AbstractAs the magnitude of globalization deepens, the competition between major cities in the world has also heightened mostly in regard to the selection process in the hosting of major sporting activities. This is based on the fact that these global events present the host cities with not only an excellent chance for economic advancement but also an ideal platform to stage themselves to the wide global audience (Mckay & Plumb, 2001). The Olympics games have a long history and they have become a center of spectacular display in regard to sports. They play an important role in bringing together athletes from all over the world to participate in these famous events which are held after every five years.
Their importance is evidenced by the fact that every athlete works hard to participate in them and when given a chance, this is usually a dream come true. This global sporting event has evolved to become one of the most imperative activity in the sporting calendar since its instigation in Athens in 1896 (Essex & Chalkley, 2003). Perhaps this phenomenon is best epitomized by the 2000 Sydney Olympics which according to Mckay and Plumb (2001), estimates reveal that this were the most watched event in history with around 3.7 billion people of the overall 4 billion world population tuning to watch the events at one point or another during the 16 days of the events.
It has also been pointed out that these events often pose great impacts, both positive and negative to the host countries. The analysis in this paper will focus on the effects of the events on property market. It will entail a comparative analysis of before and after the events.
Keywords: Olympic Games, Property market/pricesBackground of the Olympic GamesThe first Olympic events were held in Athens in 1896 and managed to attract 311 athletes from 13 countries. In the recent past, the Olympics event in Sydney, Australia had a massive involvement, attracting 10, 651 athletes from 199 countries. In the commercial sense, there was a ticket sale of 6.7 million coupled with 3.7 billion viewers from the televisions. This shows the importance and the impact of these games both to the commercial and social world (Essex & Chalkley, 2003).
The following graph shows the number of viewers in various Olympic events. Figure 1.0: Number of viewers in the past three Olympic GamesSource: Don, C., 2010Despite the fact that there were no profits that were earned from hosting the Olympics before 1984, Cashman (2002) pointed out that these events in the present times leave massive impacts on the host cities with this impactful trend elevating since 1984. These games have evolved to attract increased athletes, games categories and intensified sponsors and media presence, which continue to heighten the expectations on hosting the events.
Mckay and Plumb (2001) noted that despite the fact that the short-term effect of the Olympic games on the host countries are associated with the generation of revenues and jobs, the most robust impacts are associated with the longer-term changes in the host cities which take diverse forms. These includes but not limited to impacts on urban regeneration, creation of Olympic villages, growth of conventional business and tourism and enhancement of the infrastructure among other impacts.