London realty prices rise on rugby touchdowns
There have been marked gains for all stadium surrounding locations
With the eighth Rugby World Cup kicking off on Friday, all eyes are on Twickenham Stadium where the opening game takes place.
We are talking about rugby lovers all around the world, especially in the 20 nations participating in this year’s tournament. But we are also talking about owners of properties around Twickenham Stadium and 11 more stadia in England and one in Wales hosting this year’s matches.
It is evident that such a celebrated sport event is helping to accelerate the appreciation of property values around the event’s venues.
Once a humble cabbage patch before being turned into a rugby stadium around 110 years ago, the development of Twickenham Stadium had an essential role to the urban and economic evolution of the area around it, Twickenham, part of outer London to the west.
The stadium is not only famous for hosting international rugby matches, but also for a few of the world’s most celebrated artists such as Rolling Stones, Bon Jovi, Lady Gaga and Rihanna.
However, this year’s tournament will have wider international attention adding to the economic role of the stadium, but most precisely to the already soaring prices in the area. Since the last Rugby World Cup in 2011, property prices in Richmond upon Thames, the London borough within which the stadium is, have grown significantly at 43 per cent.
Ostensibly, prices there have one more reason to continue rising.
On the opposite side of London City, the Queen Elizabeth Olympic Park houses another venue for the Rugby World Cup. It was been built specifically for the 2012 Summer Olympic Games, and since construction work began, the project was literally a catalyst for economic activity in the area.
Strong appeal
Over the period from the third quarter of 2011 to July 2015, housing prices in Newham, the borough within which the stadium is, have increased around 42 per cent, indicating the strong appeal of residential property in the aftermath of the project’s development.
It is worth mentioning that venues utilised for the 2012 event have since been turned into other uses and some areas are part of university campuses, technology parks, cultural and educational facilities and a 3,600-apartment village.
Property owners in Newham are no doubt sporting wide grins in welcoming the teams — even those owners who don’t like the game.
Of the three stadia hosting this year’s Rugby World Cup matches in London, Wembley is probably the most famous internationally. It has been under the lights for many events starting with the 2011 UEFA Champions League final to the 2012 Olympic Games football tournament, in addition to many concerts and festivals since its opening in 2007.
Housing prices around the stadium have increased around 23.5 per cent since September 2011 in line with price inflation in outer London.
Admittedly, in the other cities hosting the rugby event matches, acceleration of house prices are much less than those in London.
Film industry
However, the case of Milton Keynes seems to contradict this thumb rule. House prices here have seen 24.7 per cent growth since 2011 to the second quarter of 2015, ahead of Wembley’s 23.5 per cent over the same period.
Such a significant performance is attributed to another entertainment-related activity, which is the film industry. Milton Keynes in Buckinghamshire has been the main location of Benedict Cumberbatch’s award winning “The Imitation Game”.
Buyers, it is argued, have a vibrant appeal purchasing houses in towns and villages that have been in films.
Rugby fans attending a match at TK Stadium will have the chance to check up on houses featured in the film.
Other cities hosting World Cup matches this year include Brighton & Hove, where housing prices increased 20.6 per cent between September 2011 and June 2015 compared to prices in other host cities: Gloucester 17 per cent, Cardiff 12 per cent, and Manchester 10.2 per cent.
England, who won the Webb Ellis trophy only once in 1995, ranks fourth after South Africa, Australia and New Zealand, with each of three nations having won the cup twice.
While rugby lovers from all around will flow into the different host cities, each betting on his or her national team, property owners there will have already won their own bets.
The writer is part of Knight Frank’s MENA Research team.
