The financialization of housing in Brazil from PAR to Minha Case Minha Vida A supply-side account
Type
conference paper
Author(s)
Abstract (De)
The panel on financialization of housing in the Global South invites for a timely discussion on one of the key mechanisms underlying the global ripples of the American mortgage crises. In many places, real estate markets have become subject to global investment practices and given rise to economic growth and profit margins of unprecedented scales. At the same time geographies open to global flows have experienced speculative price increases, affordability gaps, and socio-economic segregation. Governments have taken different roles to enable or prevent such developments. Brazil, is an illustrative example of a government actively pursuing the access to financial capital on a national and international scale. Global financial agents, from consultancy firms to pension funds, have taken interests in the relative assured profit margins of 15 percent. This level of attraction required not only the liberation of the national economy but also putting mechanism in place that provide securities to highly mobile investment decisions.
The proposed conference paper discusses the financialization of real estate markets in the Brazilian context by deploying a historical institutional analysis of legal and regulatory changes in the country since the early 1990s. Security briefs, mortgage backed securities, secondary mortgage markets, stock market access, and other smaller changes have ultimately enabled the financialization of the real estate market that spread from the high-end market down to the market for affordable housing (My House, My Life Program). It is argued that the financialization of the housing market have considerably altered possibilities, scales, and the structure of decision making of developers that fuelled land-based speculation and large-scale projects.
The proposed conference paper discusses the financialization of real estate markets in the Brazilian context by deploying a historical institutional analysis of legal and regulatory changes in the country since the early 1990s. Security briefs, mortgage backed securities, secondary mortgage markets, stock market access, and other smaller changes have ultimately enabled the financialization of the real estate market that spread from the high-end market down to the market for affordable housing (My House, My Life Program). It is argued that the financialization of the housing market have considerably altered possibilities, scales, and the structure of decision making of developers that fuelled land-based speculation and large-scale projects.
Language
English
HSG Classification
contribution to scientific community
Event Title
RGS-IBG Annual Conference
Event Location
London.
Eprints ID
254442