Predictably, according to the study, the price of real estate typically increases before the Games in host cities, as it did by 19% in preparing for the 26^th Olympic Games in Atlanta, and by more than 10% per year in Sydney for the 2000 Olympic Games. The same is true for London, which saw CRE transactions of almost $5.8 billion in the first quarter of 2012, an increase of 42% from the fourth quarter 2011. Rio is spending billions on its preparations, and has the demand to follow the investment, with investors now gaining 10% yields on properties.

However, Sydney has seen a steady decrease in real estate prices since the Games. Atlanta didn’t hold onto its growth rate, being passed by other core cities before the recession, and now has one of the worst office vacancy rates at almost 25%. Most cities that have hosted the games have spent more than predicted on infrastructure and development, at times to the consternation of citizens because of the resulting budget cuts.

Time, and the progress of debt cleanup in Europe, will tell if London can hold onto its strength as a core CRE market. Brazil has experienced massive growth due to factors such as an expanding middle class, and may also continue improvements regardless to the Games. Both cities are focusing on the Olympics to showcase their world image, but the true outcome will likely be measured by market factors, and not torch-wielding athletes.