World Cup Real Estate Impact: Case Studies from Brazil, Qatar, and Insights for Saudi Arabia

Hosting the FIFA World Cup is a transformative event, often reshaping a nation’s infrastructure, tourism, and real estate markets. 

This study examines the impacts of the World Cup on Brazil (2014) and Qatar (2022), focusing on the real estate sector before, and during the event. 

Using these insights, we’ll explore potential outcomes for Saudi Arabia’s real estate market as it prepares for the 2034 World Cup.

Case Study: Brazil 2014

Before the World Cup

Brazil’s preparation for the 2014 World Cup brought ambitious promises of growth, fueled by an $11 billion investment in infrastructure (Colliers International, 2014). 

Major cities like São Paulo, Rio de Janeiro, and Fortaleza, saw rapid construction of stadiums, airports, and transportation networks. Real estate prices in host cities began to rise:

• São Paulo: Residential property prices increased by 25% from 2010 to 2013 (Global Property Guide, 2014)
• Rio de Janeiro: Property values surged by 28% over the same period, particularly in areas near Maracanã Stadium

During the Event

The World Cup drew approximately 3.5 million tourists, generating an estimated $3 billion in economic activity (BBC, 2014). Short-term rental markets boomed as landlords capitalized on the influx of visitors:

• Rental prices in Rio de Janeiro spiked by 35% during the event compared to pre-World Cup levels (Knight Frank, 2015)

Case Study: Qatar 2022

Before the World Cup

Qatar’s preparation for the 2022 FIFA World Cup included over $220 billion in infrastructure projects, including Lusail City, stadiums, and new transportation networks (Knight Frank, 2023). Real estate prices saw notable increases in anticipation:

• Lusail City: Residential property prices rose from 2017 to 2021
• West Bay, Doha: Commercial rents increased by 25% during the same period

During the Event

The 2022 World Cup attracted over 1.4 million visitors, significantly boosting demand for short-term rentals and hospitality:

• Hotel occupancy in Doha peaked at 90% during the event, with daily rates increasing by 45% compared to pre-event levels (Qatar Tourism, 2023)
• Residential rents in Lusail’s waterfront districts rose by 20% during the tournament

Saudi Arabia 2034: A Unique Opportunity

Saudi Arabia’s 2034 FIFA World Cup is a natural progression of its long-term vision, Vision 2030. Unlike previous hosts like Qatar and Brazil, whose infrastructure investments were largely tied to the event, Saudi Arabia’s initiatives are driven by a larger objective. 

The World Cup will leverage pre-existing investments and solidify Saudi Arabia’s position as a leader in tourism, real estate, and innovation.

Pre-Event Investments: Built for the Long Term

Since 2016, Saudi Arabia has invested over $1.3 trillion in real estate and infrastructure projects, all aligned with Vision 2030.

Interested in tracking Saudi Arabia’s Vision 2030 progress, click here to read more!

These initiatives are designed to ensure continued demand and relevance well beyond 2034:

• Enhanced Connectivity: Significant investments are being made to modernize transportation networks, including expansions in metro systems, high-speed rail, and modernized airports, to facilitate seamless travel for millions of visitors
  Knight Frank
• King Khalid International Airport Expansion: The airport in Riyadh is undergoing a major transformation, with plans to become the world’s largest airport by 2030, capable of handling 120 million passengers annually, and increasing to 185 million by 2050
  The Sun
• Jeddah Central Development: This $20 billion project aims to develop central Jeddah, including the construction of the Jeddah Central Stadium, which will host international events and serve as a key venue during the World Cup

Expo 2030: Catalyzing Economic Growth

Hosting Expo 2030 in Riyadh is projected to have a profound economic impact, with an estimated contribution of SAR 355 billion ($94.5 billion) to Saudi Arabia’s GDP Al Taasis

The event is expected to attract 30 million visitors in person and an additional 100 million through virtual platforms, showcasing Riyadh as a city of the future Saudi Projects

These developments will not only support Expo 2030 but also provide essential infrastructure for the 2034 FIFA World Cup, ensuring that investments made are utilized for multiple major events. Ultimately, maximizing their value and contributing to the Kingdom’s long-term economic diversification goals.

During the Event: A Global Platform

The 2034 World Cup is projected to attract over 5 million visitors, boosting demand for hospitality and short-term rentals

Inspired by Qatar’s 58% post-World Cup tourism boost, Saudi Arabia anticipates a 70% surge,¹ driving demand for properties and rental yields 

The event will attract billions in foreign investments and create thousands of new jobs.

Did You Know?

• NEOM: Among the five host cities, NEOM promises to deliver an unparalleled experience with a futuristic stadium that blends cutting-edge technology with cultural heritage
• King Salman International Stadium: The architectural marvel in Riyadh, with a 92,000-seat capacity, will host the opening match and the final, setting new global standards for stadium design

Post-Event Effect: A Legacy That Lasts

Post-event, the infrastructure, housing, and commercial developments tied to Vision 2030 and the World Cup will continue serving a growing population and tourist influx. 

Nonetheless, Saudi Arabia’s robust economic diversification ensures a sustainable real estate market, supported by the following:

• A growing non-oil economy contributes to steady GDP growth
• Long-term infrastructure aligned with diversified urban needs, rather than short-term event demands
• Saudi Arabia’s mandate requiring global companies to establish their regional headquarters within the Kingdom by 2024 is attracting multinational corporations, ensuring a consistent influx of business activities, job creation, and demand for commercial and residential real estate (arabnews.com)

Ending note:

The 2034 FIFA World Cup is not the culmination of Saudi Arabia’s efforts but an amplifier of its long-term vision. 

By integrating the event into its broader strategy, Saudi Arabia ensures a sustainable legacy, proving that hosting a mega-event can be a stepping stone rather than a singular achievement.

Sources: 

https://www.cnbc.com/2014/05/29/heres-how-the-world-cup-will-boost-brazils-economy.html

https://www.academia.edu/99594253/The_Effects_of_the_2014_World_Cup_in_Real_Estate_Market_in_Rio_de_Janeiro_and_S%C3%A3o_Paulo

https://csmltd.com/articles/the-world-cup-effect-on-investing

https://www.travelandtourworld.com/news/article/qatar-tourism-soar-drawing-over-4-million-visitors-in-2023-a-surge-of-58-4

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If a specific projection of a 70% increase in tourism has been made by an expert or official, it may not be widely reported or documented in publicly accessible sources at this time.