Contribution of legislation and the real estate sector to Gentrification and touristification of urban centers

EasyChair Preprint no. 1594

Abstract

This research addresses the role of the real estate market and foreign investments as one of the factors that contribute to the phenomenon of gentrification and touristification in Spain, directly affecting the interests of Spanish citizens and will attempt to analyze the (in) direct influence of the Spanish legislator.

The shortage of homes in large cities or the existence of empty homes that are left out of the rental market, together with the exorbitant rise in the price of them, cause the displacement of neighbors from the city center to the outskirts and preparing the ground for the appearance of new buyers, such as foreign investors, the Public Limited Investment Companies in the Real Estate Market (SOCIMIS) or the so-called “Vulture Funds” that buy entire buildings.

The study focuses on the acquisition of real estate by foreigners, whether EU citizen or not. This market is distinguished by a high heterogeneity given the location of the properties, the type of housing and the nationality of the buyers, the variation in these factors makes their study more difficult. In order to better understand the phenomenon, the world market is analyzed with a special focus on the European and Spanish markets, looking for the reasons of foreigners when making their real estate investments. The result of the analysis concludes that tourism is not the only factor that promotes phenomena of gentrification and touristification and tries to find other actors also responsible and new proposals that help in improving understanding between citizens and tourism.

Keyphrases: Foreign Investments, Gentrificación, gentrification, Inversiones extranjeras, Legislador español, real estate, sector inmobiliario, Spanish legislato, touristification, turistificación

@Booklet{EasyChair:1594,
  author = {Maliheh Mohammadzadeh Moghadam},
  title = {Contribution of legislation and the real estate sector to Gentrification and touristification of urban centers},
  howpublished = {EasyChair Preprint no. 1594},

  year = {EasyChair, 2019}}