The new studies presented by their authors at a Jan. 24–25 seminar at the IDB headquarters in Washington, show that in Brazil, a greater sense of insecurity lowers the value of urban properties through higher rents.
A greater sense of security can result in an increase in the average value of properties in metropolitan areas in Brazil of up to US$741, for a total increased value exceeding $13 billion calculated for all 18 million households in these areas.
This was the central finding of the study “The Impact Of Sense Of Security On Residential Real Estate Values In Brazilian Metropolitan Areas,” which was commissioned by the Institutional Capacity of the State Division of the IDB.
The study, which includes the metropolitan areas of Belém, Fortaleza, Recife, Salvador, Belo Horizonte, Curitiba, Porto Alegre, and the Federal District, shows a significant relationship between the monthly rent and the sense of security in the home.The increase in the average value of properties is explained partly by security measures adopted by families with higher incomes.
According to the study, these wealthier families tend to feel safer at home, even if their homes are preferred targets for burglaries and thefts. This finding raises a paradox: Neighborhoods with a greater sense of security are precisely those subject to the highest rates of victimization.
In Mexico, researchers said a one percent increase in the number of homicides decreases the price of a home by 1.8 percent. In Uruguay, the economic costs of violence total $1.2 billion a year, or 3.1 percent of GDP, authors found.
While the study was listed as the impact of crime and violence on Latin American and Caribbean citizens, only data for Latin America was released.
The region of Latin American and Caribbean suffers from some of the world’s highest homicide rates and 20 of the world’s most violence cities are located there.
