What Are the Post-Olympics Consequences for the Real Estate Market?

The Real Estate Legacy Left by the Games

Host cities of the Olympic and Paralympic Games must equip themselves with infrastructures capable of organizing sporting events (stadiums, Olympic villages, residential areas for athletes, etc.) and accommodating the massive influx of visitors. The transport, accommodation, and overall image of the cities then become top priorities for authorities and organizers. To prepare for the Games, cities often invest heavily in these infrastructures, which serve as catalysts for pre-existing development projects.

After the event, these structures are often converted into housing, offices, or commercial spaces, as cities seek to reintegrate these new infrastructures into the urban fabric. London (2012) and Barcelona (1992) are often cited as success stories, having used the Games to revitalize underdeveloped neighborhoods and stimulate long-term economic growth. London’s Olympic Village, for instance, was transformed into a residential area called East Village, creating a new sustainable community. In contrast, cities like Athens and Rio have struggled more, suffering from a lack of long-term planning and the high maintenance costs of infrastructures that failed to find optimal reuse.

The success of a host city therefore depends on its ability to integrate Olympic infrastructures into a coherent urban development project. In Paris, the organizers of the 2024 Games made a strong commitment: to host more sustainable Games, with 95% of infrastructures being existing or temporary. With an investment of around €4.4 billion, more than 60 structures were built or renovated in record time and on an unprecedented scale.

The Impact on Surrounding Neighborhoods

The Olympic Games often act as a catalyst for gentrification in the neighborhoods where they take place. Urban redevelopment modernizes these areas, attracting new investors, businesses, and higher-income residents. While this can enhance property values, it can also lead to rising rents and property prices, sometimes forcing original residents to relocate. For instance, in Rio de Janeiro (2016), some neighborhoods around the Olympic Park underwent transformations that displaced local populations, giving way to modern infrastructures and luxury housing.

Following the Paris 2024 Games, Seine-Saint-Denis is expected to experience significant growth in the coming years. This area has received the largest share of investments, with projects such as the Saint-Denis Aquatic Center, the Olympic Village between Saint-Denis and Saint-Ouen — which hosted 14,000 athletes — as well as the Media Village in Dugny, the Arena Porte de la Chapelle, and the extension of Metro Line 14. In the coming weeks, 4,000 new housing units, as well as shops and offices, will emerge in Saint-Denis and Dugny.

The Evolution of Real Estate Prices

The Olympic effect on real estate prices varies depending on the economic context and the ability of cities to effectively integrate new infrastructures. In Barcelona, for example, the 1992 Games led to a lasting rise in property prices thanks to the successful transformation of the coastline and improvements in infrastructure. The Sydney 2000 Games clearly demonstrated a "Games effect" on real estate, with prices soaring by 60% in just four years.

This trend has also been observed in other host cities, where property prices increased by an average of 17% between the year before and the year after the event. Conversely, Athens saw property prices drop after the 2004 Games, mainly due to the ensuing economic crisis.

Despite the optimism surrounding the Paris 2024 Games, the underlying realities of the French real estate market remain unchanged — high interest rates, a slow decline in prices, and ongoing political uncertainty continue to weigh on the sector. The effects of the event are therefore expected to remain limited.

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To learn more:

Olympic Heritage and Impact – https://olympics.com/cio/heritage-olympique
Housing, Sport, the Seine: The Rich Legacy Hoped for from the Paris Olympics, Les Echos, 08/09/2024