Why is Rio so expensive?
One or two of you may have seen that I got a little mention in the mighty O Globo yesterday morning! If your Portuguese isn’t up to it (or you’re just straight-up lazy) then I’ll see if I can summarise what the article said.
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Rio is one of the most expensive cities in the world for expatriates. Tom Le Mesurier, who has a blog called Eat Rio, wonders how a bottle of wine from Chile can be cheaper in the UK than in Brazil. Tom jokes that the solution is to drink cachaça instead and says that although some foods like fruit and vegetables are cheaper than London, the fancier restaurants are more expensive.
An Italian guy who has lived all over the world says Rio has been the most difficult. He’s planning to open a business but high prices worry him. An economist says that high prices remain one of the biggest challenges that Brazil faces in terms of being competitive. Weirdly, the Lonely Planet has just voted Rio the best value city in the world [this is so weird – I just can’t understand this, it makes no sense].
Expat rats have money to burn! Are they (we) driving the high prices in Rio?
Things are even harder for Latin Americans. A Colombian woman says that public transport is also very expensive and that property rental prices are higher than in Paris. The economist then says that property prices have been rising above inflation in many Brazilian cities as demand is greater than supply.
A Frenchman says that prices are the same as Paris but the services are not of the same quality. Finally Nathan Walters, an American [and a friend of mine!] says that he feels lucky to have found a 2 bedroom apartment in Copacabana for around 1,600 USD/month. He also says that the restaurants in Rio are expensive.
The piece finishes up by saying that despite the high prices, none of the foreigners said they want to leave Rio.
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So that was a quick summary of the article. I haven’t had the courage to read the ‘Reader comments’ section yet – on past experience with O Globo, I expect more than one go something like “If the stinking rich Gringo is so bothered about the high price of imported wine, why doesn’t he go and live in France!”.
But on a serious note, having had my name against one small comment in a larger article, I wanted to expand a little on prices in Rio. I’ll quote all prices in Reais – divide by 2 to get USD, divide by 3 to get GBP.
I really does feel expensive here. In my everyday life I only use buses and the metro to get around, but if we ever take a taxi, it really packs a punch to the pocket – between R$20-40 to get between most neighbourhoods in Zona Sul. A simple (often pretty mediocre) meal for two can easily cost R$150 or more.
Rental prices in Zona Sul are crazy – when we were looking at places in Copacabana, apartments started at R$2,500 per month and all the ones we saw were pretty horrible and needed serious renovation work.
The point of all this is not to bemoan how difficult life is (well, not just that), but to ask how someone on an average (or below) average salary can hope to enjoy the city in which they live. If so many of the good things that a city has to offer are beyond the reach of the majority of its citizens, doesn’t that suggest a serious problem?
When I look at the crazy rent prices, the question that occurs to me is “Who can afford that?” – if the prices are so high, someone has to be paying them right? So who is driving these high prices? Could it be the 70,000 foreigners living in Rio? Or the several million tourists that visit each year? Despite popular belief, not all expats are super-rich. I guess we’d have to look at the census, but some percentage of that number are people from relatively poor countries, some of whom would be bringing the average down.
Maybe I just want it to be someone else’s fault, but my gut feeling is that there are a lot of super-rich Brazilians (the ones with second and third properties) and it is they who maintain such high prices. What do you think?
“Maybe I just want it to be someone else’s fault, but my gut feeling is that there are a lot of super-rich Brazilians (the ones with second and third properties) and it is they who maintain such high prices. What do you think?”
It’s hard to believe that there are more rich people living here in Rio than in London. The Economist magazine always refers to the infamous Custo Brasil to explain why Brazil is so damn expensive.
And I really don’t see Brazilians as xenophobic as you put, I really don’t. I don’t know about your personal experiences, but what I see every day is that Brazilians LIKE people from other countries, they feel curious about them. And most of the comments I could read mock Brazil and have a “only in Brazil”/self-hatred kind of tone.
cheers!
