Urban amenities and Real State Value: An Empirical Analysis for Recife City

Abstract

This study provides estimates of the amenities’ influence on the value of residential property in Recife, a city particularly marked by the presence of beaches and rivers. Therefore, a model of hedonic prices with correction for different types of spatial dependence was considered and a rich database provided by the City Hall was used, which includes information about sold properties and urban amenities. The evidence indicates that “ocean view” and proximity to the river are the most valued amenities in the city, while the value of real estate tends to be negatively affected by proximity to ZEIS, subways and violent places