Real estate in Paris: the potential impact of the 2024 Olympic Games
Real estate in Paris: the potential impact of the 2024 Olympic Games
As one of the biggest global events set to take place after the Covid-19 pandemic, the 2024 Summer Olympics will definitely leave a major impact. Especially in the city of Paris. Even now, experts are already predicting what the Paris Olympics will mean for the city's real estate. They include a major spike in prices, the rise of the Paris suburbs, and more.
An expansion of Paris
To be able to host the 2024 Summer Olympics on a grand scale, various urban projects are underway to help expand Paris. These include the stadiums and arenas that will be set up near the French capital's most famous monuments (i.e. the Porte de la Chapelle arena, the Champ de Mars Arena, etc.). As are the new commercial centers and residential districts throughout the Île-de-France region that will host athletes and fans alike. And even the Grand Paris Express, a new rapid transit system that will extend the Paris metro.
Perhaps the most notable of these urban projects is the construction of the Athletes' Village. Covering the three municipalities of Seine-Saint-Denis (L'Isle-Saint-Denis, Saint-Denis, and Saint-Ouen) and spread over 50 hectares, this will serve as the athletes' main accommodations throughout the event. The village will include around 2,200 housing units and 125,000 square meters of commercial spaces. After the Paris Olympics, these spaces will turn into offices, shops, restaurants, and more for the benefit of the Paris suburbs locals. Even the 2,200 housing units will also be converted to new apartments, further expanding Paris real estate beyond the main 20 arrondissements.
The Seine Saint Denis a new emerging point
Known as the “9-3” area, the Northern Suburbs of Paris is a relatively unknown district outside of France. Most tourists know of the 20 arrondissements of Paris, but not this part of the French capital. So it's pretty noteworthy that the Saint-Denis district will play a huge part in the 2024 Paris Olympics. More than just the location of the Athlete's Village, the Summer Olympic Games will also start bridging the gap between the Paris suburbs and the 20 arrondissements. Barbara Castillo Rico, head of economic research at Meilleurs Agents, said that the three new metro lines (Grand Paris Express) will serve the Saint-Denis-Pleyel stop near the Olympic Village (15, 15, 16, and 17). “Neighborhoods near future stations are destined to increase in value,” explained Rico.
She also pointed out that Saint-Denis and the other Paris suburbs already have massive potential. “The investors are already here. Many companies and students have already settled here. So it's only a matter of time before the northern suburbs catch up to Paris real estate. Especially since the rental market is dynamic again after a vacuum during the first restrictions.” she relayed.
Prices that will skyrocket around all new stations
Studies have already shown that the arrival of the Super Metro will drive up real estate prices. Rico further explained, “Prices in areas impacted by the arrival of Greater Paris have increased by an average of 17% over the last five years. And prices around stations have increased by 25%. According to the new Meilleurs-Agents Observatory, real estate prices at the 18 stations on Line 15 are expected to increase by an average of 29% by 2030.”
In any case, given their development and purchasing power (€4,200/m2 in Saint-Denis and €10,300/m2 on average in the capital), these municipalities are grabbing more and more attention. In turn, other districts near Paris are gaining potential too. Investors have identified six communes that could benefit from the Olympic effect, all of which will also benefit from the Grand Paris Express. Within a decade or so, they're expected to add significant real estate value in Seine-Saint-Denis.
Returning to the 2024 Paris Olympics, Michel Platero, president of the Fnaim du Grand Paris, also predicts the rise in tourist accommodations upon the event. "Airbnb accommodations and other short-term rentals should be successful again thanks to the Olympics". he explained.
By establishing the link between the announcement of the Paris 2024 Olympics and the rise in real estate prices that the Paris market has been seeing since 2017, all cities are now called upon to host the games. The prices per square meter in these locations have all increased, contributing to a growth that's even higher than that of the entire region.
More than 20 municipalities will host the Olympic games, creating many investment opportunities throughout the Île-de-France region. Investing in Paris is not one of them. The current real estate market in the capital offers particularly high prices per square meter. As such, investment opportunities are most favorable in the Seine-Saint-Denis department. Paired with its upcoming significant role in the Paris Olympics (i.e. Athletes' Village, competition venues, training venues, etc.) and the transformation of its urban landscape, property prices here can rise by 2024. And even more so when the housing properties will be open to the public after the event.
- Many urban projects are planned for the 2024 Paris Olympics
- Prices will potentially increase around locations that will host the event.
- The Northern Paris Suburbs will be further developed and thousands of new homes will be built
- Construction of the Athletes' Village will cover around 50 hectares
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Posted on 01/09/2022 by
Andy LECUYER
