The Impact of the Pan Am Games on Toronto Real Estate
This summer, the long-anticipated Pan Am and Parapan Am Games will come to Toronto.
The city will see some 10,000 athletes from all over the world compete in sporting events. How will it affect Toronto Real Estate? Bringing the Pan Am Games to Toronto represented a $1.44 billion investment from all three levels of government.
So, what effect, if any, will such an important investment have on local Toronto real estate values? To come up with a prediction, let’s look at what effect the Olympic Games have had on some of the host cities.
Benefits to Local Economy
It is certain that bringing a significant sporting event like the Pan Am Games or the Olympics has a positive effect on the local economy. This effect is felt leading up to, and during the games through the construction of facilities and employment opportunities associated with the games. There was a development boon in British Columbia in anticipation of the 2010 Winter Olympics, which spurred the economy.
Improved Infrastructure & New Facilities
B.C. also saw some significant improvements in its infrastructure thanks to their games. Including the creation of the Sea to Sky Highway linking Vancouver to Whistler and a light-rail line connecting downtown to the airport. The area also saw the addition of several new or improved sporting facilities.
Similarly, in Toronto, we will have 10 brand new sporting facilities and 15 others that will be significantly upgraded for the 2015 Pan Am Games. We will also soon see the new Union Station to Pearson Airport express train line open. It is expected to open in time for the Pan Am Games.
Long Term Impact
Rob VanWynsberghe of the University of British Columbia conducted an Essaylamba.com study of the Olympics’ impact on the city for the International Olympic Committee. While the study acknowledged the benefits brought about by the improved infrastructure, it found that the games did not appear to have influenced the value of the real estate market.
Another study published in 2001 by Jones Lang LaSalle called “Reaching Beyond the Gold: The Impact of the Olympic Games on Real Estate Markets” seems to support this view. It found that the impact of the Olympics on the local residential market was not on prices. It was in the development of new districts and projects around the event. A distinction in their findings must be made. However, between the impacts felt in smaller, less developed host cities, such as Barcelona or Athens compared to that seen in larger cities such as Atlanta and Sydney.
The new Toronto real estate projects in the smaller markets were far more significant in those smaller cities. Therefore, had a much greater impact than in the larger centres where the construction projects were far less significant.
Based on those results, we can expect to enjoy the benefits of the new sporting facilities enhancing our neighbourhoods. As well as, the express train linking downtown to the airport. However, any increases we see in our real estate values will probably be attributable to other factors.