The city of Paris is has just hosted the 2024 Summer Olympics, while Milan is gearing up for the 2026 Winter Games along with Cortina. These events not only attract media, tourist, and sporting attention but also represent a great opportunity for the construction and property sectors and stimulate important discussions on urban sustainability. Casavo, a company specialising in property buying and selling solutions, has examined the impact of redevelopment works in the areas involved in the sporting events.
Olympics 2024 and 2026: Property market forecasts for Paris and Milan
"Paris and Milan have been bustling with preparations for significant international events, and both cities are witnessing an increase in price per square metre in areas undergoing major urban developments," summarises Victor Ranieri, Chief Revenue Officer of Casavo. "However, there are notable differences in the number of property transactions during the period 2019-2023, which we analysed. These transactions have decreased by an average of 13% in the neighbouring municipalities of Paris, while they have significantly increased in the Milanese districts of Santa Giulia and Porta Romana, by 28% and 40% respectively."
What are the reasons for this difference? "These figures can be attributed to a deliberate choice," Ranieri explains. "In Milan, the areas involved in constructing athlete facilities are more central and strategic for the city's future, whereas Paris has chosen to focus on neighbouring municipalities, likely due to the already excellent connections to the city centre."
What will be the real estate consequences of the 2026 Winter Olympics on Milan's property market? "Milan still has two years to prepare optimally and leverage the opportunity to revitalise its urban fabric. It's likely that these large projects will further drive up the price per square metre in the affected districts. Therefore, it will be crucial to maintain the right balance between investment and accessibility to preserve a market that already presents many barriers for prospective buyers."
Rising prices in the Athletes' Village in Paris
In recent years, Paris has initiated new sports projects, such as the Adidas Arena near Porte de la Chapelle, and transport projects like the extension of metro line 14. The main areas affected are those of the Athletes' Village in the municipalities of Saint-Denis, Île-Saint-Denis, and Saint-Ouen-sur-Seine, where work began in 2022. After the competitions, the Village will become a sustainable neighbourhood with housing, shops, and green spaces. Paris has implemented strategies to reduce CO2 emissions and make the most of existing infrastructure.
Regarding the property market, these three municipalities have seen an increase in the average price per square metre. According to Casavo data, Saint-Denis has experienced a 31% rise, from €3,882 in 2019 to €5,097 in 2023. Île-Saint-Denis saw a 22% increase, from €3,780 to €4,616, while Saint-Ouen-sur-Seine recorded a 15.5% increase, from €6,257 to €7,230 per square metre.
However, property transactions did not follow the same trend: Saint-Denis saw a 13% decrease, Île-Saint-Denis 14%, and Saint-Ouen-sur-Seine 11.5%. Interestingly, Saint-Denis is the only one of the three municipalities where the selling times have shortened, with an 18% decrease, while Île-Saint-Denis and Saint-Ouen-sur-Seine have seen increases of 60% and 168% respectively.
Surge in property transactions in Milan's Santa Giulia and Porta Romana
Simultaneously, Milan is advancing significant urban redevelopment and infrastructure enhancement projects, focusing on environmental and economic sustainability. The districts of Santa Giulia and Scalo di Porta Romana are at the forefront, featuring the new Pala Italia sports arena and the Olympic Village, which will later be converted into student housing.
The redevelopment project in Santa Giulia Nord has led to a 27% increase in the average price per square metre over the past five years, rising from €2,329 to €2,960. In Scalo di Porta Romana, prices have surged by 48%, from €3,296 to €4,845.
Unlike Paris, Milan has seen a significant increase in property transactions: Santa Giulia recorded a 28% rise, while Scalo di Porta Romana saw a 40% increase. The selling times in Santa Giulia Nord have decreased by 28%, from 134 to 97 days, whereas in Scalo di Porta Romana, the change has been minimal, with a 3% reduction over five years.
