Logics of Valorization of Financial Capital in the Urban Land Market. Findings from the Study of Land Transactions in the Metropolitan Area of Santiago, 2010-2015

Abstract

In this paper, we characterize the capital that converges in SantiagoÍ€™s urban land market, taking in account that under the financialization processes of current economy, there has been a increasing placement of capital of financial origin, in the acquisition of land for real estate development. In order to study that process, we employ an empirical method of land transaction analysis, with a database of transactions registered in SantiagoÍ€™s Metropolitan Area for the period 2010-2015. Results show that during this period, the largest purchasers of land correspond to financial entities represented by investment companies, banks and insurance companies. The acquisitions of financial institutions exceed even the participation of all companies in the real estate sector, which reveals the importance of the logic of valorization of financial capital in the urban land market.