Do the Olympics matter when it comes to real estate?
Even if you’re not a sports fan, it’s hard not to get swept up into the drama and spectacle of the Olympics. The opening ceremonies of the Beijing Games were enough to give me the chills.
But being a real estate writer, I couldn’t help but wonder one thing as I watched the low-ranked Latvian beach volleyball team defeat the top-ranked U.S. team: What impact do the Olympic Games have, if any, on the residential real estate markets in their host cities?
Not surprisingly, I’m not the only one who wondered about this. The folks at Jones Lang LaSalle wondered about it, too. In fact, they put out their own report looking at the issue, Reaching Beyond the Gold: The Impact on the Olympic Games on Real Estate Markets. Their conclusion? The Olympic Games can have a long-term positive impact on host cities.
The report studied the real estate markets in recent host cities, and determined that the infrastructure improvements that typically come with a successful bid for the Olympics provide a long-term boost in property values. The report points to a new airport that Athens built for its Olympic bid, and the positive impact that improvement had in the property values in nearby neighborhoods.
There is some debate, though, on how helpful the Olympics can be to the real estate markets in countries that are already well-developed. For instance, I live in Chicago, which is vying to become host to the 2016 summer games. It’s hard for me to imagine that the city will tackle too many infrastructure improvements. I do have hope, though, that the city will have to improve its public-transportation systems for the games. That could have long-lasting positive benefits.
It looks, then, like hosting the Olympics doesn’t hurt a city’s housing market. It may not provide a huge boost to property values, but every little bit helps, right?
Tags: Beijing, Jones Lang LaSalle, Olympic Games, opening ceremoniesRelated Stories
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