Investing in real estate: is it worth? A square meter valuation analysis in the real estate market of the Espírito Santo state

Abstract

From 2006 to 2013, the Brazilian real estate market has shown tremendous growth. However, investments in real estate have presented controversial questions about its benefits, let alone when the risk is considered (which is often disregarded by real estate investors). In this context, this study proposed to calculate the square meter appreciation of real estate located in major cities of the Espírito Santo State, between the years 2006 and 2013 (previous to the real estate crisis). The methodology used was exploratory and descriptive, with data analysis and presentation of appreciation of real estate investments in each region studied. The results sugest that only the real estate appreciation does not lead, in general, to a good investment opportunity. As opposed to the common sense, real estate prices presented not only more uncertainty than the SELIC rate, but also a poor performance in some regions. Should the years from 2014 to 2016 been considered, these results would have been even more dramatic.

Keywords

• mercado imobiliário
• valorização de imóveis
• análise de investimento