Vol. 84 (2024)
Original Articles - Urban, Land, Environmental Appraisal and Economics

Influence of a traditional flea market on property prices in its surroundings – a case study in Porto Alegre, Brazil

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  • Marco Aurelio Stumpf Gonzalez
Marco Aurelio Stumpf Gonzalez
Polytechnic School, Universidade do Vale do Rio dos Sinos, São Leopoldo
DOI: https://doi.org/10.36253/aestim-15481

Published 2024-08-04

Keywords

  • Flea market,
  • property prices,
  • hedonic models,
  • Brique da Redenção

Copyright (c) 2024 MARCO AURELIO STUMPF GONZALEZ

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

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Abstract

Flea markets are important as economic and cultural phenomenon in several cities around the world. There is little attention to their influence on real estate prices. The “Brique da Redenção” occur every weekend since 1978 in Porto Alegre, Brazil. There could be positive effects on surrounding properties. However, the positioning of this flea market implies on reduce the accessibility on weekends to properties placed in the same street and it could reduce property prices. The aim of this paper is to evaluate the influence of this flea market in residential prices. It was developed hedonic models to explore these effects, with a sample of more than 5.3 thousand apartment sales. The analysis shows a satisfactory statistical performance of the hedonic model. The study indicates that Brique’ effect is capitalized in the market prices, with an average loss on value around to 7.8% to properties placed in front to the Brique.

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