Hosting the Olympic Games requires a large amount of investment, but can generate a very positive social and economic impact for cities. Thus, the recent hosting of the 2024 Olympic Games in Paris has left a significant mark on various industries, particularly on real estate.
Major sporting events such as the Olympic Games generate an economic and social impact capable of transforming the host cities—and Paris was no exception. Such major sporting events have a high impact and a transformative effect on cities, affecting various aspects such as the improvement of public transport or the need to meet high accommodation requirements.
The Multimillion-Dollar Impact of the Olympic Games
When the torch is lit in a city’s Olympic cauldron, it is put at the heart of the world’s sporting map. Such premier sporting event generates an unprecedented economic impact on the country’s economy.
The Olympic Games are an investment attraction for the host cities, which contributes to lifting property prices. However, other analysts argue that there is no evidence that host cities organising the games see an increase in property values.
However, a report prepared by the Centre for the Law and Economics of Sport (CDES) projected the impact of the 2024 Olympics at €11.145 bn, the majority of which would go to the organisation (41%), followed by tourism (32%) and construction (27%).
Urban Transformation and Property Investment
One of the most identifiable effects has been the rise in prices in key areas. Around the Athletes’ Village—which covers areas such as Saint-Denis and Saint-Ouen—, there has been a push for infrastructure development and urban regeneration. These kinds of projects often gentrify suburbs that were previously less attractive to investors, which in turn drives up prices. These areas are expected to increase in value by up to 29 per cent by 2030, benefitting from new transport infrastructure, such as the underground.
Furthermore, rentals on platforms such as Airbnb have seen skyrocketed increases during the Olympics. Although prices have softened since their peak, they are still significantly higher than in the same periods prior to the Olympic Games. This has sparked a heated debate about the impact of tourist rentals on the property market.
What Happens When the Olympic Flame is Out?
The economic model of the 2024 Paris Olympic Games has been based on creating a lasting legacy that will benefit the city and the country for years to come. Improved infrastructure, increased tourism rates and the international projection of Paris as a global destination are some of the expected long-term benefits.
Careful financial management, significant job creation and economic impact have positioned these Olympic Games as a model of efficiency and sustainability.
One example of long-term impact will be property investments: the transformation of the Olympic Village into an urban residential district encompassing 2,800 homes housing around 6,000 residents, office hubs, stores and restaurants. Organisers believe that such transformation will gentrify the suburbs. In addition, 8,876 trees will be planted, sprawling out over six hectares of landscaped grounds.
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