Do world-class sporting events really inflate property values in the host city, or is it just real estate hype? The record says they do.
Certainly, owners of properties in London, hard hit by the market slowdown, will be hoping for the best, with the Olympic Games scheduled for 2012.
Indeed, some may be banking on it. During the height of the downturn in 2008, one reader of a property advice column cited Beijing, previous host of the world's most prestigious sporting event, where prices reportedly rose by up to 40 per cent. Surely, the London Olympics would have a beneficial effect on his flat's value?
With the Games now less than two years away, latest research by Lloyds TSB indicates a mixed bag. The research measured house-price performance in 14 districts near the Olympic Park since the city was awarded the Games in July 2005. It found gains of 69 and 53 per cent respectively in Homerton and Shoreditch, significantly above the Greater London average of 36 per cent.
However, in Stratford, home of the Olympic Stadium, there was only a 3 per cent increase in average prices - slower than any of the other Olympic districts.
Suren Thiru, a housing economist at Lloyds, believes the sharp rises are partly due to the regeneration taking place in certain areas, sparking increased interest from homebuyers and investors.
