Investors need to believe London is confident in its long-term future. How better than by bidding for the 2040 Olympics, asks Jace Tyrrell
For many in London, the Paris Olympics have brought back fond memories of 2012, while also reminding us of the Games’s unique power to supercharge investor interest in cities. So why don’t we go for it again?
London’s Mayor Sadiq Khan has already pushed for more sporting investment and is looking to get Prime Minister Keir Starmer to back a potential bid for the summer Olympics in 2040 – with a keen eye on positioning the capital as the “undisputed sporting capital of the world”.
Considering how London turned the 2012 Games into gold, there is a strong allure in the positive potential to enhance our global reputation and extend our city’s legacy. During the 2012 games, the UK economy saw a £9.9bn trade and investment boost. This ‘Summer of Sport’ spurred on a staggering £2.5bn boost in foreign direct investment and £10bnn worth of inward investment and trade deals, according to the 2012 Games meta-evaluation report.
The regeneration of London’s eastern boroughs, through the transformation of the Olympic and Paralympic Village into East Village flats, commercial and mixed-use opportunities, incentivised real estate and financial interest in the Games. In this sense, the Olympics can put a city front and centre in investors’ minds, and provide long-term economic sustainability.
There have been varying views of late about London as a destination for investment. However, having returned from a global trip spanning four continents in six weeks, I have been provided with many reasons to be optimistic about investor interest in London which has bolstered my belief that we could and should take up the mantle in 2040. I encourage everyone to rally around the idea in a bid to bolster London’s productivity and economic competitiveness – and to make it even greater than 2012.
Travels across the Middle East to Australia, North America and Europe provided those of us at Opportunity London with a well-rounded view on how London is fairing on the world stage – and the signs are cementing business confidence in the UK. It was encouraging to see almost all investors taking a long-term view on London and recognising its resilience.
As we met with investors, the prospect of a Labour government, which is now in place, was viewed favourably against growing political instability in other global markets.
As a whole, the UK shows high levels of liquidity as the second most traded global real estate market in the world in 2023, according to our research partner JLL, with transaction volumes exceeding £31.3bn and only shortly behind the US. Their interest in the city’s status as a hotbed for creativity, talent and potential – where capital could unlock key infrastructure and real estate projects to support further growth – could support our ambitions to be known as a major sporting city and region. We already have a talent pool and workforce which is worthy of competing on a global stage.
With the positive sentiment and energy that comes with a newly elected government, let’s be bolder about London’s investment potential. Momentum can be strengthened by de-risking London further with a 2050 critical infrastructure plan. Investors want to see how London can provide a long-term strategy for low carbon housing, infrastructure and energy. With our newly appointed Chancellor, Rachel Reeves, calling for £3 private sector investment for every £1 the government invests, public/private partnership is a clear priority that creates opportunity for further inward investment. Labour’s commitment to growth through housebuilding, clean energy, infrastructure and education highlight the potential for billions of pounds of investment into the capital. Investors are watching and are ready to invest. What is needed now is encouragement and certainty so that investors press the button. Going for London 2040 is one way to show we are confident about the decades ahead.
Jace Tyrrell is the CEO of Opportunity London