Paris has always been an attractive city for real estate investment, and hosting major sporting events like the Olympic Games can offer added benefits to the economy and infrastructure. The imminent 2024 Olympic Games, which are scheduled to take place from July 26th to August 11th that year, will have a significant impact on the city's real estate market.
The development of infrastructure is one of the main ways in which the Olympics can have an impact on the real estate market. In anticipation of the Games, significant investments will be made in the building of new transportation systems, stadiums, lodging facilities, and urban revitalization projects. These developments serve to improve the appeal of the host city while also contributing to the overall expansion of the real estate market.
During the Olympic Games, the demand for short-term accommodation can affect the rental market. As athletes, officials, spectators, and media flock to Paris, the need for hotels, vacation rentals, and serviced apartments will likely increase. This rise in demand will lead to higher rental prices and occupancy rates during the event.
Moreover, the hosting of the Olympic Games typically initiates urban revitalization projects. Run-down areas are rejuvenated, public spaces are enhanced, and infrastructure is upgraded. These endeavours can positively impact property values and entice further investment in the surrounding regions, fostering growth in the real estate industry.
The impact of hosting the Olympic Games can have long-lasting effects. Building new sports facilities and venues can support future sporting events and leisure activities. Furthermore, upgraded transportation networks can improve connectivity and accessibility, leading to consistent growth and development in the real estate industry.
Significant investments are being made in infrastructure for the 2024 Olympic Games in Paris, with a focus on both the city centre and Greater Paris. This includes areas such as Seine-St-Denis, Yvelines, Seine-et-Marne, and Hauts-de-Seine. The St. Denis Pleyel region has been selected as the location for the Olympic and Paralympic Village, while the media village will be situated in Dugny.
According to expert estimates, the Greater Paris region is expected to receive economic benefits of more than €10.7b from the Paris 2024 Olympic Games. The Games will involve several urban projects such as Arena Porte de la Chapelle, the Olympic circuit, and the development of the Grand Site Tour Eiffel.
One unique feature of the developments is the creation of a new volleyball stadium beneath the Eiffel Tower, which will provide a stunning backdrop for sporting events. The Eiffel Tower vicinity is also transforming, with the introduction of a new green park called the Site Tour Eiffel project.
Arena Champ de Mars or Grand Palais Overlay, a sustainable wooden structure, has already been built nearby to host various Olympic events.
The impact of hosting the Olympic Games goes beyond the boundaries of the city centre. Seine-Saint-Denis department, commonly known as the "9-3" is a key area for the Games and the future expansion of the metro system. Many companies and students have already established themselves in this region, which is witnessing an increase in population and job opportunities. The introduction of the Super Metro is expected to push up prices, and it is projected that real estate prices around the 18 stations on Line 15 will increase by an average of 29% by 2030.
Saint-Denis is set to have the most comprehensive public transportation connectivity with Greater Paris, while also accommodating 6,000 residents with the construction of 2,200 new homes. Other towns in Seine-Saint-Denis such as Le Bourget, La Courneuve, and Bobigny will also benefit from this development. Bobigny will host the Prisme, which is a reference centre for parasport activities, along with a 15,000m2 sports complex that includes a research centre dedicated to sports and health. This facility is situated amidst two major sites, Sorbonne Paris Nord University and Avicenne Hospital.
The impact of the 2024 Olympics on the real estate market in Paris is expected to be positive, but it's worth noting that the effects will not be limited to the city centre. Suburban areas are also likely to benefit, especially with the improved transportation infrastructure. Real estate experts anticipate a surge of 10% to 15% in suburban property prices once the transportation infrastructure is established, with the potential for long-term gains of up to 40%.
An area that offers great real estate investment opportunities is Hauts-de-Seine, among the suburbs being closely monitored. The department is one of the locations that will host the 2024 Olympics, with the Yves-du-Manoir stadium in Colombes and the Arena La Defense Paris in Nanterre, where swimming, water polo, and para-water polo events will be held. Additionally, two stations of the Grand Paris Express (La Boule and La Folie) and the RER E station will be available in the city within ten years.
The acceleration of work on the Grand Paris Express is also benefiting other areas. Saint-Quentin Est station, located in the Yvelines department to the west, will serve as a transportation hub for golf, mountain biking, and BMX events.
The real estate market is expected to transform due to the hosting of the 2024 Olympic Games in Paris. The growth and development of the real estate sector will be influenced by significant investments in infrastructure, increased demand for accommodation, urban revitalization projects, and long-term legacy effects. Not only will the Games highlight the best of Paris to the world, but they will also leave a lasting impact on the city's real estate landscape for years to come.
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