In almost two years, the 23rd Summer Olympic and Paralympic Games will be held in Paris. The competition will be hosted by the capital and more than twenty cities (in Ile-de-France and in the region). This long-term training almost always rhymes with the construction of sports facilities, the reconstruction of existing equipment and the implementation of large-scale urban planning operations aimed at creating or rebuilding neighborhoods. This sporting event has given impetus to the construction of the Grand Paris Express (GPE), this future 200-kilometer vehicle that will irrigate the entire Paris region with 66 new stations.
Even if we know that the two lines (16 and 17) of this future supermeter will not be delivered on time to the Olympic Games, their commissioning in 2026 will improve the service of the respective cities. This asset should make them more attractive to live and move. Published in late 2021 by notaries in Greater Paris, a study on this topic analyzes real estate markets located within a radius of 800 meters around future stations and in a wider perimeter at a distance of 800 meters to 1.5 kilometers.
It turns out that this major infrastructure on the scale of Ile-de-France “does not currently affect the prices of old housing”, adding that “urban restructuring, being progressive, is accompanied by troubles that are likely to differ from the appraisal phenomenon.”
93, well served!
If we observe the evolution of prices in the municipalities that will host both the Olympic Games and the GPE, we really notice quite different courses. There are already winning cities that have already taken advantage of this double effect and will continue to transform over time. This already applies to several cities in 93, a department that is an important base in the organization of games. At the forefront we see Saint-Denis, which together with the Stade de France, the future water center and the village of athletes (the cities of Ile-Saint-Denis and Saint-Ouen) will be the main place.
In addition, this city will be a “hub” of public transport, as in addition to metro and RER lines will connect four GPE lines (14, 15, 16, 18). “In two years, prices almost everywhere in the city have almost doubled, while there is still a significant influx of investors attracted to values that are still attractive to the municipality bordering Paris. They love old homes with work, ”said Patricia Cohen, director of Stéphane Plaza Immobilier in Saint-Denis.
“The city is attractive because it is dynamic, young, close to Paris and has many development projects,” he added. This increase in values affects areas that have been directly affected by the Olympics. Thus, at the end of March, “Plen Stade de France” and “Saint-Denis Player” rose in price by 12.6% and 11% respectively over the year, “said Michel Platero, president of Fnaim du Grand Paris.
Focus on neighboring cities
Due to the effect of the infection, neighboring cities will benefit, as Panten, Saint-Ouen and Oberville will benefit from this impulse. In the latter city, prices are rising. “Still relatively cheap, m2 costs about 4,200 euros in some sectors, which is 20% more than 2 years ago. We continue to look for our investor clients in this area, as the city that will eventually be served by GPE must continue to thrive, ”said Lior and Rafael Pardo, co-founders of Investing in the Old. A little further, but on the GPE route La Courneuve and Le Bourget may be cities with great potential. Over 5 years, their respective values increased by only 9% and 15.5%.
In the 92nd Nanterre will host several disciplines, including the Arena, and in 2030 there will be two new stations line 15 GPE (La Boule and La Folie) and RER E. In 3 and 5 years real estate in the prefecture of O-de- Sen received 13.1% and 19.5% respectively. Attractive because this city, just a few steps from La Defense and Paris, still has potential for development.
In the same department, expensive and more residential municipalities, which already have a strong reputation, such as Boulogne-Billancourt and Colomb, are already announcing high prices, which may be less affected by the double effect of the Olympic Games and GPE. The same analysis for Versailles in 78.
Rent under supervision
Before buying, investors should be informed about the presence (or absence) of control over the lease. The event is held in Paris, Plen-Commune and Ensemble, two organizations, each of which unites 9 cities in the 93rd.
In the capital, which will be the epicenter of competition with 12 sites, market prospects are more measured given the already high level. Even if prices start to fall slightly, wealthy foreign clients may return by deciding to invest in luxury real estate, in particular to take advantage of the Games.
According to the latest Barnes International Cities Index, Paris is one of the five largest cities in the world, popular with wealthy households and international investors. In addition to its historic location, the City of Light is still “cheap” compared to other capitals such as London, New York and Tokyo.