Hi BrazilianSoul,
I don’t think Brazilians are xenophobic! :) If you’re talking about my “Go and live in France!” comment, I’m really only talking about the crazy element who leave comments on O Globo – I don’t mean everyone who comments on Globo is crazy, but there are a few! ;)
I guess maybe I am a little sensitive about this because I have had 3 or 4 very unpleasant experiences where angry guys have verbally attacked me purely because I am a foreigner. One of them actually spent about 20 minutes telling my wife that he was a xenophobe – he actually used that word! The sheer vitriol and bitterness was shocking and one of nastiest things I’ve experienced. When you are subjected to that, it is hard not to wonder how many more people think this way but don’t say it out loud. They don’t seem to understand that instead of having this permanently wonderful dream-life in Rio, I spend a lot of time on my own, missing my friends and family, trying to make a better life in quite isolated circumstances. Not that I’m asking for sympathy, but I have good days and bad days.
I know that the truth is that those angry people are a very small minority and the vast majority of Brazilians are deeply warm, kind, welcoming people. But, to use an analogy, when 20 people are friendly and one person stamps on your foot, you go home thinking about your sore toes! Luckily the sore toes recover the next day :)
” If you’re talking about my “Go and live in France!” comment, I’m really only talking about the crazy element who leave comments on O Globo”
Oh, some of them are very crazy indeed! There is a guy over there saying that Rio’s prices are high because of Brazil, and we need to secede from the Federation! Can you believe it? One person writes below another comment: “Jealous and envious paulista detected!”. Another crazy person says that your comment about cachaça “mocks Brazilian culture”! Yeah, man, I agree. Those guys need straitjackets immediately.
And I feel very sorry about your 3 or 4 bad experiences in Brazil regarding xenophobia.
And “imagina na copa” is a very appropriate comment o make now, because if we want to organize international events and receive people from all over the world here we should respect them first.
Liking Cachaça is mocking Brazilian culture? Seriously?! Some people are just determined to be angry about something aren’t they? ;)
Happily most Brazilians are friendly, sane people (apart from that thing you guys do with avocado ;) ).
Tom! That is so awesome! People are going to come up to the street now and say hi! (And tell you to leave if you don’t like the high prices, hahaha just kidding) But anyway, that’s pretty awesome! Globo is a biiig deal!
Anyway, I don’t think Rio will get cheaper anytime soon. I think it’s just going to get more expensive, especially in housing which is a huge problem. The only way that it will get better is if people change their mentality that Zona Norte has potential and they start building out that way because ZS and Barra are just going to increase in prices. Supply/Demand!
In fact, a penthouse in the ”Grand Hyatt” residential section (not even built yet) In Barra sold for $50 M Reais. That’s ZS prices. That’s the next neighborhood to be untouchable.
I think Niteroí and places on that side of the bay may be the next hot spots considering they are much cheaper and still have potential (Even though they are pretty far, and theyre gonna need to build the metro to reach over there,too)
Tchau!
Thanks Alex! It had actually one really cool side effect which is that a couple of restaurant owners emailed me and told me about a bunch of places I should check out :D
The house prices here are a nightmare. I heard that Gamboa out by the docks could be the next big place.
You know one of the reasons I never settled in London was that I could not afford to buy a property. Then I moved to Rio! I should pick somewhere cheaper! rs
A shout out in O Globo – that’s off the hook! Amazing!!!
Ha ha! Yeah – it was pretty awesome. Really nice of the journalist to include the blog name – there was quite a spike in visitors that day! Haven’t seen numbers like that since that video of us invading the airport during carnival was featured on the NineMSN website in Australia! :)
Apart a few exceptions, Globo, Folha, CNN, Dailymail, is all a big garbage of stupid people,do not read comments of news sites is a prophylactic measure.
Heh heh! Muito bom Cezar! Gostei de “prophylactic measure” – you’re absolutely right and I think that on this you, BrazilianSoul and I can all agree :)
yep, the comments are so bad and full of prejudice that is harmful to health read! – (sorry my enlgish).
