Radar Perene / concept
Real Estate Liquidity Index
The Real Estate Liquidity Index (ILI) is the Radar's descriptive 0–100 reading of how liquid Brazil's real-estate market is — proprietary.
What it is
An aggregate reading of the liquidity of Brazil's real-estate market — how easily property, and the credit that underpins it, changes hands — on a 0–100 scale against the indicator's own history. It is standalone: queryable as a series at /ativo/ili, but it does not feed the macro regime calculation.
It reads public sector data — real-estate credit (originations, delinquency, spread) and construction costs (INCC/SINAPI), among others — calibrated to the Brazilian distribution, not an imported ruler.
Why it exists
Because real-estate liquidity is a slow, structural signal that price alone hides. The property market turns slowly; when liquidity dries up or loosens, it contextualizes — and sometimes precedes — moves the stock market only reflects later.
Having a dedicated liquidity index spares the reader from inferring the sector's state from half a dozen loose series: ILI consolidates it into a single, dated reading comparable to its own history.
How to read it
| Range | Reading |
|---|---|
| ≥ 80 | High liquidity — the sector turns well above its historical median |
| 60–80 | Above-average liquidity |
| 40–60 | Neutral |
| 20–40 | Below-average liquidity |
| ≤ 20 | Low liquidity — the sector turns well below its historical median |
Extremes are not automatic reversal signals. They signal that the sector's liquidity is outside its normal historical band — what follows depends on regime, rates, and credit.
What it does not mean
It is not a recommendation or a forecast of property prices. It describes the state of liquidity, not price direction — and it is not the price per m². Liquidity (ease of transaction, credit turnover) and price are distinct.
It does not replace a real-estate price index. ILI measures how easily the market transacts, not how much the square meter costs.
Limits
Real-estate data is sparse and low-frequency — the reading is structural, not tactical. Revisions to public sources (BCB/IBGE) can move the series. ILI is not a short-term timing signal.
Example
ILI: 38. Band: below-average liquidity. Real-estate credit slowing and spreads widening — the sector turns slower than its historical median.
ILI does not tell you whether to buy property. It shows when Brazil's real-estate market is turning above or below its normal.
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Related concepts: Brazil Regime · Intermarket BR · see the full method