This run-down portion of east London is changing profoundly – and rapidly. And its property scene is too. But it's not just the Zaha Hadid Aquatics Centre and all the other sports stadiums that are transforming the area. It's the Docklands Light Railway extension, the parks, the new flats and the giant Westfield Stratford City shopping centre.
The mall – the largest urban example in Europe, which came it at just a shade under a cool £1.5bn – opens next Tuesday. Between then and next August, the site will slowly be unwrapped, like a present in a game of pass the parcel.
But what effect will all this change have on the local property market? And is there perhaps somewhat less Olympic lustre than some people would like us to believe?
Renting
"Tenants will be attracted by jobs, rail connections, local shops and quality of life," says lettings expert David Lawrenson of www.lettingfocus.com. But Lawrenson is not entirely convinced by everything that's going in Stratford right now.
"New rail lines and regeneration are good, but big shopping centres just seem to bring traffic, kill off local shops and hence communities," he says. Perhaps the Games don't have quite the ability to push Stratford as far forward as has been suggested? Lawrenson thinks not: "I'd expect a price drop-off. I'm a big sceptic. In previous Olympics most of the stadiums seemed half empty.It's not real sport – not like football and rugby."
Some have suggested that the Olympics could bring in a surge of people wanting short-term lets during the Games. But those people might not come. And even if they do, will landlords be bothered by the hassle of organising short-term lets? "Our landlords do not want to risk void periods and incur the cost of purchasing all the furnishings for short-term lets," says Daniel Schulz at David Daniels & Co in Stratford.
Schulz has noticed a change in rental values. "Rents have risen drastically for the past couple of years due to a lack of landlords buying properties to rent out," he says.
Would Lawrenson advise people to take a punt on purchasing buy-to-let property in Stratford? "Not at the moment, as I'd imagine there is lots of hype in the pricing of everything there," he says.
But Keatons' Nick Verdi would encourage buy-to-let investors: "There are very few areas that are going to change as dramatically and as rapidly as the immediate area around the Olympic Park. Once completed, I'm confident that we will see a huge demand for this location. However, I would also add that the gains will be seen much longer term, over say a five to 10-year period."
Another unique factor in the so-called Olympic legacy is the massive complex of flats that will house the athletes next August, before being released as – mostly – rentals after the Games.
Triathlon Homes bought 1,379 properties in 2009 for £268m and some will be made available as social housing or for key workers.
"The homes in the village will be of the highest quality. A mix of tenures and home types will help to ensure that a broad range of residents on a variety of incomes are catered for," says Triathlon's executive director Geoff Pearce.
Last month Delancey and Qatari Diar snapped up 2,818 flats in the Athletes' Village for £557m. Again, many will be rented out. That joint deal also allows for the building of 2,000 further homes in the Olympic Park. Isn't this all a bit too much?
"The Athletes' Village is a unique proposition for London. It will, I believe, take a number of years for all these units to be absorbed into the market," says Marcus Dixon, associate director of residential research at Savills.
Buying
If you're hoping to make a quick buck out of the Olympics, it's very much a case of look before you leap. Verdi explains: "We saw a huge increase the moment the announcement was made that Stratford would hold the Games. During the credit crunch, prices fell as they did everywhere. Since then the market has recovered and has remained stable over the past 18 months."
Dixon adds: "The Olympics will undoubtedly bring people and money into areas where events are taking place. However, this does not necessarily translate into higher prices. In the area close to the Olympic Park, the biggest price rises were seen when speculative investors bought into the area before the bid was officially announced. Since the announcement price performance has been similar to that across Greater London."
So should you take a punt on a property in Stratford? "The Olympics and its legacy will undoubtedly raise awareness of venue locations and bring it to the attention of the UK and international public," says Dixon. "However, investors should remember the fundamentals. After the Olympics, investors should look at the potential for the area to compete with other neighbouring locations."
Perhaps it is the regeneration – the new fast rail services to Stratford International, Westfield and the upgraded environment, which will affect the market more than the Games themselves. Verdi makes a valid point: "It's hard really to distinguish between the two. Much of the private investment is only as a direct result of the Games, so ultimately we owe it all to the Games."
It's not just London that has seen an Olympic effect on prices. Weymouth could be an unlikely winner in the Olympic price-rise race. The venue for the sailing events saw average prices in August up 10.5 per cent on the same month last year.
But it seems hard to believe that other venues around the country will experience the same effect. Cities such as Manchester, Coventry, Cardiff and Newcastle – all of which will host football matches – will get little in the way of new infrastructure or regeneration.
"Once the Olympics have finished, it won't matter much that a stadium and some more houses are there," cautions Lawrenson. "The only thing that will put up values of rents and houses is regeneration in the form of jobs, better transport and a pleasant environment in which to live."
So, while the Olympics may bring a slew of gold medals to Britain next summer, will it spark the gold rush in property that some are hoping for? Only time will tell.
Play the games
To Let:
Stratford Eye, Stratford
Victoria Knight in Stratford have a two-bed flat in this new high-rise building, which overlooks the Olympics site, for £318 per week. You can watch the construction of the village and its bonkers buildings from your sofa. www.victoriaknight.co.uk
Shared Ownership:
Vantage Point, Homerton
Stagnel Fox are offering a 35 per cent share in a one-bedroom flat at the new Vantage Point development in Homerton for £87,400. One- and three-bed flats are also available here. Usain Bolt could make it to the northern part of the Olympic Park from here in about 60 seconds. www.stagnellfox.co.uk
For Sale:
Omega Works, Bow/Hackney Wick
On the borders between Hackney and Bow, just west of the Olympic Park and near two canals, Omega Works is a new-build block in an area no one wanted to live in just a few years ago. Regent Property in Mile End have a two-bed flat in this building on the market for £300,000. www.regentps.com
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