identification of Passive Subjects and Occupants

Once the evaluation process of the information obtained from the respective entities is completed and the effective possession of the block of properties is verified, the Active Subject publishes the pre-census (pre-padrón) in a regional circulation newspaper and in the Official Gazette El Peruano. This document will preliminarily identify the Passive Subjects and the Occupants of the block, who may request the correction or rectification of any omission. These observations must be addressed and corrected for the subsequent approval of the definitive or official census.

It should be noted that if, during the execution of the block expropriation process, the existence of persons who should have been included in the census is noticed, they must pursue the corresponding legal actions against whoever received the payment improperly. This circumstance makes the role of the Active Subject fundamental, as it is the entity responsible for directing, verifying, and consolidating the information necessary to ensure the correct identification of the Passive Subjects of the block.

Economic incentives for the Passive Subject

With the aim of making the acquisition of the block viable via direct agreement (and, therefore, without the need to resort to the expropriation stage), the regulation also provides for various economic incentives in favor of the Passive Subject. These are as follows:

Acquisition of properties located outside the project's intervention area

In accordance with the Fifteenth Final Complementary Provision established in Legislative Decree No. 1726, the possibility of acquiring and expropriating properties that are not within the project's intervention area is regulated, provided that their removal, relocation, and/or replacement is essential for the execution of the infrastructure work or its complementary areas.

In this sense, it will be necessary for the Active Subject to reliably prove the need to carry out the acquisition process for these properties, in order to guarantee an adequate exercise of the expropriation power conferred by the respective authoritative law.

Scope of the preventive annotation regarding interferences

Provision has been made for the possibility of registering a preventive annotation in the event of interference removal, seeking to ensure that public service providers refrain from requesting, granting, and/or installing new infrastructure within the project's intervention area.