The announcement of hosting the 2024 Olympic Games in Paris has sparked enthusiasm and excitement throughout France. This iconic global sporting event not only signifies the celebration of sports but also leaves a significant imprint on the real estate market of the host city.

1.The Impact of the Event on Real Estate

For over two decades, a recurring phenomenon has been observed: after the Olympics, the price per square meter has experienced a significant increase. For instance, after the 2021 Tokyo Olympics, it increased by 22%, in London in 2012 by 24%, and in Athens in 2004 by 14%. On average, this increase hovers around 17%.

In 2016, in Rio, the positive impact of the Olympic Games even managed to reverse the downward trend in real estate prices that had persisted for five years in the city. This was seen as a welcome sign of hope for Parisian property owners, especially since the price per square meter in Paris had experienced a 4.5% decline in a year. Thus, Parisians hope to benefit from the Olympic effect by selling their property at a significantly higher price. This opportunity is particularly attractive in the current real estate crisis, characterized by a 52% decrease in loan requests in one year (source: CSA-Credit Logement), a substantial reduction in borrowing capacity (-30%), and increased requirements from banks regarding buyer equity.

2 Massive Investments in Infrastructure

The investment in Olympic infrastructure is colossal, with planned expenditures reaching nearly 3 billion euros. Major projects include the renovation of the Stade de France, the construction of an Olympic village, and the modernization of public transportation. These massive investments stimulate the economy and promote the creation of thousands of jobs. They also lead to an increase in the value of real estate in areas near Olympic sites. For example, according to recent estimates, housing prices near the Stade de France have already increased by 10% since the announcement of the event.

3.Increase in Short-Term Rental Demand

During the Olympic Games, Paris is expected to host over 600,000 international visitors. This influx creates an extraordinary demand for temporary rentals, such as apartments, houses, and vacation rentals. Owners who rent out their property during this period can expect substantial income. In anticipation, an average apartment in Paris could rent for between 100 and 200 euros per night during the Games, potentially generating thousands of euros in additional income for property owners.

4.Long-Term Effect on Paris’s Appeal

The Olympic Games are not just a two-week event; they leave a lasting legacy. Paris, already an attractive city, will gain even more global visibility thanks to the Games. This increased fame can attract more foreign investors and permanent residents, thereby stimulating the Parisian real estate market in the long term. Improved infrastructure, modernized transportation, and investments in surrounding neighborhoods will also contribute to enhancing the quality of life in the city, attracting more people to settle in Paris.

5.The Need for Planning and Forethought

While the Olympic Games can bring many benefits to the real estate market, careful planning is essential to maximize opportunities. Property owners, investors, and local authorities should work together to ensure that short-term benefits translate into lasting advantages for the city and its residents.

In conclusion, the 2024 Olympic Games in Paris are not just a sporting event but also an opportunity to boost the city’s real estate market. With massive investments in infrastructure, an increase in demand for short-term rentals, and enhanced long-term appeal, the Olympic Games leave a positive imprint on the Parisian real estate market, strengthening Paris’s position as a global destination of choice.

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