The 2012 London Olympics Games serve as a cautionary tale for local communities in host cities - a new study warns.
The study by the University of Portsmouth analysed 20 years of data, from 2001 to 2022. It looked at the long-term legacy of the 2012 London Olympics, particularly the impact on urban regeneration in one of London's most disadvantaged areas. The research evaluated the effects of the Games on property pricing, sales, and broader urban changes in London's 656 electoral wards, with a focus on the Olympic Park area in Newham Borough.
Dr Christina Philippou , Associate Professor in Accounting and Sport Finance in the School of Accounting, Economics, and Finance , at the University of Portsmouth, said: "Our research found that the Olympic Park wards experienced only a slight, short-lived boost in property values and sales after the IOC announcement in 2005 and the 2012 Games. The bigger question is who actually benefited from these changes. The data points to patterns of gentrification and migration, suggesting the original local community may have been left out of the equation."
Our research found that the Olympic Park wards experienced only a slight, short-lived boost in property values and sales after the IOC announcement in 2005 and the 2012 Games. The bigger question is who actually benefited from these changes. The data points to patterns of gentrification and migration, suggesting the original local community may have been left out of the equation.
Dr Christina Philippou, Associate Professor in Accounting and Sport Finance
London's 2012 Olympic bid emphasised urban regeneration as a cornerstone of its legacy, promising to revitalise the Lower Lea Valley and provide long-term economic and social benefits to local residents. The original bid pledged to transform the area into a hub of education, culture, and employment opportunities, explicitly framing the Games as a catalyst for profound social and economic change.
In the early 2000s, Newham ranked as London's second-lowest borough in weekly earnings, making it a prime candidate for regeneration. The substantial public investments in transportation, sporting venues, and other infrastructure were seen as a pivotal opportunity to improve living conditions and access for East London communities.
The 2012 London Olympics serve as both an example of the potential legacy of the Games and a cautionary tale. While there were successes in urban regeneration, the benefits did not necessarily extend to the original local community. Future host cities must ensure their legacy promises are inclusive and measurable.
Dr Christina Philippou, Associate Professor in Accounting and Sport Finance in the School of Accounting, Economics, and Finance, at the University of Portsmouth
The study identifies several outcomes of the 2012 Olympics:
- Short-term economic impact: The Olympic announcement and Games boosted property prices and sales in the Olympic Park wards relative to the rest of London. However, the effects were short-lived and not as significant as anticipated.
- Gentrification and migration: Regeneration efforts resulted in demographic shifts, with the original local community not necessarily being the primary beneficiaries.
- Infrastructure and accessibility: While infrastructure improvements, such as expanded transportation links and the Westfield Stratford shopping centre, increased the area's visibility and accessibility, their direct benefits to the original residents remain unclear.
- Uncertain long-term legacy: The findings suggest that while urban regeneration was achieved to some extent, similar outcomes might have been realised through other development efforts not tied to the Olympics.
This study contributes to the growing body of research on the economic and urban impacts of mega-events like the Olympics. It highlights the importance of monitoring and measuring the long-term social, economic, and urban impacts of such events to ensure their promised legacies are realised.
Dr Christina Philippou , said: "The 2012 London Olympics serve as both an example of the potential legacy of the Games and a cautionary tale. While there were successes in urban regeneration, the benefits did not necessarily extend to the original local community. Future host cities must ensure their legacy promises are inclusive and measurable."
The study calls for further research into the long-term impacts of Olympic legacies, including venue usage, social housing availability, and employment opportunities for local communities. Comparative analyses across different host cities and continents could provide valuable insights into the global patterns and challenges of mega-event legacies.
To safeguard the legacy of future Olympic Games, the study recommends:
- Stronger monitoring and evaluation of social, economic, and urban impacts.
- Inclusion of mechanisms to prevent displacement and ensure benefits for original communities.
- Long-term commitments to legacy programs beyond the event's conclusion.
This study was conducted to assess the long-term impacts of the 2012 London Olympics on urban regeneration, focusing on economic and property market changes. It offers valuable insights for policymakers, urban planners, and future Olympic host cities aiming to create sustainable legacies.
