Marcel
de Groot
CEO
Reshaping Paris: how the 2024 Olympics will impact the real estate market
The eyes of the world are glued to Paris, as they eagerly anticipate the 2024 Olympic and Paralympic Games. Hosting the world's most prestigious sporting event comes with many challenges, but also with great opportunities. In this article, we will look at the impact of the Olympic Games on the Parisian and overall French real estate market, as well as on the prospects for the municipalities involved, in particular Seine-Saint-Denis.
The "Olympic effect" and the rising real estate market
Have you ever heard of the "Olympic effect"? It's a fascinating, well-documented phenomenon that has been observed at previous Olympics, such as London 2012, Rio 2016 and Tokyo 2020, to name a few. Largely attributed to the massive investments in infrastructure, transport and sports facilities leading up to the event, this trend is characterized by a significant increase in property values in the host region over the course of the year following the Olympic Games.
However, the French real estate market won't have to wait until 2025 to enjoy the benefits of the Olympics, because already since 2017, when Paris was selected as future host city, property prices have been on the rise. In fact, according to different studies, the French real estate market has already recorded an overall increase of 22.3% over a five-year period.
It is clear that the investments in infrastructure and public transport required to stage the Olympic Games stimulate the local economy. Moreover, the international prestige and visibility associated with the famous sporting event enhances the attractiveness of the host city - Paris in this case - and the surrounding region, with a direct impact on the value of real estate.
The Grand Paris Express: a key element in preparations for the 2024 Olympics
A fundamental aspect to consider when preparing the French capital to host the 2024 summer Olympics is clearly public transport. The city of Paris is planning a series of major investments in transport infrastructure, aimed at improving mobility for athletes, spectators and residents as well.
One of the most ambitious urban planning and development initiatives in the Paris region is the Grand Paris project, which is playing a fundamental role in boosting property values in the region. At the heart of this project is the construction of the Grand Paris Express automatic metro line, which will link the outskirts of the Paris region and the suburbs, bypassing the heart of Paris to reduce journey times, relieve congestion in central Paris and stimulate economic development in the surrounding areas.
By improving the accessibility and connectivity of peripheral areas, the Grand Paris project will stimulate the development of the Paris region's real estate market. All in all, the project represents an ambitious vision to modernize and revitalize the metropolitan region, while strengthening its position as a leading economic and cultural center in Europe.
A dazzling triumph for Seine-Saint-Denis
Even before the start of the competition, it's already possible to declare the first winner of the 2024 Olympics: Seine-Saint-Denis. Located on the north-eastern outskirts of Paris, this municipality will be home to the Olympic and Paralympic Village, due to its strategic location, and to meet the demand for temporary accommodation for athletes and teams, while reducing the pressure on central Paris.
The benefits of the Olympic Games for the city are thus multiple. Firstly, it will benefit from worldwide visibility as co-host of the Games, attracting the attention of investors and businesses. In addition, the legacy of the 2024 Olympics will live on, as the Olympic Village will be transformed into a sustainable suburban development, with 2,200 homes, 3,200 square meters of commercial spaces, a school complex and 120,000 square meters of new office spaces.
This will stimulate the local economy, create employment opportunities and enhance the region's residential and commercial appeal. Ultimately, the Olympic Games offer Saint-Denis the opportunity to position itself as a key player in the Paris metropolitan region, and to take full advantage of this global event for its future development.
Final thoughts
The 2024 Olympic Games in Paris are expected to have a significant impact on the real estate market, with an increase in prices already being observed. The Grand Paris project and the location of the Olympic Village in Seine-Saint-Denis are stimulating real estate growth in the region, creating economic opportunities and leaving a lasting legacy. Ultimately, the Games represent a triumph for Seine-Saint-Denis and a unique opportunity to modernize the Paris metropolitan region.
The role of Flexas.com
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