Longitudinal analysis of prices of real estate rental.

Abstract

Purpose The aim of this study was to analyze the real estate market (residential and commercial) from Mariana's city Minas Gerais State. The motivation for choosing this city lies in its importance to the economy of the Minas Gerais State. Design/methodology/approach We conduct a statistical analysis adopting the longitudinal models (fixed and random effects) in 147 properties. The collection of data covered the commercial and residential real estate prices over a period of ten years. Findings The statistical modeling results showed a presence of random variations higher than the typical prices considered in the real estate market. Estimates have also suggested that commercial real estate prices are on average higher than residential ones. Research limitations/implications The analysis could cover real estate prices (residential and commercial) at different times of analysis, but due to the limited expansion of the database, we are unable to conduct more comprehensive statistical analyzes. Originality/value Until this present date, no other research of this nature has been detected, at least in the Brazilian market, which analyzed the real estate market price dynamics by the segmentation as proposed in this study. We believe that based on this work, other researchers will develop similar studies seeking to describe the dynamics of real estate market prices in others important Brazilian' cities. Such information may be relevant to more effective urban planning and delimitation of more efficient public housing policies.