What’s happening to Olympic area property values?
July 27, 2011 at 10:02 AM Lawrence Hall Leave a comment
Olympic Stadium CGI
With one year to go till the London 2012 Olympics, we’ve looked into how property values have performed since London won the title as host city for the games.
There’s no doubt that the redevelopment to a number of areas across the UK as a result of the Olympics has had a positive impact on property prices. Much of the focus to date has been on East London but there are many other areas benefitting from the investment and attention of the Olympics.
Key findings:
- Property prices around Olympic sites up 11.9% since Games announced
- Outstripping average UK house price growth of 7.2% over same period
- London’s Olympic venues underperform overall strong growth in capital
- £30.8bn added to residential property values around Olympics sites
Property prices in close proximity to the UK Olympic venues have recorded an 11.9% increase since the Games were awarded to London in July 2005, outstripping the UK average of 7.2% over the same period, according to our data.
Over £30bn has been added to the total value of residential properties located in close proximity to the UK Olympic sites since the announcement, with £6.4bn in added-value to house prices in East London alone. The budget for delivering the Olympics is currently on target at £9.3bn with exactly one year to go.
Outside London, properties nearby seven of the ten major Olympic venues have recorded noticeably higher price growth than the surrounding areas. In Lee Valley, Hertfordshire where the White Water Centre has been developed for canoeing events, house prices have risen 12% since the announcement compared to 7.2% growth on average in the region. And in Eton Dorney, where the rowing facility has been upgraded to accommodate the Olympics, average home values have risen 14.3% compared to the regional average of 8.2%.
However, in London property values in direct proximity to the Olympic venues have underperformed having risen 18.9% since the games were awarded compared to overall house price growth of 27.2% in the capital since July 2005.
The underperformance of the London venues says far less about the Olympics than it does about the overall London property market which has outperformed the rest of the UK by a wide margin in the last few years. And it is unlikely that property in East London would have seen anything like the value growth it has recorded without the Olympics.
Change in property values in Olympic areas since July 2005 (%)
| Olympic Area | All Areas | |
|---|---|---|
| Inside London | 18.9% | 27.2% |
| Outside London | 7.8% | 5.1% |
| All UK | 11.9% | 7.2% |
Source: Zoopla.co.uk
Change in property values in Olympic areas outside London (%)
| Venue | Olympic Area | Region |
|---|---|---|
| Millennium Stadium, CA1 | 11.00% | 0.80% |
| City of Coventry Stadium, CV5 | 2.00% | -2.00% |
| Brands Hatch, DA3 | 9.60% | 7.20% |
| Weymouth & Portland | 6.80% | 6.30% |
| Lee Valley, EN9 | 12.00% | 7.20% |
| Hampden Park, G42 | 11.10% | 17.90% |
| Hampton Court Palace, KT8 | 16.70% | 7.20% |
| Old Trafford, M16 | 2.90% | -1.50% |
| Eton Dorney, SL4 | 14.30% | 7.20% |
| Hadleigh Farm, SS7 | 3.90% | 8.20% |
Source: Zoopla.co.uk
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Entry filed under: House Prices, Olympics. Tags: 2012 Olympics, London, property values.
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