Do the Olympics increase house prices?

With the conclusion of the 2024 Summer Olympics in Paris and the anticipation of the 2026 Winter Olympics in Milan-Cortina, both cities have seen a significant impact on real estate prices.

With the conclusion of the 2024 Summer Olympics in Paris and the anticipation of the 2026 Winter Olympics in Milan-Cortina, both cities have seen a significant impact on real estate prices. Sporting events of this magnitude not only attract tourists and investment, but also directly affect the real estate market, with significant increases in the areas involved in the Olympic projects.

The Olympics effect on Paris

In Paris, during the 2024 Olympics, property prices increased significantly, especially in areas close to the Olympic sites. According to some reports, in the areas closest to the Olympic Village and the new sports facilities, house prices increased by 7-10%. Neighbourhoods such as Saint-Denis, which has seen major redevelopment and infrastructural improvements, have seen steady growth. Some analysts predict that the effect of the Olympics will continue to influence the real estate market even after the Games are over, as the new infrastructure increases the attractiveness of these areas for residents and investors.

Milan and the 2026 Winter Olympics

Milan is also experiencing a sharp rise in real estate prices in anticipation of the Milan-Cortina 2026 Winter Olympics. Over the past two years, average prices in areas affected by the Olympic projects, such as the areas near the former Porta Romana railway yard, have risen by 5-8%. Investments in new infrastructure, such as the construction of the Olympic Village and the expansion of public transport, continue to make Milan an attractive destination for real estate investors, pushing prices up.

According to Nomisma, a real estate research institute, price increases could accelerate in the coming years to 12-15% by 2026. Milan, already one of the cities with the highest real estate prices in Italy, could see a significant increase in demand, both from domestic and international investors.

Opportunities and challenges

For investors, the Olympics represent a unique opportunity, as rising real estate prices in areas close to Olympic projects offer possibilities for long-term gains. However, this could pose a challenge for local residents, with the risk of seeing the cost of living and housing affordability rise further. Overtourism and gentrification are phenomena often associated with large events such as the Olympics, which transform entire neighbourhoods, making them less accessible for the weaker segments of the population.

Conclusion

The Olympics have had and will continue to have a major impact on property prices in Paris and Milan. Areas close to Olympic projects are seeing growing demand and increases in value, bringing opportunities for investors, but also challenges for residents. Cities are experiencing major urban transformations, but the final balance between benefits and costs will only be visible in the coming years.

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