Stadium city, how does it affect housing prices?

Those who are passionate about soccer could live right inside the stadium if they could. However, from a city perspective, building a stadium can have both positive and negative consequences. Indeed, one has to wonder about the implications of the two new stadiums that Inter and AC Milan are promising to build, almost 100 years after the founding of the San Siro.

Although negotiations are still ongoing, both of these constructions could significantly affect real estate values, perhaps even more than other current or future Metro projects. Even the portal Immobiliare.it wondered about the potential price development in the city in front of monumental architectural structures such as stadiums and recently published a report.

Inter and AC Milan: two new stadiums

70,000 seats, possibly 4 years to build. These are the first details of the stadium to be built in Rozzano, near the Milan center. Negotiations are still ongoing with the Kabassi family to purchase the land, but the mayor's office has already agreed by approving a regulation plan for the land. If all goes to plan, the new stadium should be ready by 2028/2029.

The thinking is already underway on how to develop the industry around the new stadium, which is set to rival the already historic San Siro. The inclusion of not only activities related to Inter, but also a sports center and a park accessible to citizens, as well as a museum and a store are being considered. Milan are also considering building their own stadium in San Donato. In addition to the stadium, it is planned to create a sports cluster with a stadium for 18 thousand seats. Unlike Inter, City Hall has not yet spoken out about an agreement to change the current plan for integrated intervention (P.I.I).

This is because, as with Inter, the stadium will have 70,000 seats and will need to be built by 2028/2029. Perhaps more than Inter, AC Milan want to have commercial activity around them, closely related to sport, but they are not giving up on restaurants and entertainment to be active throughout the year. All this will be covered by green areas.

Living near the stadium: a study by Immobiliare.it

To summarize, if both of these projects come to fruition, Rozzano and San Donato could get a new commercial and residential boost. Construction of this kind, which attracts hundreds of thousands of paying fans every year and is a tourist attraction, is always a source of additional revenue for everyone, including municipalities. So, the ambitions of these places are reflected in the real estate sector as well, judging by Immobiliare.it.

research data

In its latest report, Italy's leading real estate portal has compared the average cost of homes within a 20-minute walking distance of the main Serie A stadiums with the average cost in the corresponding quarter. The following historic stadiums were considered: the Olympic Stadium in Rome, the Meazza (San Siro) Stadium in Milan, the Artemio Franchi Stadium in Florence, the Dall'Ara Stadium in Bologna, the Maradona Stadium in Naples, the Gewiss Stadium in Bergamo, the Bentegodi Stadium in Verona, the Ferraris Stadium in Genoa, and the Allianz Stadium in Turin.

The result showed that in all the locations where the stadium is being built, the price of real estate is sometimes higher and sometimes lower than the average value in the neighborhood. For example, in the case of the Olympic Stadium, buying a house implies a cost of 5,000 euros per square meter, compared to 5,500 in the rest of the neighborhood (-10%). And in Florence, the price near Franca is €4,100/sqm, which is €400 less than the average cost in the quarter. In Milan, an additional 6.4% is required if you want to live near the San Siro (€4,400 vs. the average €4,170).

The highest costs are associated with Bergamo: if you buy a property in this area, it will cost 1,900 euros per square meter. Next to Gewiss, the cost will be €2,160, which is about 14% higher. At the same time, the most marginal savings, slightly higher than those at the Olympic Stadium, are seen near the Bentegodi Stadium in Verona, where the cost is only €1,780 per square meter, compared to €1,990 in the quarter (-10.6%).

How is the economy growing near the stadium?

While results are fluctuating in real estate, economically there are more concrete opportunities for financial growth. An analysis by a Serie A team cited by Calcio & Even investment by soccer clubs alone, to the tune of hundreds of millions of euros, can provide infrastructure with greater security and an 80% reduction in violence compared to previous figures.

And that still doesn't take into account the economic impact. The report mentions that new sports facilities in Germany provide a total impact of 12 billion euros, with a 40% increase in attendance. La Liga clubs stadium costs alone are €1 billion over 5 years. In France, this led to the creation of 15,000 jobs. If such investments were made in Italy (not only in the case of the stadiums mentioned above), over the next 10 years, with an increase in investment from €2.8 billion to around €4 billion, it would result in a minimum of 10 billion in commercial impact, of which 1.5 billion would come from stadium revenues to the State alone. It would also lead to the creation of 20,000 new jobs as well as a 30% increase in attendance. That vision could become a reality with two new stadiums, at least in Rozzano and San Donato. But this will also depend on the type of investors.