The Athens property market is set to receive a boost from 2004 due to the Olympics, if the long-term...
The Athens property market is set to receive a boost from 2004 due to the Olympics, if the long-term effect of the previous four games on their host cities is repeated.
This is the conclusion of a report by Jones Lang LaSalle, which found the Olympics generated far more than short-term rises in jobs and revenue.
The report, called Reaching Beyond the Gold: The Impact of the Olympic Games on Real Estate Markets, examines the legacies of four recent Olympic hosts and forecasts the potential impact on Athens, the host in 2004.
Melinda McKay, senior vice-president, Jones Lang LaSalle, and co-author of the study, said: 'Each of the recent host cities has capitalised on the Olympics to revitalise run-down urban areas. The Sydney games, for example, were hosted on a site that had previously been home to an unusable swamp, brick works, a meat-packing house and a munitions dump.
'As a result of the games, this area is now one of the most accessible locations in Sydney, boasting world-class sporting facilities and one of the largest and best serviced new residential communities in the city.'
Atlanta, which had experienced many of the classic problems associated with urban sprawl, made a determined effort to revitalise inner-city areas, with the area around Centennial Olympic Park currently undergoing a revival.
Craig Plumb, director of research for Jones Lang LaSalle and co-author of the study, said: 'If this trend can be leveraged, the full benefit of the games may be realised more than five years after the flame was extinguished in Atlanta.'
Infrastructure development has been another major benefit for Olympic host cities. McKay said: 'Many of the proposed infrastructure improvements had been discussed for years, but the Olympics often provided the necessary catalyst to bring projects to fruition.
'Fortunately, most recent host cities have learned from the costly mistakes of earlier hosts, minimising investment in temporary facilities and maximising investment in long-term projects.'
For a host city's tourism and convention industries, the long-term payback of the games is profound. The 2000 Olympics has been widely recognised as the biggest marketing event in Australia's history, with an estimated $2bn of global publicity for Sydney and Australia over the past four years.
It is estimated that the Sydney Olympics will add approximately $4.3bn to the Australian GDP and will create as many as 100,000 full-time jobs over the 12-year period from 1994 to 2006.
The estimated net impact on Atlanta was $5.1bn, $16.6bn on Barcelona and $2.6bn on Seoul. The Seoul Olympics acted as an important catalyst, promoting Korea as one of the leading Asian tiger economies.www.ifaonline.co.uk
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