Real Estate, not Gun, Battles Define Tranformed Rio Favela

Jonathan Watts reports on the transformation of the Vidigal favela in Rio de Janeiro. With drug gangs kicked out, wealthy buyers have moved in, and rental prices have surged. But has the neighborhood changed for the better?

1 minute read

January 25, 2013, 5:00 AM PST

By Jonathan Nettler @nettsj


"Until recently," says Watts, "this hillside shanty town was dominated by drug gangs and widely considered off-limits among both the local and foreign middle class."

"But the favela is undergoing a transformation. The police have taken control of the streets and with the gangs no longer deciding who enters their territory, rental prices have surged more than threefold in three years. Wealthy buyers are snapping up the prime plots, real estate firms are opening offices and more outsiders are moving in."

Vidigal, with its "spectacular views, long history and attraction for artists," has quickly become one of the most fashionable in Rio, and rumors abound that the globe trotting real estate moguls Brad Pitt and Angelina Jolie have even bought in.

"Take away the paramilitary campaign against the drug gangs and what is happening is similar to the gentrification seen in cities such as New York, London, Berlin and Beijing," notes Watts. And some are contemplating what that means for the area's poor families, and those in the city's other 39 slums that the police are trying to "pacify."

"For now, people are happy with the way things are going because they are making more money," says Nicola Tadini, a researcher who is studying the process. "But the gentrification will change this community. Instead of neighbour and neighbour, you are starting to see employer and employee."

Tuesday, January 22, 2013 in The Guardian

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight