The Olympics

by Steve Van Derodar

| Photo from vrogue.com via Stevenson Van Derodar

There’s one riddle I know, and it states: I gather the world in a show of might, Where torches blaze and rings unite. I happen every four years, With gold, silver, and bronze in view. What am I that brings nations near, With a flame and cheers we all revere? Of course, the answer is The Olympics!

The Olympics is a global sporting event with ancient roots and a profound global impact. Originating in ancient Greece around 776 BC, the games were held in Olympia and were initially a religious festival in honor of Zeus. These early competitions featured athletic contests among the city-states of ancient Greece, promoting peace and unity for the duration of the games.

The modern Olympics, revived in 1896 by Pierre de Coubertin, symbolized internationalism. They brought together nations in the spirit of friendly competition and fostering peace, camaraderie, and global unity. The games evolved into a showcase of athletic prowess, innovation, and human achievement.

And so, the 2024 Olympics was in Paris. The success of the 2024 Paris Olympics can be described by various metrics, including the scale of the events, the engagement of audiences, the infrastructure built, and the overall impact on the host city. The Paris Olympics saw a massive influx of tourists and global attention, benefiting the local economy through hospitality, services, and retail. Hotel prices surged as millions of visitors flooded the city. Moreover, new infrastructure and transportation systems were implemented, which will continue to benefit Paris for years.

The Olympics are expected to have social and economic effects. Host cities will change in terms of tourism and infrastructure development. This will mainly affect real estate and have the potential to improve sustainability.

The Olympics present numerous real estate opportunities, particularly in the host cities, as the games can stimulate both short-term demand and long-term urban development. Here are some key opportunities during the Olympics:

  1. Short-term Rental Opportunities

Increased Demand for Rentals: The influx of tourists, athletes, media, and staff to the host city creates a high demand for short-term rentals. Property owners can capitalize on platforms like Airbnb or VRBO by offering their homes at premium rates during the event. Historically, rental prices surge during the Olympics, providing significant income potential for homeowners.

Temporary Infrastructure: Some investors capitalize on temporary housing solutions, such as modular homes or pop-up hotels, which can meet short-term demand without long-term commitments.

  1. Long-term Investment in Property

Infrastructure Development: Hosting the Olympics often leads to significant infrastructure improvements, such as new transport links, sports facilities, and urban regeneration projects. These developments can increase property values in specific neighborhoods, particularly those close to newly constructed venues or transportation hubs.

“The Olympics undoubtedly offer significant real estate opportunities, particularly in short-term rentals, infrastructure-driven property value increases, and commercial real estate. However, these opportunities come with risks that investors need to assess carefully.”

Gentrification: The focus on urban regeneration can sometimes spur gentrification in underdeveloped areas, increasing property values and making those neighborhoods attractive for long-term real estate investments.

  1. Commercial Real Estate

Retail and Hospitality Investments: The increased number of visitors to the city boosts demand for retail space, restaurants, and hotels. Investors in commercial real estate, particularly in areas near Olympic venues, can benefit from higher occupancy rates and sales during and after the Olympics.

New Business Opportunities: The Olympic Games attract global corporations and sponsors that often establish temporary or permanent offices in the host city. This creates demand for office space and provides opportunities for commercial property developers.

  1. Post-Olympic Legacy

Conversion of Olympic Venues: After the Olympics, many venues are converted into residential units, hotels, or mixed-use developments. Savvy real estate investors can get involved in these projects early, securing properties that will benefit from the Olympic legacy.

Increased Global Exposure: The Olympics bring global exposure and can make a host city more attractive to international investors. Real estate markets often see increased foreign investment as the city’s profile is raised worldwide.

  1. Real Estate Speculation

Pre-Games Speculation: Investors often speculate on property values in the years leading up to the games, purchasing real estate in anticipation of infrastructure improvements and increased demand. However, this strategy involves risks, particularly if post-Olympic demand does not meet expectations.

Case Study Example: London 2012

The London 2012 Olympics significantly revitalized the East London area. The Olympic Park and surrounding developments spurred regeneration, transforming neighborhoods like Stratford into prime real estate areas with new housing, retail spaces, and transport links. Property values in these areas increased substantially both during and after the games.

Challenges to Consider

Overinflated Prices: Property values can increase, but there is also the risk of a post-Olympic crash in property prices, especially in markets heavily dependent on tourism.

High Initial Costs: Real estate prices in Olympic host cities can become inflated during the bidding and construction phases, potentially reducing the affordability of real estate investments.

The Olympics undoubtedly offer significant real estate opportunities, particularly in short-term rentals, infrastructure-driven property value increases, and commercial real estate. However, these opportunities come with risks that investors need to assess carefully.

In conclusion, the Olympics’ history is a fusion of sport, culture, and politics. They have played a significant role in international diplomacy and cultural exchange, and they continue to uphold ideals like excellence, respect, and fair play.

There is always a real estate impact standpoint, even with the Olympics.

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ABOUT THE AUTHOR: In New York City, Stevenson is affiliated with Elegran Forbes Global Properties as a Real Estate Advisor and licensed Real Estate Salesperson. Forbes Global Properties is a global network of elite real estate professionals, including brokers, developers, and agents, who specialize in luxury properties. Through Forbes Global Properties, members can connect with affluent buyers and sellers across the globe and showcase their high-end properties on a global stage. Stevenson is a Real Estate Board of New York (REBNY) member and the National Association of Realtors (NAR). Email him at svderodar@elegran.com.

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