Gentrification

We explain what the gentrification of a neighborhood or city is, its causes, consequences and examples in Mexico and France.

gentrification
With gentrification, traditional residents cannot pay rent.

What is gentrification?

Gentrification It is an urban phenomenon in which a neighborhood or a city is renewed and acquires added value (increase in value) and is attractive to tourists and higher-income social sectors.

This phenomenon usually occurs in humble neighborhoods that are located near important urban centers in which the lower class neighbors who originally inhabited the area are gradually displaced. It begins with the arrival of a class with greater purchasing power, who buys real estate in the area to sell or rent it at a higher value.

This process causes an improvement in the properties, in addition to growth and commercial development that leads to displacement of humble residential areas. Regulation by authorities is key to controlling land use.

The origin of the word comes from the English neologism gentry which means “high bourgeoisie” and was used for the first time in 1964 by the Marxist sociologist Ruth Glass, to try to explain the reality of the processes of the time that were taking place in several cities in London.

The term gentry It referred in a derogatory way to the small landed nobility of England or to the people of “good society.”

See also: Urban population

Causes of gentrification

gentrification causes
Gentrification is not spontaneous but requires large investments.

Gentrification is not a spontaneous process but rather It is usually the result of speculative ventures in general, promoted by real estate groups and credit institutions. It is a phenomenon that requires large investments to carry out the purchase and rehabilitation of a large number of properties.

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Gentrification occurs due to the action of various agents, such as:

  • The purchase and sale of real estate. Financial groups buy entire buildings so that each property title enters the stock market (in which securities, shares, bonds or public debts are negotiated for the purchase and sale). This activity generates an increase in property values.
  • The new category stores. Places such as cafes, bars and shops that attract a modern and wealthy clientele are one of the main factors that lead to a change of image of the city and allow it to attract tourists or citizens with greater purchasing power.
  • The local authorities. Local legislation and negotiations between authorities and investors are essential factors to carry out this type of process. Decision-making and action by authorities must consider the best way of adaptation for all social sectors.

Consequences of gentrification

gentrification consequences
The keys to the numerous temporary rentals are delivered in lock boxes.

As a result of gentrification, the original humble population is displaced for another with greater purchasing power that can afford the high costs of real estate (both for sale and rent).

The revaluation of the land is not only due to the notable historical value that a city may have or its natural attractiveness. The factor that generates an increase in the value of real estate is the financial investment in the city, which makes it attractive due to its urban and commercial development (which generates greater demand for the sale or rental of real estate).

Gentrification occurs with an economy focused on the projection of big businesses. This process of change generates that a city with productive worker activity can become a city as a commodity per se.

This commodity city is largely nourished by tourist activity and a public with great purchasing power, attracted by the offer of services, the historical heritage, the architecture and design of the city, recreational activities, among others.

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Examples of gentrification

gentrification examples paris
Paris becomes more expensive as it becomes more attractive for tourism.

Some examples of gentrification cases are:

  • The city of Paris (France). It loses 12,000 residents every year because property values ​​have doubled in the last ten years. An aspect that stands out in this case is the appearance: the image of the city is transformed and that makes certain sectors become coveted and “instagrammable” (worthy of being photographed, published and commented on, on social networks) by tourists. .
  • The Condesa neighborhood (Mexico). It is a middle-class neighborhood that has become the epicenter of nightlife, culinary and residential life, with continuous commercial development, frequent cultural events and new transportation alternatives. Gentrification has spread to the Roma neighborhood, which is why they usually call the area the “Roma-Condesa corridor.”

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References

  • “What is the urban phenomenon known as gentrification?” in Uamerica.
  • “What is gentrification and why does it occur?” in El Diario.
  • «Gentrification» in Proyecto idis.
  • “The consequences of gentrification on urban mobility” in Ecomovilidad.
  • “They study the impacts of gentrification in Mexico” in Ciencia Mx.
  • “Bolda de Valores” in Enciclopedia.banrepcultural.org.