Rise in average asking prices for properties near Olympic event venues
Property in areas close to Olympic and Paralympic event venues in and around London have seen their average asking prices rise by up to 48% in the last 12 months and monthly rents have increased by 9%.
The Olympic effect has added an average £59,928 to property values, according to new research by FindaProperty.
The top spot is London SW1, home to The Mall and Horse Guards Parade, both of which will be used as Olympic venues, where average property prices have increased by 48% in the past 12 months.
Olympic events taking place here include beach volleyball, the marathons and the cycling road races. The average value of property in this exclusive area of the capital is now £1,499,952, up from £1,015,321 a year ago.
Asking prices of properties in West London’s Earls Court, where the volleyball competition will be held, rose 38%, adding £298,021 to the cost of homes in the area within 12 months.
Outside London, house prices in areas surrounding the venue for the Olympic and Paralympic Sailing competitions in Weymouth Bay and Portland Harbour in Dorset increased by 25%. Prices increased by £38,552 to an average £190,645.
Asking prices for renting a home near an Olympic or Paralympic event venue have also been affected with prices increasing by an average £152 per month, 9%, in the past year.
Tenants in Stratford, East London next to the 2012 London Olympic Park which is home to 10 event venues, can expect the highest Olympic let premiums with rents up 38%, £433, year on year, bringing the average monthly cost to £1,575.
In a similar vein, rental prices in Greenwich, south east London, where the North Greenwich Arena and Greenwich Park venues are located, have increased 32% , £523, in a year to £2,143 per month.
‘With so much excitement and hype around the Olympics and Paralympics, a Games venue raises the profile of an area and attracts investment in local business and infrastructure. It’s these two factors that can have a powerful effect on prices,’ said Samantha Baden, property analyst at FindaProperty.
‘We’d expect to see the value of property in some postcodes, for instance London’s SW1, increase in price irrespective of the Games, but this level of growth far surpasses expectations. The price of property surrounding Olympic venues jumped 14% in a year, while prices for the UK as a whole increased just 1%, highlighting a clear Olympic effect,’ she explained.
‘These Games are being touted as the legacy Olympics, but it won’t be just the world class sporting venues that remain after the curtains come down on the closing ceremony. Improved infrastructure and facilities in many of the newly developed Olympic sites, including London Olympic Park, are likely to help maintain demand for properties and ensure the recent surge in prices will not tail off once the Games end,’ she added.