One formula for property investment
International sporting events are proven drivers behind investment - property and infrastructure - in a city or country with the benefits of the event experienced for years afterwards. One of the world's biggest annual sporting events and the most widely watched is the Formula 1 Grand Prix, which recently began its 2009 season at Melbourne...
Formula 1 generates around £2.7 billion in revenue a year and not surprisingly, a number of locations are keen to host one of the races in the annual calendar.
Last year saw Singapore celebrating its first ever Formula 1 race, an event that contributed significantly towards 2008 being a record year for tourist spending in the island city state. Valencia was also a first-time host for Formula 1 in 2008, an event that has put the Spanish city firmly on the international sporting map - Valencia held the 32nd America's Cup in 2007 and will host the 33rd Cup next year.
2009's newcomer to the Formula 1 circuit is Abu Dhabi whose bespoke race track, Yas Marina Circuit, will host the final race and crowning of the 2009 champion. Investment in the purpose-built circuit is on a par with the cost involved with building the new Wembley Stadium and the first race at the end of October this year is expected to draw crowds of around 50,000. The track will promote the massive new property development that has recently taken place in Abu Dhabi and the UAE in general.
In 2010, it will be the UK's turn to showcase a new track with the British Grand Prix to be held at Donington Park rather than Silverstone. Already the host of several motorcycling championships, Donington Park is undergoing an upgrade to allow the circuit to cater for the larger crowds, higher security standards and corporate hospitality that accompany a Formula 1 race. As a motor racing circuit, Donington Park is expected to attract major international and domestic interest to an area that has recently suffered an industrial downturn.
"As a key generator of income and jobs for an area, Formula 1 provides a major boost to any area," comments James Gonzalez, Market Analyst at Obelisk Investment Property. "Property is a main beneficiary since house prices tend to rise in the immediate area and there's the obvious benefit for buy-to-let owners too."
Source: Obelisk Investment Property