The Financialization of Latin American Real Estate Markets: New Frontiers

Description

The Financialization of Latin American Real Estate Markets: New Frontiers introduces the fundamental principles of urban economics, housing, and large-scale real estate development in Latin America and equips aspiring investors and developers with the foundations for success in a unique, dynamic region. Using case studies from the Americas, this textbook provides a framework for assessing the economic, technological, social, and political forces that shape urban space, helping readers understand the aims and risks of real estate investment. Chapters on economic theory, novel financial instruments, and the regulatory environment connect real-world practice to the latest scholarly conversations in urban planning, real estate finance and development, and regional studies. Informed by the author’s extensive experience as an academic and practitioner throughout the region, this distinctive resource sheds light on the relationship between financial capital and urban form, and places Latin American cities at the center of the urban economy debate. Features Provides a thorough introduction to the mechanics of real estate markets, grounding spatial and economic theories with practical examples of the tools used to finance urban development in Latin America Centers around case studies from Mexico, Brazil, Chile, Panama, Argentina, and Colombia—some of the region’s most dynamic markets Presents financial instruments such as mortgage-backed securities, collateralized debt obligations, credit default swaps, and real estate investment trusts in a global context Examines State policies and programs for housing and infrastructure in Latin America, demonstrating regional patterns and new perspectives Covers real estate finance from housing to megaprojects, exploring recent trends in infrastructure, commercial centers, and tourism with an eye toward sustainable financing practices for the future Suitable for graduate and upper-level undergraduate students of real estate, urban planning, and Latin American studies, The Financialization of Latin American Real Estate Markets: New Frontiers also serves as essential reading for professionals in international real estate finance and development. Cover Endorsement Half Title Title Page Copyright Page Table of Contents Preface Acknowledgments Introduction 1 Financial Capital and the Restructuring of Cities The Urban Economy and the City Structure Framing the Development of Geographical Economics Revisiting Urban Spatial Economics The Location Theory Paradigm The Concentric Ring Model The Radial Sector Model The Polynuclear Model The Economics of Spatial Location and the Definition of Land Prices Conclusion: the Economic Nature of Cities 2 Theorizing the Spatial Structure of Cities Fictitious Capital and Real Estate Markets Revisiting Urban Land Rent Theories The Formation of Urban Land Prices The Three Circuits of the Spatial Economy The Upper Circuit The Intermediate Circuit The Lower Circuit Social and Institutional Frameworks Real Estate Markets in Latin America Notes 3 Financial Instruments as Tools Financial Instruments and the Location of Capital Mortgage-backed Securities (MBSs) The Impact of Collateralized Debt Obligations (CDOs) Credit Default Swaps (CDSs) Real Estate Investment Trusts (REITs) Notes 4 Financing Housing Markets Housing: Financial Markets and the State Chile and Progressive Housing Programs Mexico and Private Housing Corporations Brazil and Minha Casa, Minha Vida Program Colombia and the Production of Social Housing Schemes New Perspectives On Housing Policies in Latin America Notes 5 Financing Megaprojects in Latin America Megaprojects: Finance, Markets, and the State Puerto Madero, Buenos Aires Santa Fe, Mexico City Punta Pacífica, Panama City Porto Maravilha, Rio De Janeiro Notes 6 Financial Instruments and the City International Flows of Capital and Urban Governance Financial Instruments for Infrastructure Financial Instruments for Infrastructure: Mexico as a Case Study Development Capital Certificates (CKDs) Infrastructure and Real Estate Investment Trusts (FIBRAs) Financial Instruments for Shopping Centers Financial Instruments for Tourism Notes 7 Conclusions: Sustainable Financing Practices of Cities The Financialization of Living Environments Megaprojects: Large Investments and the State The Instrumentalization of Capital in the Urban Realm References Index