The Growth of Services Sector and Its Implications in Real State in Mexico City

Authors: Enrique Pérez-Campuzano*, Instituto de Geografía, Alejandra Garrido-Rodriguez, Alianza para la Regeneración Urbana
Topics: Economic Geography, Urban Geography, Urban and Regional Planning
Keywords: Economic Geography, Real Estate, Segregation, Economic Activities
Session Type: Paper
Day: 4/5/2019
Start / End Time: 8:00 AM / 9:40 AM
Room: Council Room, Omni, West
Presentation File: No File Uploaded

Mexico City is currently passing through important changes. First, services have gained importance. Currently, the economic basis of the city are the services; mainly, the most linked to globalization (financial, for instance). Second, due this transformation, real estate is also is changing. The most relevant case is Downtown and some zones of the city (Santa Fe, Polanco); but the influence of services in real estate is wider. In this paper, we use data from the National Directory of Economic Units to map services enterprises; thereafter overlay data from real estate. With both layers, we link the growth of the services sector with real estate prices for the whole city. Previous articles have shown the relationship between globalization and real estate (Parnreiter, 2015, 2011), but only in the downtown and the financial sector of the city. Our aportation, is link both phenomena at city scale.
The results indicate that the growth of services is a trigger of the increment of the real estate prices; but, the sectoraly, the major increase is home prices. Spatially, the major effects are localized in the second ring of the city. That is why there is a there is land use change in the intermediate city from housing to economic activities.

Abstract Information

This abstract is already part of a session. View the session here.

To access contact information login