Property Value Decline of the Day: -2.5 Percent
Bad news for London's poorest borough of Newham: property values there fell by 2.5 percent in the last year, even as they rose by 2.8 percent citywide, Bloomberg News reports. This after the city poured billions of pounds into a revitalization effort for the neighborhood, which will host a large portion of the 2012 Summer Olympic Games.
The area lacks amenities to draw home-owners, like schools and restaurants, according to real estate professionals. Instead, Newham is dotted with public housing projects, discount liquor stores, and betting shops. “There’s too many people here and too much crime,” shopkeeper Jahangir Alom told Bloomberg. “The population is moving to Stratford because of that.”
Hosting the Olympics doesn't always pay off:
Recent Olympic Games have done little to lift overall property values in some of the host cities, according to a study by New York University. Researchers studied the change in residential real estate prices in six Olympic host cities over 16 years and contrasted them with similar metropolitan areas. Only two of the hosts had a bigger rise in home prices, said the study’s author, Constantine Kontokosta.
Photo credit: Andrew Winning/Reuters