2012 Olympics could result in massive house price growth

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by Kay Murchie

Estate agency, Ludlow Thompson, has said that the 2012 Olympic Games in East London could boost property prices by £50,000 or even £100,000. The agency remarked that the redevelopment of the area will bring a flood of first-time buyers who cannot afford to live in the centre of London.

Transport links are being improved, for example the planned Crossrail train service is an incentive for investment and further capital growth.

A spokesperson for Ludlow Thompson commented that a 2-bedroom apartment could fetch £300,000-£350,000, whereas currently, you would get £250,000.

In conjunction with the above, an article by Impressions Magazine commented that the “Olympic effect” has occurred previously. Barcelona in 1992, Atlanta in 1996, Sydney in 2000 and Athens in 2004 – property prices in each city, except Atlanta, were boosted by transport upgrades, the development of first-class leisure facilities and overall regeneration.

Many reports highlighted that property prices rocketed by 63% in Athens in the 5 years prior to the 2004 games, while those in Sydney rose 50% in the same period before the 2000 games and those in Barcelona rose 131% in the 5 years before the 1992 games.