60% of Rio de Janeiro’s new favelas are in the West Zone.
Favelas in the North Zone occupy a greater portion of the city; more than one million people live in communities in this zone.
Large favelas in Rio are prone to real estate speculation. The implementation of services inflated property prices.
Apartments are now common in favelas. Many investors take advantage of irregularities to be able to build apartments and then sell or rent out the units.
Rental price depends on the favela and the property. Monthly rental prices range from R$150 to R$ 500. In Rocinha, people line up to rent a house. Shacks in Pavão-Pavãozinho are sold for R$30.000 to R$40.000.
There is an enormous difference in household income between those who live on the asphalt and those who live in the favela. The average asphalt income is R$1,500, compared to R$352 in the favela. One can see all this inequality in Barra da Tijuca and nearby areas. In Barra, a head of a family earns an average salary of R$ 5,175 while the average income of a family in the Angu Duro community is R$ 382.
Brazilian favelas are considered a consequence of unequal income distribution and the lack of housing across the country. However, according to research by Professor Alba Zaluar, partly funded by the city of Rio de Janeiro, only 15% of favela residents would like to leave their hills. The survey revealed that 97% of these Rio favela homes have a TV, 94% have refrigerators, 59% a DVD player, 55% a mobile telephone, 48% have a washing machine, and 12% own a computer.
Favelas represent 3.5% of the city’s land area.
Between 1999 and 2008, the area of favelas grew by 7%, which corresponds to the entire Ipanema neighborhood.
From 2004 to 2010, 218 new favelas emerged in Rio.
Rio das Pedras favela already has 3,000 apartment buildings.
Favelas have a strong illegal market. Estimates show that irregular businesses generate R$ 3 billion per year.
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