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The Olympic legacy – hope and house prices
Robert Bartlett CEO of Chesterton Humberts
who are the real winners of the recent London Olympics? With approximately £10bn
A
spent on London 2012, LOCOG is quick to point out that most of the event venues are already in place and that two thirds of the budget is being spent on transport schemes. Some of the schemes had long been planned and the Games have served to speed up their delivery. While the current turmoil caused by the Euro crisis makes any analysis of previous hosts complex, the data does indicate differing experiences from the previous two European countries.
BARCELONA 1992 The 1992 Barcelona Olympics were considered to be an extremely successful event as the games rejuvenated a city, its population and its economy. It is estimated that the Games raised $16.6bn in total revenues for Barcelona between 1986 and 1993 and triggered a major regeneration. This regeneration of Barcelona
incorporated the whole city of Barcelona with a total population of three million people and the legacy of the games is still enjoyed. In the five years after the Games from 1993 to 1998 Barcelona house prices rose by 16.5 per cent.
ATHENS 2004 The Athens Games left a trail of debt and deterioration. The final costs, believed to be over £8.4bn, represented a budget overspend of around 100 per cent. Possibly more seriously the event left numerous unused and
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deteriorating sporting venues and a general feeling of disappointment. In the five years after the Games from 2007 to 2011 house prices fell by 5.5 per cent.
WHAT DO THE OLYMPICS OFFER LONDON? The London games focused on regeneration plans in five London boroughs with a total population of 1.15million people. LOCOG set out to maximise the legacy of the Games for London by focusing investment on
projects with longterm benefits. The development of infrastructure and services for the Games will ultimately service the residential and commercial development in the Lower Lea Valley area. The importance of the Games to these economically disadvantaged areas has been a priority. Industrial and business premises will grow in the Thames Gateway and the Athletes Villages will offer a much needed boost the housing supply. The sporting facilities themselves will become
fter the medals have been given out and the last chords of the closing ceremony fade,
Robert Bartlett, the CEO of Chesterton Humberts and a former international oarsman who represented Great Britain in the 1992 Barcelona Olympics takes a look at the legacy of the two previous European Olympics on their host countries’ housing market and the outlook for London and the UK as the Games draw to a close.
will be the prime beneficiary.”
“East London
part of the fabric of this revitalised community. The road and rail transport schemes being developed for the Games will substantially improve the relatively poor access this area has had to central London.
HOW WILL LONDON’S LEGACY COMPARE WITH THAT OF BARCELONA AND ATHENS? I well remember arriving in Barcelona in 1992 and the excitement about the Olympics had evidently given the City a huge lift. I am not surprised that the Barcelona property market continued to grow from 1992. However I believe the impact of the Olympics is likely to be fairly low on a London wide basis. The prime London market continues to flourish but it is hard to see any part of London that is not included in the environmental and accessibility improvements benefitting. Whereas Athens profited from a new ‘M25’ and airport no such substantial changes have been made in London. East London will be the prime
beneficiary due to this investment and the availability of some sites directly connected with the Games, including the Athletes’ Village. The likelihood of any substantial ripple through the rest of London seems limited other than firmly cementing the concept of London as a modern, thriving and truly cosmopolitan city. If nothing else the international community will continue to see London as a haven away from the current woes of mainland Europe and this should serve to benefit the London community as a whole through this fragile economic environment.” l
TheNegotiator l September 2012 l 21
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