Between Laws and Trends: Unraveling the Dynamics of Vertical Housing Units’ Development under Institutional Forces in the Brazilian Amazon

This paper is based on the recognition of a phenomenon occurring in the real estate market of Belém, Pará, in the Brazilian Amazon. The phenomenon refers to the relative increase in the size of the balconies of residential apartments launched in the city between 2005 and 2017 by construction companies, with the aim of increasing the number of units built per tower. Given that balconies were originally areas of low frequency for the occupants of apartments in this region, the aim of this article was to identify and analyze the institutional factors that support this product development strategy, which is becoming increasingly consolidated among companies. To investigate this phenomenon, we collected data from official documents provided by the Municipal Urban Planning Department (Secretaria Municipal de Urbanismo—SEURB), specifically focusing on the launch of residential high-rise buildings during the specified period. Regression techniques with ordinary least squares methods were applied, as well as econometric models of spatial autocorrelation. The results of the hypothesis tests confirmed the relationship between the restrictive parameters imposed by the city’s Urban Master Plan and the relative increase in apartment balconies. The spatial autocorrelation models confirmed the spatial spillover effect, showing that apartment projects with this characteristic tend to be concentrated in certain areas of the city, influencing each other. In order to discuss this phenomenon, the institutional theory was the protagonist of the analysis, showing how an organizational strategy can adapt to the authority that regulates the occupation of urban land in the city, meeting the two market forces and the demand and supply of apartments.