JLL predicts pronounced economic impact from 2012 Olympics

Jones Lang LaSalle's annual predictions event this morning has forecast that the 2012 Olympics will have a more pronounced economic impact on London than previously expected.

JLL director Katie Kopec said that the economic benefits can be significant with Barcelona's GDP growing by 2.9% following the 1992 Olympics and Sydney 2000 providing the Australian city with a 2.1% GDP rise.

But as recently as four years ago Kopec said she would have had no hesitation in saying the impact on London would be minimal with the size and maturity of the capital's property market "absorbing the event".

However, can the same be said today?

"Indeed we would hazard a guess that the overall impact will be greater and the relative impact more pronounced," argued Kopec.

Her reason is due to UK-wide growth predictions being downgraded at the Autumn Review in October coupled with the ability of an event like the Olympics to place a global spotlight on London and UK PLC.

During Sydney 2000 it was estimated 3.7 billion of the world's then 6.6 billion population tuned in at some point during the Games.

It is forecast that 98% of the world's population with access to media will tune into the event at some point next year.

Overseas money has already been attracted to East London through the likes of the Athletes Village deal - sold to Delancey and Middle Eastern investor Qatari Diar for £557m.

Kopec says that the 2012 Olympic Games can be a more significant catalyst for regeneration in East London compared with any previous Games.

She says that with the exception of the DLR extensions and East London Line upgrades all the infrastructure was there to help support the transformation of the area.

Stratford was already a well connected location accessible to 75% of London's major hubs within 25 minutes and 7 minutes to Kings Cross.

"All very impressive when considering the potential capacity to expand," she said.

"And that is without bringing the bus, road and very importantly, air links, into consideration."

Kopec added that the Olympic Park will change the perception of East London, establishing it as an attractive family housing location.

But she concludes that bringing in social infrastructure will be key to the success of the area in the future.

To support the family housing, she says the area will need a supply of new schools, health and leisure facilities.