As the majority of us know, London has won the bid for the Olympics 2012 to come and be played in London. This is a great achievement for London especially in the eyes of many British to beat the French to it – made it even better!
London now has to prepare for the Olympics and the expected estimated figure of 8 million event tickets to be sold for the summer of 2012. The amount of people to be around in London is going to be absurd, especially with the current transport infrastructure. There is going to be a vast amount of money “pumped” into the Olympics by London (& the UK Government) and The International Olympics Committee (IOC) to help generate London into a state of an art Olympic accommodated city. Funding will be required to build new stadiums, to accommodate the vast amount of visitors and also to improve the current transport infrastructure of London.
These are rough forecasts of the costs and revenue for the London Olympics:
Costs:
* £560 million for new venues, including £250 million for the Olympic Stadium.
* £65 million for the Olympic village.
* £1.5 billion to run the Games.
* £200 million on security.
Revenue:
* £1.5 billion from a special Olympic National Lottery game.
* £625 million from a council tax surcharge of £20 per year for London households.
* £960 million from IOC television and marketing deals.
* £450 million from sponsorship and official suppliers.
* £780 million from ticket sales.
* £250 million from the London Development Agency.
* £554 million from licensing.
Further expenditure, notably that on infrastructure, will be counted as outside of the Olympic budget.
Figures taken from (http://en.wikipedia.org/wiki/2012_Summer_Olympics)
The main areas chosen for the Olympics to take place are in Stratford and Lower Lea Valley in London. These two areas are governed by Newham, and will be undergoing extensive cosmetic regeneration!
What does this have to do with Rent A Home London?
Simply because in our eyes this means a property value increase! Property developers have and will also spot this opportunity and have and will start to inject vast amounts of capital for further property developments in the East & South Eastern parts of Central London.
There has been an increase in Property Developments around the Royal Albert Hall near the “Excel” Exhibition & Conference Centre in London Docklands.
Why here? The Excel Exhibition & Conference Centre, is a confirmed host for the London Olympics – and it is planned to host boxing, judo, taekwondo, weightlifting and wrestling events.
The Excel Exhibition & Conference Centre London ExCeL-olympics-london
Property Developers are in the industry and know what will cause their properties to be sought after, thus having an impact on demand and eventually increasing their prices.
Following the trend here? We hope you are!
Well that is all for now – but we will be posting more up about the London Olympics and its relationship to the Property Market!
Some good up to date information about the London Olympics provided by the BBC - Olympics Section
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