ERBE 04 1 05
Real Estate Market Dynamics in the Municipality of Oporto
FRANCISCO SOUSA MATOS 
a, ANTÓNIO PEDRO DUARTE SILVA a,b
a Católica Porto Business School, Universidade Católica Portuguesa, Porto, Portugal, b CICEE – Research Center in Economics & Business Sciences, Lisboa, Portugal.
To cite this article:
Silva, António Pedro Duarte, Francisco Sousa Matos. 2024. Real Estate Market Dynamics in the Municipality of Oporto, European Review of Business Economics IV(1): 95-114.
DOI: https://doi.org/10.26619/ERBE-2024.4.1.5
Received: 16 November 2024. Accepted: 15 January 2025. Published: 15 January 2025.
Language: English
Abstract
The housing configuration in a given area generally reflects similarities in terms of structural, location and neighborhood characteristics, indicating the formation of distinct housing sub-markets. This paper aims to identify the existence and evolution of housing sub-markets in the municipality of Oporto in 2019 and 2022. These sub-markets were identified with the help of the recent methodology of hierarchical cluster analysis with contiguity restrictions. Whereas traditional clustering techniques have long been used in market segmentation studies, those studies tend to incorporate location/neighborhood restrictions in an ad hoc form. Contiguity restricted cluster analysis addresses this issue directly. Results identified three well-defined and relatively stable sub-markets. Their delimitation, complemented by an analysis of the characteristics that define them, provides valuable information for homeowners, municipalities, lenders, and real estate investors and developers.
Keywords
Real Estate Markets; Market Segmentation; Spatially Restricted Cluster Analysis.
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