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December 16, 2023Stadium in the city, how much does it affect the price of real estate?
Football fans would even live inside a stadium if they could. But from an urban point of view, there is no doubt that the construction of a stadium can have advantages and disadvantages on several fronts. Indeed, one wonders what the impact of the two new stadiums promised by Inter and Milan will be, almost 100 years after the birth of San Siro.
Although still under negotiation, both constructions could significantly influence the price of real estate, perhaps more so than other metropolitan projects in progress or in the making. Or even influencing the municipality's business supply chain. Immobiliare.it also wondered about the potential development of urban prices in the face of mammoth architecture such as stadiums, and recently published a report.
Inter and Milan, two new stadiums on the way
70,000 seats, maybe four years for construction. These are the first facts about the stadium that is supposed to be built in Rozzano, a location near the centre of Milan. At the moment there are still negotiations with the Cabassi family for the purchase of the land, but the municipality has already given the go-ahead, with the approval of the Pgt (Territorial Government Plan). If the process goes well, the new stadium should be ready by 2028/2029.
And people are already thinking about the spin-off around the new stadium, which should rival the now historic San Siro. In fact, not only Inter-related activities are being considered, but also a sports centre and a park also available to the citizens, as well as a museum and a store.
And so is Milan, which is reportedly considering building its stadium in San Donato. In addition to the stadium, a sports citadel with an 18,000-seat arena. Unlike Inter, the municipality has not yet pronounced itself on the programme agreement to change the current Piano di Intervento Integrato (P.I.I.).
Also because, like the Inter stadium, the stadium would have as many as 70,000 seats, and must be ready by 2028/2029. Perhaps more than Inter, AC Milan wants to have a commercial activity around it that is very much linked to sport, but without disdaining restaurants, a lively entertainment activity throughout the year. All covered by green spaces.
Living near the stadium, the Immobiliare.it study
To sum up, should the twin projects come to fruition, the two localities of San Donato and Rozzano could enjoy new commercial and residential life. Such constructions, which bring hundreds of thousands of paying fans each year, as well as tourist attractions, have always been a source of extra revenue for everyone, including the municipalities. So much so that the ambition of these places is also being felt in real estate, judging by the data from the Immobiliare.it study.
In its latest report, Italy's leading real estate services portal sought to compare the average cost of homes within a 20-minute walk of major Serie A stadiums with the average price in the relevant neighbourhood. The following historical stadiums were examined:
- Olympic Stadium in Rome,
- Meazza Stadium (San Siro) in Milan,
- Artemio Franchi stadium in Florence,
- Dall'Ara stadium in Bologna,
- Maradona Stadium in Naples,
- Gewiss Stadium in Bergamo,
- Bentegodi stadium in Verona,
- Ferraris stadium in Genoa,
- Allianz Stadium in Turin.
The result is that in all places where it is built, the price of the property is sometimes higher and sometimes lower than the neighbourhood average. This ranges from the case of the Olimpico, where buying a house costs €5,000 per square metre, compared to €5,500 in the rest of the district (-10%). And so in Florence, with prices in the vicinity of the Franchi at 4,100 euro/sqm, 400 euro less than the district average. On the other hand, Milan charges 6.4 per cent more if you want a house near San Siro (4,400 euro, against the average 4,170 euro).
How much does the economy grow near the stadium?
If on the real estate level the result is mixed, on the other hand there are more concrete possibilities for financial growth. According to the analysis conducted by the Lega di Serie A team, reported by Calcio & Finanza, it shows that many stadiums are backward but still promising in terms of investment. Even investments by football clubs alone, in the order of hundreds of millions of euro, can ensure greater safety in the facilities, and a reduction in violence of up to 80 per cent compared to before.
Not to mention the economic spin-off. The report mentions for new sports constructions in Germany a total turnover of around 12 billion, with attendance increased by 40 per cent. In terms of the expenses incurred by La Liga clubs alone, there is talk of 1 billion in stadium revenues over five years. Even in France they have led to the creation of 15,000 jobs.
If such investments were made in Italy (not only in the case of the stadiums mentioned above), over the next 10 years, with an increase in investment from 2.8 to around 4 billion, there would be at least 10 billion in business spin-offs, of which 1.5 went to the state coffers for stadium revenues alone. There would thus be the creation of 20,000 new jobs, as well as a 30% increase in attendance. An image that could become reality with the two new stadiums, at least as far as Rozzano and San Donato are concerned. But this will also depend on the type of investor.
