Financing and the Real Estate Market After REURB: Impacts on Credit and Asset Appreciation

One of the most immediate and transformative effects of Urban Land Regularization (REURB) is the inclusion of properties in the formal market.

The issuance of the Urban Land Regularization Certificate (CRF) and the opening of individualized registrations (matrículas) at the Land Registry Office give the property full legal guarantee, allowing access to credit, financing, and fiduciary transfer operations.

This article analyzes how REURB directly impacts the real estate market, the effects on residents’ lives, and how this regularization drives the local economy.

1. The Irregular Property and Barriers to Credit

While irregular, the property faces severe restrictions:

·         It cannot be used as collateral for bank financing;

·         It is not accepted in fiduciary transfers;

·         It cannot be subject to extrajudicial foreclosure in debt collection;

·         Its market value is reduced, since buyers distrust legal uncertainty.

Practical example: An apartment in a building without a habite-se (occupancy permit) and without an individualized registration may be worth up to 40% less on the market.

2. The Property Regularized by REURB

Once REURB is completed:

·         The property receives an individualized registration;

·         It can be offered as mortgage or fiduciary collateral;

·         It becomes eligible for real estate financing by Caixa, Banco do Brasil, Itaú, Bradesco, Santander, and other institutions;

·         Market liquidity increases, turning the asset into a fully tradable property.

Practical example: A condominium in Alphaville, after REURB, had its units financed by Caixa, expanding the pool of interested buyers.

3. Economic Effects for Property Owners

3.1 Asset appreciation

Regularization can significantly increase property value. Studies indicate an average appreciation of 20% to 50% after titling.

3.2 Access to credit

With the property registered, the owner can:

·         Contract loans secured by the property;

·         Refinance their unit (home equity);

·         Obtain business credit using the property as collateral.

3.3 Succession security

Regularized properties are transferred formally through inheritance, avoiding family disputes.

4. Economic Effects for the Market and the Municipality

4.1 Increased real estate transactions

More regularized properties mean:

·         Higher volume of purchase and sale transactions;

·         More deeds and registrations;

·         Growth in the brokerage and construction sectors.

4.2 Tax revenue

With registered properties:

·         Municipalities collect more IPTU (urban property tax);

·         States collect more ITCMD (inheritance tax) and ITBI (property transfer tax).

4.3 Expansion of the local economy

Asset appreciation increases consumption and stimulates new investments in regularized regions.

5. The Strategic Role of REURB in High-Value Areas

In regions such as Alphaville, REURB goes beyond guaranteeing the right to housing. It is a strategic asset tool:

·         Makes buildings and condominiums fully compliant with City Hall, Land Registry, and the Union’s SPU (Secretariat for Federal Heritage) in cases of foro/marinha lands;

·         Increases the value of million-dollar assets, making them eligible for formal market transactions;

·         Eliminates risks of nullity in high-value real estate deals.

Conclusion

REURB is more than a tool for social inclusion—it is also an instrument of economic leverage.

Properties that were once “dead assets,” with no market value, become liquid assets, eligible to circulate in the market, generate credit, and form part of asset strategies.

·         For residents, it means immediate appreciation.

·         For municipalities, it means increased tax collection.

·         For the real estate market, it means expansion of the formal business base.

In short, REURB is a turning point: it transforms irregularity into opportunity, possession into ownership, and insecurity into valued assets.