Read more
The Brazilian real estate market is going through the biggest boom that has ever occurred in the world, which in turn involves a complex interaction between supply and demand agents. The main factors that have impacted the demand for real estate in the recent period are the increase in average income and the expansion of the credit market. On the supply side, it is the scarcity of "buildable land", made more difficult by environmental protection legislation, which justifies the high housing deficit. The result of these three factors, which together put upward pressure on demand and downward pressure on supply, leads to an increase in the price of residential properties throughout the country. In the specific case of Rio de Janeiro, the positive "externalities" generated by increased investments in infrastructure for the 2014 World Cup and the 2016 Olympic Games are taken into account, including the reduction of violence in certain areas with the implementation of the Pacifying Police Units (UPPs).
About the author
Thais Ferreira - PhD student in Economics from UERJ as of Mar/15 - Post graduate in Finance from Ibmec in Mar/15. Master's in Economics from UERJ in Dec/12. Graduated in Accountancy from UFF in Jul/08. Graduated in Economics from UFRJ in Dec/06.