Não precisa pedir desculpas por nada! Como você pode ver, meu português é bem ruim! Estou pensando em fazer um post em português, mas não sei se eu teria coragem suficiente! :)
Once again the quality of my comments here at Eat Rio land Tom in the mainstream media; meanwhile my blog is not mentioned at all. This is just the same old cycle of colonialism and exploration repeating itself for all to see, and probably why many compare my plight to that of Mahatma Gandhi (or Mohandas Karamchand Gandhi as Tom calls him). And yes: I will be posting this message over at Globo.
Like the man says, all the best online publications have a good sprinkling of comments from crazy people, it’s only right that we have some here at EatRio as well… ;)
As for colonial exploition, I can’t help it – it’s in my genes!
p.s. from now on I will be using the proper ethnic spelling of your name, Gritchi Pwoete.
“Like the man says, all the best online publications have a good sprinkling of comments from crazy people, it’s only right that we have some here at EatRio as well…”
Finally you give Alex his fair due.
Oh, not to be a geek but wouldn’t it be Gritchi Pwoetchi?
You’re practically famous! Congratulations! How did they find you?
Wasn’t it you who posted an article written by an economist that listed a lot of reasons why Brazil is expensive? I read it a long time ago — more than a year ago — so I don’t remember who posted it. But it was helpful because it showed how complex the issue is (history, tax laws, infrastructure (inefficiency), transportation (related to infrastructure), demand / culture, income inequality, labor protection laws….). The good side of the high cost of living in Brazil is that it forces us to reconsider our priorities, and what’s really important to us. :)
Hey Danielle – sure enough I found this in the Spam filter [maybe there are too many spam messages that start with the text “Congratulations!”, as in “Congratulations! You just won a years supply of viagra…”] ;)
You’re right about prioritising. I’m not pleading poverty, but as I realised after Andrew’s comment in yesterday’s post, I probably could afford a car if I was willing to give up on
funother stuff. But I’d rather have the other stuff!There are many ways you can make life more affordable here. If money is tight, why not look in Tijuca? Even Glória and Catete are far more reasonable than Copa. It’s only logical that a beach neighborhood is not going to be the best value for your money. Also, shop at the markets, or at least the modest groceries, not the ridiculously overpriced Zona Sul or Pão de Açucar.
Restaurants are tricky, but I’ve learned that price really doesn’t equal quality here. Foreign cuisine is overpriced, and expensive Brazilian food is rarely worth it. At the same time, I can get a fantastic plate of steak and salad for R$15 at a per kilo restaurant, something that far and away outmatches anything back home in the US. And there’s the R$5 Açaí, which would be double or triple elsewhere.
And how about the entertainment. The beach is free, so that’s a plus. Beers and caipirinhas are cheap. You can get tickets to a soccer/football game for R$40. Half price movies with a Bradesco or Itau credit card.
I’m sure it’s because I grew up in New York City and lived in Boston. I guess I’m used to expensive cities and having to find work-arounds to live on the cheap.
Hi Eric,
Sorry for the delay in replying – I was
stuffing my faceenjoying the fine restaurants of São Paulo all weekend ;)You are absolutely right, there are a lot of ways to cut down on expense. I actually live in Glória (though I like to call it Santa Teresa – it is close at least!).
I totally agree with you about the street markets – they’re not only cheaper, but the produce is far better quality than in the supermarkets. I actually said quite a lot about the markets to the journalist, but those bits didn’t make it into the article. My main problem with markets is that they’re not always easy to get to if you’re working long hours like me.
But I guess we’re answering different questions – the issue I’m thinking about is not “it’s impossible to make savings in Rio” (clearly that is possible), but more “Are things more expensive in Rio than other cities? If so, then why?”.
No worries. Gotta love the São Paulo eating, though I think it’s even more expensive, if that’s possible. Looks like we’re neighbors – I’m on Cândido Mendes! You could go with “Alto Glória,” I’ve seen that one. Anyway, we should grab a beer.