Rent-seeking middle classes and the short-term rental business in inner-city Lima

Mirtha Lorena del Castillo and Christien Klaufus
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Mirtha Lorena del Castillo: University of Amsterdam, the Netherlands
Christien Klaufus: University of Amsterdam, the Netherlands

Urban Studies, 2020, vol. 57, issue 12, 2547-2563

Abstract: Between 2007 and 2017, Lima experienced an unprecedented growth of the construction sector and an increase in high-rise condominiums. Urban land as a strategic resource has altered the spatial configuration of Lima’s central districts. This paper presents the results of a case study of Barranco, a central and emblematic district of Lima that underwent an intense real estate boom. In our assessment, we connect the recent touristification and gentrification debates to develop a new pattern of Latin American gentrification. We argue that Barranco’s consolidation as a tourist destination, along with the relaxation of local construction policies, has led to the development of one-bedroom apartments in high-rise condominiums destined mainly to be rented out to tourists and other types of floating population. This urban restructuring model has created new business opportunities for what we call a rent-seeking middle class, keen to invest in real estate as an alternative means to increase their income. By way of discussion, we argue that the case of Barranco exemplifies a new trend in Latin American gentrification which is not characterised by an influx of the urban middle class into central areas, nor by a massive physical displacement of lower-income residents, but by the growing purchasing power of a wealthier middle-class group investing in the short-term rental business in combination with other enabling factors.

Keywords: gentrification; Latin America; middle class; touristification; 绅士化; æ‹‰ä¸ ç¾Žæ´²; 中产阶级; 旅游化 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:57:y:2020:i:12:p:2547-2563

DOI: 10.1177/0042098019881351

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