Resumen de Speculation, land rent, and the neoliberal city: or why free market is not enough

Felipe Encinas Pino, Carlos Aguirre Núñez, Ricardo Truffello, Rodrigo Hidalgo

• If financial speculation is the possible future profit of an action performed in the present, then the risks justify the profit margin. However, this research shows that, when it comes to urban land, the future profit depends on the plot’s location and not on what is built on it. Thus, as the location is not interchangeable, the purchase of urban land involves virtually no risks. Rather than speculation, it is actually a guaranteed business.