Pre-Olympics vs Post-Olympics Property Prices: How Will the Games Affect the Real Estate Market in Paris?
Volume XXI, Issue 34
Everyone wants to know how the 2024 Paris Olympics will affect real estate in the capital. I admit that I personally haven’t paid much attention to the upcoming games, as I’ve never been much of a fan of sports of any kind and intend to leave the city while the “hullabaloo” is taking place—which is clearly counter to most normal people!
Fortunately, much has been written about this by others in the industry, which I can share with you now, adding my own viewpoint/opinion. Whatever the soothsayers say, is only in their imagination, even if based on a solid foundation of facts and information.
Sure, Paris has always maintained an allure as a prime destination for real estate investments, and likely always will, for a long list of reasons that make it a risk-free investment. But the hosting of such a major sporting event can, and should, deliver added economic and infrastructural advantages. The games are scheduled from July 26th to August 11th, 2024, and are poised to exert a significant influence on the real estate landscape of the city.
One of the primary avenues through which the Olympics will shape the real estate sector is by means of the development of an even stronger infrastructure. In preparation for the Games, substantial investments have been channeled into erecting novel transportation networks, stadiums, lodging facilities, and initiatives for urban rejuvenation. These endeavors not only augment the appeal of the host city but also contribute to the overall expansion of the real estate market.
The escalated demand for short-term accommodations during the Olympic Games can also reverberate in the rental market. With an influx of athletes, officials, spectators, and media converging upon Paris, the requisition for hotels, holiday rentals, and serviced apartments will surge. This heightened demand will elevate rental prices and occupancy rates during the event.
Furthermore, the act of hosting the Olympic Games frequently catalyzes initiatives for urban renaissance. Neglected sectors are experiencing revitalization, public spaces are undergoing enhancements, and existing infrastructure is undergoing upgrades. These actions will exert a positive impact on property values and beckon further investments in the adjacent regions, thereby fostering growth in the real estate market.
The legacy effects stemming from hosting the Olympic Games can also be substantial. The establishment of fresh sports amenities and venues can facilitate forthcoming sporting events and leisure activities. Additionally, improved transportation networks amplify connectivity and accessibility, which, in turn, can contribute to sustained progression and advancement within the real estate market.
For the 2024 Olympic Games in Paris, significant infrastructure investments are concentrated within both the city center and Greater Paris, spanning locales like Seine-St-Denis, Yvelines, Seine-et-Marne, and Hauts-de-Seine. The Olympic and Paralympic Village is designated for St. Denis Pleyel, and the “media village” has been established in Dugny.
Experts prognosticate that the Paris 2024 Olympic Games will yield economic benefits exceeding 10.7 billion Euros for the Greater Paris region. The extensive urban projects outlined for the Games encompass the Porte de la Chapelle Arena, the Olympic circuit (a novel road service), and the erection of the Grand Site Tour Eiffel.
Of notable development is the construction of a new volleyball stadium beneath the Eiffel Tower, providing a captivating backdrop for sporting events. The precinct surrounding the Eiffel Tower is also undergoing rejuvenation, incorporating the creation of a new verdant park known as the “Site Tour Eiffel” project. The Champ de Mars Arena, or Grand Palais Overlay, a sustainable wooden structure, has already been erected in proximity to host a range of Olympic events.
The ramifications of the Olympic Games extend beyond the city nucleus. The Seine-Saint-Denis district, often referred to as the “9-3,” is a focal point for the Games and forthcoming metro expansion. Numerous businesses and students have already established themselves in this region, which is experiencing demographic expansion and amplified employment prospects. The advent of the Super Métro is projected to drive up prices, with real estate values around the 18 stations on Line 15 anticipated to rise by an average of 29 percent by 2030.
Saint-Denis is emerging as the municipality boasting optimal public transportation connections to Greater Paris, accompanied by the construction of 2,200 new residences to accommodate 6,000 residents. Other towns in Seine-Saint-Denis are also poised to reap positive spin-offs, including Le Bourget and La Courneuve, along with Bobigny, set to house the Prisme (a reference center for parasport activities), encompassing a 15,000 square-meter sports complex with an embedded research center dedicated to sports and health. This complex is flanked by two prominent sites, Sorbonne Paris Nord University and Avicenne Hospital.
While the positive impacts of the 2024 Olympics on the Paris real estate market are evident, it’s crucial to recognize that these effects will extend beyond the inner city. Suburban regions will also reap rewards, particularly due to enhanced transport connections. Experts envisage a property price surge of 10 percent to 15 percent in the suburbs following the establishment of the transport infrastructure, with potential long-term gains soaring up to 40 percent.
Among the suburbs warranting particular attention, Hauts-de-Seine presents attractive prospects for real estate investment. This department is slated to host the 2024 Olympics, featuring the Yves-du-Manoir stadium in Colombes and the Arena La Défense Paris in Nanterre, earmarked for swimming, water polo, and para-water polo competitions. This city will also accommodate two stations of the Grand Paris Express (La Boule and La Folie), in addition to the RER E station within a decade.
Other regions are capitalizing on the expedited progress of the Grand Paris Express project. To the western periphery, within the Yvelines department, the Saint-Quentin Est station will serve as a hub for golf, mountain biking, and BMX bicycle racing events.
Without question, the hosting of the 2024 Olympic Games in Paris will effect a transformative influence on the real estate realm. The substantial investments in infrastructure, amplified demand for accommodations, undertakings for urban rejuvenation, and enduring legacy effects collectively contribute to the expansion and evolution of the real estate sector. These Games will not merely exhibit the finest facets of Paris to the global community, but will also etch an enduring impression on the city’s real estate canvas for years to come.
In the past, we surmised that real estate in the City of Light would see price increases up until the Olympics, but in reality that hasn’t happened. Our crystal balls weren’t all that clear, as in fact, prices are down. But, I doubt they will be on that trend for long. With the advent of such important infrastructure, notably the augmentation of transportation, real estate in Ile-de-France is sure to see a big boost after all.
The point is: NOW IS THE TIME TO BUY IN THE CITY OF LIGHT!
If you’ve been considering an investment in Paris, then don’t wait a single minute longer, as you may regret it post-Olympics, when the whole world wants a piece of the most visited city in the world. Prices will rise based on good old-fashion “supply and demand” economics!
The Adrian Leeds Group®
P.S. Now’s the time to schedule a consultation to discuss the possibilities of an investment in Paris (or elsewhere in France). Contact us for more information.