restricted access Real Estate market, state-entrepreneurialism and urban policy in the 'gentrification by ground rent dispossession' of Santiago de Chile

This paper claims the existence of a particular form of gentrification by ground rent dispossession in Chile, a consequence of a unique mix of entrepreneurial strategies linked to large-scale urban renewal, flexible local building regulations that enlarge potential ground rents, and a form of 'institutional' redlining which limits the methods of small-scale housing upgrading in inner city areas targeted for urban renewal. As a result, the largest portion of potential ground rent produced is realized and accumulated by large-scale developers. Consequently, dilapidation spreads as many owner-occupiers – which are around 80% of Santiago's inner city low-income residents – struggle to add further exchange value to their properties. Capitalized ground rents decrease and, in the event of large-scale renewal, residents have to sell out at lowered price and find replacement accommodation in disadvantageous peripheries.