Magazine article Journal of Property Management

Irem International Members Discuss the Impact of Global Sporting Events

Magazine article Journal of Property Management

Irem International Members Discuss the Impact of Global Sporting Events

Article excerpt

Global events like the World Cup or the Olympics can have an incredible impact on a city, especially when it comes to property management. Based on their experiences, some of our international IREM Members shared their thoughts on how these events have affected property management in their respective cities.

SOUTH AFRICA

Estate agents, property managers and property owners in South Africa have had high expectations regarding potential business opportunities expected from tourists during the FIFA World Cup. The expected benefits have not been realized in the short term; however, there are signs that the tournament could give our real estate industry the boost it requires in the medium or long term.

Here are the latest figures released: Tourism South Africa expects the country to earn $27 Billion ZAR (Approximately $130 Million U.S.) from the FIFA World Cup tournament. Statistics have shown a significant increase in tourists' expenditure during the World Cup. The government recorded about 1 million visitors entering the country between June and July- the majority coming from nearby African countries.

Major African host cities such as Johannesburg, Cape Town and Durban have benefitted substantially, while the effect in the minor host cities was marginal. Consequently there have been reports of wealthy tourists and international celebrities looking for luxury homes in up-market suburbs, seaside holiday homes and game farms. Property managers in leisure properties such as hotels and guesthouses recorded good occupancy rates.

For the average property manager, the expectation is that the World Cup will have a positive effect on the local economy by marketing the country as a safe investment haven, bringing foreign direct investment, and creating stable jobs and a strong middle class sector to drive demand. From a financing perspective, the timing is perfect as interest rates are very low.

Thuto Mosholi, CPM®, Candidate Valuer and Commercial Property Consultant, M Property Practice, Sasolburg, South Africa

CANADA

As a real estate professional, you watch an Olympic Games from the perspective of both a business person and a fan. The former can be frustrating while the latter can be exhilarating. As a proud Canadian, it was a wonderful experience to show the world our beautiful city and to cheer on our athletes. In terms of property management, the Olympic Games themselves get a mixed review.

Vancouver was awarded the 2010 Games in 2003. Like previous Olympic games, standard business practices, and planning and budgets were either modified or disregarded to ensure that venues were ready on time. …

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