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.
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:
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:
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:
The 2022 World Cup attracted over 1.4 million visitors, significantly boosting demand for short-term rentals and hospitality:
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.
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:
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.
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.
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:
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://csmltd.com/articles/the-world-cup-effect-on-investing
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.