RELATIONSHIPS BETWEEN URBAN NETWORK CENTRALITY AND APARTMENTS PRICES IN PORTO ALEGRE, BRAZIL

Abstract

Urban locations with high centrality are associated with locational advantages, making them more desirable and expensive. There is not a consensus yet on how centrality affects real estate prices for different markets and income groups. In Brazil, this theme is relatively unexplored. This article uses an approach based on urban spatial networks, going beyond simple centrality descriptions considering the distance to the Central Business District (CBD). The objective is to analyse how apartment prices relate to two location attributes: accessibility (relative distance) and centrality (relative importance). Weighted network models are applied at two scales: city-wide and neighbourhoods. The database includes a sample of 400 offers for the sale of used apartments in 2022 and 2023 in Porto Alegre, analysed collectively and segmented into three price classes. Configurational indicators were calculated using the Graph Analysis Urban Networks (GAUS) plugin. Both configurational measures and prices were normalized using the Kernel Density Estimation (KDE) technique and correlated in a GIS environment. Results indicate that the most accessible areas of Porto Alegre have higher unit price (per square meter) apartments. Conversely, areas with higher centrality have cheaper properties, likely due to the availability of services and transportation. The more expensive apartments tend to avoid locations with higher centrality values, both globally and at the neighbourhood level.