The Impact of the London Olympics Announcement on Property Prices

Posted: 13 Feb 2010 Last revised: 10 Jun 2012

See all articles by Georgios Kavetsos

Georgios Kavetsos

London School of Economics & Political Science (LSE)

Date Written: June 9, 2012

Abstract

This study estimates the impact of the London 2012 Olympics announcement on property prices. Using a self-constructed dataset of a sample of property transactions, it is estimated that properties in host boroughs are sold between 2.1 and 3.3 per cent higher, depending on the definition of the impact area. A similar investigation based on radius rings suggests that properties up to three miles away from the main Olympic stadium sell for 5 per cent higher. It is estimated that the overall impact on the price of properties in host boroughs amounts to £1.4 billion, having substantial social and financial implications for existing residents.

Keywords: Property Prices, Hedonic Model, Olympic Games

JEL Classification: H0, L83, R53

Suggested Citation

Kavetsos, Georgios, The Impact of the London Olympics Announcement on Property Prices (June 9, 2012). Urban Studies, Vol. 49, No. 7, 2012. Available at SSRN: https://ssrn.com/abstract=1552322 or http://dx.doi.org/10.2139/ssrn.1552322

Georgios Kavetsos (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

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