In order to make our case for Rio’s outrageous property bubble, we first start with a one-paragraph background on Vidigal’s slum in Rio …
Vidigal is a “favela” in Rio de Janeiro, with a view of Ipanema Beach and Ilhas Cagarras. It is located in the South Zone of Rio, between Leblon and São Conrado neighborhoods. The population there faces problems with drug wars and crime daily. When fighting and gun shots between gangs and police occur, the residents sometimes have to stay there for days without leaving their humble houses. 

Some 13,000 people, according to the IBGE, and 40,000 according to president of the Community Association Wanderley Ferreira, live in brick houses spread over the hundreds of alleys and stairs – see picture below. 
With this background in mind, this is how far the speculation in Rio and its slums has gone (citing a passage from today’s Folha article):

Nídia de Paula, 61, former Brazilian porno comedy muse, is a condominium manager and a real estate agent in Vidigal. Two years ago she sold a two-story apartment with a view of the sea for R$ 120,000; 18 months later, she resold it for R$ 300,000. “Prices will go up even more. They are outdated in comparison with the rest of the south zone.” 
And here we rest our case. Original article can be found here.
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