Form or Function? The Impact of New Football Stadia on Property Prices in London

36 Pages Posted: 15 Sep 2010

See all articles by Gabriel M. Ahlfeldt

Gabriel M. Ahlfeldt

London School of Economics & Political Science (LSE) - Department of Geography and Environment

Georgios Kavetsos

London School of Economics & Political Science (LSE)

Date Written: September 1, 2010

Abstract

This paper focuses on the channels through which stadium externalities capitalize into property prices. We investigate two of the largest stadium investment projects of the recent decade – the New Wembley and the Emirates stadium in London, UK. Evidence suggests positive stadium externalities, which are large compared to construction costs. Notable anticipation effects are found immediately following the announcement of the final stadium plans. Our results emphasize the role stadium architecture plays in promoting positive spillovers to the neighbourhood. We therefore recommend public funding of large‐scale sports facilities to be made conditional on a comprehensive urban design strategy that maximizes the external benefits.

Keywords: property prices, stadium impact

JEL Classification: R53, R58

Suggested Citation

Ahlfeldt, Gabriel M. and Kavetsos, Georgios, Form or Function? The Impact of New Football Stadia on Property Prices in London (September 1, 2010). Available at SSRN: https://ssrn.com/abstract=1676928 or http://dx.doi.org/10.2139/ssrn.1676928

Gabriel M. Ahlfeldt (Contact Author)

London School of Economics & Political Science (LSE) - Department of Geography and Environment ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

HOME PAGE: http://personal.lse.ac.uk/ahlfeldg/

Georgios Kavetsos

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

Houghton Street
London, WC2A 2AE
United Kingdom

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