SPECULATION, LAND RENT, AND THE NEOLIBERAL CITY Or why free market is not enough

Title
SPECULATION, LAND RENT, AND THE NEOLIBERAL CITY Or why free market is not enough
Author Felipe Encinas, Ricardo Truffello, Carlos Aguirre, Rodrigo Hidalgo
Line(s) Built Environment; Sociospatial Dynamics
Year of Publication 2019
Journal Title ARQ (Santiago)
Keywords speculation; city; development; process; research
Abstract If financial speculation is the possible future profit of an action performed in the present, then the risks justify the profit margin. However, this research shows that, when it comes to urban land, the future profit depends on the plot’s location and not on what is built on it. Thus, as the location is not interchangeable, the purchase of urban land involves virtually no risks. Rather than speculation, it is actually a guaranteed business.
Doi

http://dx.doi.org/10.4067/S0717-69962019000200120 

Corresponding Author Felipe Encinas felipe.encinas@uc.cl, Ricardo Truffello rtruffel@uc.cl