Breaking News

Tweet TWEET

London’s Olympic Home Prices Increase Less Than Rest of the U.K.’s Capital

Home prices close to London’s 2012 Olympic sites have risen less than the rest of the city since the Games were announced, as overseas buyers targeted more central districts, Zoopla.co.uk said.

Values for homes near the Olympic Stadium and the other venues in east London have climbed 18.9 percent since the city was awarded the Games in July 2005, the real-estate website said in a statement today. That compares with an average increase of 27.2 percent across the U.K. capital.

“The Olympic areas have done well, but they just haven’t matched central London,” Nicholas Leeming, business development director at Zoopla, said by telephone. “The London central market is driven by international demand, prompted by concerns about the euro zone and instability in the Middle East. London is perceived to be a secure financial, political and economic location.”

The Games of the 30th Olympiad will be held in the borough of Newham, the sixth-most deprived district in England, according to a government survey carried out in 2007. London won the right to stage the world’s biggest athletic competition after persuading the International Olympic Committee that the 9.3 billion-pound ($15 billion) event would help to regenerate neighborhoods in the east of the city.

In the past six years, residential property prices in the U.K. as a whole have climbed 7.2 percent, Zoopla estimates.

To contact the reporter on this story: Chris Spillane in London at cspillane3@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.