North Rio de Janeiro Favela Pacification Programme Boosts Real Estate and Land Values
Recent evidence has pointed to noticeably rising property and land values in one of Rio de Janeiro’s largest regions of favelas communities (urban neighbourhoods consisting of badly structured and poor quality housing, usually located in the city peripheries). Much of the news has been attributed to the recent pacification programmes undertaken in several regions deemed at risk by the city government.
According to the president of the Syndicate of Real Estate Brokers Egydio Andreza, what has resulted is an ‘explosion’ of sales levels and rentals. The pacification process in the northern metropolitan region of Rio de Janeiro started in 2010 with the main action being taken in the Borel, Formiga, Andaraí, Salgueiro, Turano, Macacos and São João favelas where prices estimates have increased by over 100 per cent in the year according to property specialists in the region. Pointing to the Mangueira favela in the north of the city (located close to the Maracana stadium), Andrez stated to the Terra online magazine: ‘construction companies’ interest in the region has grown considerably – particularly with the up-and-coming World Cup and Olympic games.’
Whilst concerns remain with regards to the effect of such rapid real estate prices rises will have on affordability levels – the removal of gang warfare, trafficking and key favela leaders has been largely viewed as welcomed progress in a area with one of the highest concentrations of such habitation in Latin America.
