The Hedonic House Price Model applied to the historic cities of São João del-Rei, Tiradentes and Santa Cruz de Minas, MG.

THE HEDONIC PRICE MODEL OF REAL ESTATE APPLIED TO THE HISTORIC CITIES OF SÃO JOÃO DEL-REI, TIRADENTES AND SANTA CRUZ DE MINAS – MG

Abstract

São João del Rei and Tiradentes, two of the main historic cities in the country, have among them the city of Santa Cruz de Minas, one of the largest population densities and the smallest territorial area in Brazil. Its socioeconomic and cultural characteristics are accentuated. Real estate prices are one of them. In order to analyze the behavior of prices, the Hedonic House Price Models (HPM) with spatial econometry techniques is applied in this study. The results show that the areas of real estate are the main determinant due to space limitations. On the other hand, even if the distance from the boundary of the urban area to the historic center is short, this does not prevent the values in the historic center from being much higher.