Paris and Milan, Olympics effect on house prices

Paris is preparing to welcome millions of visitors for the upcoming Olympics. And this has an effect on real estate prices. From 2019 to 2023, the neighbouring boroughs of Paris Saint-Denis, Île-Saint-Denis and Saint-Ouen-sur-Seine recorded, on average, a 22 per cent increase in prices per square metre, accompanied, however, by an average decrease in purchases and sales of 13 per cent. Comparing the property values of the districts most affected by infrastructure and redevelopment work for the Games, both in Paris and Milan (which will host winter construction in 2026), is Casavo.

In recent years, Paris has given rise to new projects related to sport, such as the Adidas Arena near Porte de la Chapelle, but also to transport: the extension of line 14 to the north and south was recently inaugurated, thanks to which it is now possible to reach Orly airport by metro. From an urban planning point of view, the areas most affected in view of the sports event were the Athletes' Village, a housing complex located in the municipalities of Saint-Denis, Ile-Saint Denis and Saint-Ouen-sur-Seine. Construction work on the Village began in 2022 and the area, after the competitions, will become a sustainable city district with housing, shops, facilities and green spaces. Indeed, Casavo data reveal a 31% increase in the price per square metre for Saint-Denis, from EUR 3,882 in 2019 to EUR 5,097 in 2023. Although more modest, Île-Saint-Denis also recorded a price increase reaching +22% (from €3,780 to €4,616). Saint-Ouen-sur-Seine closes this ranking, which recorded a +15.5% increase over five years, although starting from a much higher base price than the other two municipalities (from 6,257 euros per square metre to 7,230 in 2023).

The increase in prices does not go hand in hand with the tren of buying and selling. Saint-Denis saw a decrease of 13 per cent over the period, for Île-Saint-Denis the drop was 14 per cent, and in Saint-Ouen-sur-Seine sales fell by 11 5 per cent.

At the same time, Milan is undertaking significant urban redevelopment and infrastructure development projects, and the two neighbourhoods affected by the construction of new facilities are Santa Giulia, where the Pala Italia sports hall will be built, and Scalo Porta Romana, where the Olympic Village, which will later be converted into a student residence, will be located.

For the Santa Giulia Nord district, the redevelopment project has led to a 27% increase in prices per square metre over the past five years (from €2,329 to €2,960). Considering instead Scalo di Porta Romana, prices per square metre have risen by 48% (from €3,296 to €4,845) compared to 2019.