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Impact of socioeconomic characteristics in Brazilian real estate market choices: a case study in the city of Recife-PE, Brazil

Author

Listed:
  • Souza Leão
  • Fernando pontual de
  • Cristóvão de Souza Brito
  • Edgard Leonardo N. Lima

Abstract

The objective of this paper is to analyze the impact of socioeconomic characteristics of neighborhoods in Recife-PE, Brazil, that determines the preferences of real estate market developers. To achieve the proposal it was used a cluster analysis in the database of ITBI (Tax on Transfer of housing Property), gotten with a Recife City Hall. The socioeconomic characteristics of neighborhoods are included as input variables jointly with the real estate market performance indicators of each neighborhood. The result indicates that the neighborhoods with high level values of socioeconomic indicators present more efficiency to real estate investments of promoters. There is a tendency to a concentration of real estate activities in the reach places of the city, even with other places that have appropriate geomorphologic characteristics and low land prices. The study presents a real estate investment map in the city territory. The real estate market expansion doesn´t occupies these areas. This implies in great urban problems, like difficult traffic mobility and deficient urban services (water supply, sanitation system, and others).

Suggested Citation

  • Souza Leão & Fernando pontual de & Cristóvão de Souza Brito & Edgard Leonardo N. Lima, 2014. "Impact of socioeconomic characteristics in Brazilian real estate market choices: a case study in the city of Recife-PE, Brazil," ERES eres2014_3, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2014_3
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    References listed on IDEAS

    as
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    2. J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 51(2), pages 209-223.
    3. Rosenthal, Stuart S., 2008. "Old homes, externalities, and poor neighborhoods. A model of urban decline and renewal," Journal of Urban Economics, Elsevier, vol. 63(3), pages 816-840, May.
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    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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