Abstract
IFollowing the recent changes in Brazil's real estate industry, many researches have focused on the economic and socio-spatial effects of the appearence of large, nationally-operating business groups. In discussing the economic forces behind this expansion of a small group of developers, it is common (though implicit) the understanding that the centralization of capital was delayed in this sector due to regional elites' capacity to preserve the property sector as an exclusive field for the operation of their capitals. While recognizing that the argument may be partially valid, we argue that the late development of large property business groups results, primarily, from the unique character of property as a commodity, which creates obstacles to the centralization of capital in the real estate sector. The paper is divided into three sections. Initially, we offer a few theoretical signposts around the concept of centralization of capital. Then, in the second part, we discuss the economic circumstances that differentiate the centralization of capital in the real estate sector. Finally, we consider the relevance of the concept of centralization to deal with recent changes in urban areas.
Highlights
The economic processes behind metropolitan development in Brazil have dramatically changed since the beginning of the 21st century
While recognizing that the argument may be partially valid, we argue that the late development of large property business groups results, primarily, from the unique character of property as a commodity, which creates obstacles to the centralization of capital in the real estate sector
While we recognize the partial validity of these arguments, in this paper, we intend to look into the particularities of the centralization of capital in the real estate sector
Summary
The economic processes behind metropolitan development in Brazil have dramatically changed since the beginning of the 21st century. Without neglecting the effort and capacity of the local elite to insulate their markets from external competition – as the historical dispute between regional elites within Brazil’s state administration demonstrates – we argue here that the main explanation for the fact that, until recently, the real estate sector had remained a predominantly local sector comes from technical and economic particularities that sharply distinguish this sector from the manufacturing sector These particularities explain the distinctive nature of the centralization process that followed the public listing of major developers in Brazil’s stock exchange, a process that was analyzed recently by a few scholars (SHIMBO, 2010; MARTINS, 2010; FIX, 2011; SANFELICI, 2013a)
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