Big draw sporting events can have a dramatic impact on local economies, and even real estate values. The worldwide exposure that comes with hosting events like the Super Bowl, World Cup and Formula 1, comes with economic benefits that are realized before, during and even well after the event has ended. For more on this, read the following article from Property Wire.
The gripping start to the Formula 1 grand prix season is just a taster for the kind of effect prestigious sporting events can have on property markets it is claimed.
Countries can benefit from the experience of hosting global events like the Olympics and the America’s Cup regatta but also from annual sporting draws like motor racing, according to property investment analysts.
The biggest benefit for buy to let property investors is from increased global attention via television coverage which in turn encourages visitors who may be interested in property. For investors it is best to look ahead and see what events are coming to a particular area and buy while prices are low.
One example cited by James Gonzalez, market analyst at Obelisk Investment Property, is Donnington in the UK which will host the British Grand Prix next year. He points out that the area which has suffered an industrial downturn will benefit from the major domestic and international attention.
Abu Dhabi is another which doesn’t just host the final Formula 1 race of the 2009 season but also the country’s first. Its new track is regarded as a symbol of the huge potential in the emirate.
Formula 1 generates around $4 billion in revenue a year and not surprisingly, a number of locations are keen to host one of the races in the annual calendar. Last year saw Singapore celebrating its first ever Formula 1 race, an event that contributed significantly towards 2008 being a record year for tourist spending in the island city state.
Valencia was also a first-time host for Formula 1 in 2008, an event that has put the Spanish city firmly on the international sporting map. It will host the final stage of the 33rd America’s Cup next year.
As a key generator of income and jobs for an area, Formula 1 provides a major boost to any area,’ said Gonzalez. ‘Property is a main beneficiary since house prices tend to rise in the immediate area and there’s the obvious benefit for buy-to-let owners too,’ he added.
This article has been reposted from Property Wire. View the article on Property Wire’s international real estate news website here.