The Spanish Real Estate Market in the Game

Overview

Spain will host more than 60 games in 11 stadiums at the 2030 World Cup. In addition to the main official stadiums included in the “Bid Book,” there will be 45 “Team Base Camps,” additional stadiums and sports centers where national teams will be able to train and prepare for their matches. The bases will include training areas, gyms, and ancillary areas. They'll be distributed throughout Spain in 16 out of the 17 autonomic regions (Comunidades Autónomas) of Spain.

 

Background

Exactly what infrastructure work will be carried out in the coming years is yet to be defined in detail. But the Spanish nomination has benefited from other investment initiatives. CVC, an experienced partner in the sports industry, has invested around EUR2,000 million in the “LaLiga Impulso” strategic project. The aim is to promote growth and to consolidate projects from a sports and business perspective. The agreement with CVC is allowing several Spanish clubs to improve infrastructure affecting their stadiums and sports installations. It's also improving technical infrastructure, communications, international branding, marketing, technology and business infrastructure. Several stadiums have already been refurbished and sports centers expanded. The internationalization and progress in terms of digital infrastructure of the Spanish clubs and the investments on branding are good examples of significant progress as a result of the “LaLiga Impulso” project and the strategic agreement with CVC. Spanish clubs are implementing huge investment strategies to improve and expand their stadiums through collaboration and service agreements with consultancy and advisory agencies, such as Sixth Street, a US fund that owns a significant stake in the “Legends” company. Sixth Street is providing services to top Spanish clubs, including Real Madrid, Fútbol Club Barcelona, Sevilla Fútbol Club and Valencia Club de Fútbol.

 

New investments and infrastructures

The Spanish government has already announced investment of around EUR1,430 million for new infrastructure and organizational costs linked to the 2030 World Cup. The idea is to obtain profitable returns from the public investments. This investment will affect airports, train stations, road networks and other infrastructure, which will not only improve the transport during the World Cup event, but also improve long-term connectivity. These improvements will also make certain areas more attractive to real estate investors, increasing property and land values in those areas.

 

New project developments

The need to accommodate large numbers of visitors will also boost development of new real estate projects. The construction of new hotels and the renovation of existing ones is expected to increase accommodation opportunities. In addition, the creation of new sports and entertainment infrastructure may lead to the development of residential and commercial complexes in the vicinity of stadiums and other key facilities. The development of flexible residential concepts in Spain such as flex-living and co-living projects will also allow many residential areas to provide accommodation services to visitors and staff attending the 2030 World Cup. These new residential concepts are booming and their flexible nature makes them an interesting alternative to traditional accommodation.

 

New real estate transactions and planning approvals

The main sport refurbishments and extensions will be followed by the necessary real estate transactions. For instance, the improvement and extension of the La Rosaleda stadium in Málaga will require the acquisition of several adjoining plots. The land will be used for complementary purposes linked to sport and leisure activities and will be fully operational during the 2030 World Cup. Refurbishing the sport stadiums will also have to be processed and approved according to several planning instruments such as amendments of the existing general planning regulations contained under the respective Master Plans of each municipality. And the municipalities where the stadiums are located will have to approve special plans and infrastructure plans. These planning approvals are needed to adapt the infrastructure of the municipalities and the planning conditions of the plot to the new sport projects.

Processing these planning approvals may also require environmental reports and other sectorial requirements. The complexity will depend on the scale of the improvements and the works required for each case.

 

Long-term impact on the real estate sector

Beyond the event itself, the 2030 World Cup will have a lasting impact on the Spanish real estate sector. Infrastructure improvements and property upgrades will attract more investors and long-term citizens, contributing to economic growth and sustainable urban development.

The 2030 World Cup will not only be the sporting event of the time, but also a catalyst for the development and transformation of the real estate sector in Spain. Investments in infrastructure and increased demand for accommodation are just some of the positive effects that will have a lasting legacy for Spain and the other host countries.