Super Prime Property: How Prestigious Music Venues Influence Prices

Thirty-four-year-old billionaire Taylor Swift has created an economic wave across US states and some other international destinations where she has performed legs of her Eras Tour, to the extent that the phenomenon has been dubbed “Swiftonomics”. By the eighth month, following its inception, the tour had grossed over $1 billion, according to one study, making it the first-ever tour to pass this threshold – and the tour is still running its course, set to conclude in December 2024.

This “Taylor effect” has not only impacted local economies in terms of accommodation, tourism and food spend, but has even had a domino effect on home prices, according to an Architectural Digest study, boosting them by an average of 2.1% (and as high as 8.8%) after a concert was hosted in a particular city.  

In addition to this, Taylor Swift is reported to make major donations to food banks in every single city she tours in. Swift has allegedly ‘donated enough money to cover the food bills for 11 food banks and 8 community kitchens in Liverpool for a year’. 

But Swift is not the only musician to cause an economic ripple. Coldplay offers yet another example, with its Music of the Spheres World Tour breaking records and propelling spending across various American cities. 

Looking more broadly, a recent report showed that in 2022 – being the first full year of post-pandemic events in the UK – drew more than 14 million tourists into local areas across the country and injected £6.7 billion into the British economy, plus it’s projected that this could increase significantly by 2030.

It’s understandable then, among other factors, that the value of homes may escalate with proximity to event stadiums in some cases. And this is not a new trend sparked by Swifties. Looking back to a 2016 study – although it provides a somewhat isolated view – it was revealed that homes within a mile (just over 1.6 kilometres) of 20 US-based outdoor concert venues were valued at a nine-percent premium, on average, compared with homes in surrounding neighbourhoods.

Knowing these considerations may be “music” to some high-net-worth property investors’ ears. We’ve compiled a selection of 7 iconic stadiums around the world, which we believe offer the best opportunity to capture premium price increase. We share these below and take a look at the prime property locations where these event stadiums are set.

Dalhalla, Rättvik, Sweden

 

Undoubtedly one of the world’s most unique concert venues, Dalhalla is located in the picturesque town of Rättvik which is characterised by lake views and lush forests. Surrounded by one such forest, Dalhalla is set in what was once a limestone quarry and is now recognised as “one of the most powerful and beautiful outdoor arenas in Europe”. With a spectator capacity of approximately 6,000, the venue has hosted well-known Swedish and international artists, including the Hives and Kiss, who typically describe the arena as “truly unique”.

Looking at Sweden on the whole, there has been an increase in the number of billionaires that reside in the country in the last three decades, increasing from 28 "kronor billionaires" in 1996 to 542 in 2021, according to two local publications. One notable hub, just a few hours from Dalhalla, is Lidingö island, which appears to be favoured by the super-rich as one of Sweden's wealthiest neighbourhoods.

DHL Stadium, Cape Town, South Africa

 

Set in Green Point, the DHL Stadium was one of the venues that played host to the 2010 Soccer World Cup and has become an iconic landmark in the beautiful city of Cape Town. With capacity for 55,000 spectators, the stadium caters for sports, arts and, of course, music events. A range of artists like Bon Jovi, Justin Bieber, Rihanna, Michale Bublé, Lionel Richie, Mariah Carey, Ed Sheeran, and many others, have performed at the DHL Stadium.

Green Point, along with other Atlantic Seaboard suburbs, is an affluent area set near to the ocean, the famous Table Mountain and Signal Hill, as well as popular city amenities and tourism hotspots, such as the Victoria & Alfred Waterfront. Luxury homes in the Atlantic Seaboard attract many affluent foreign investors, especially given the country’s favourable exchange rate, compared with the US dollar, pound and euro.

Hollywood Bowl, Hollywood Hills, USA

 

Having opened in 1922, the Hollywood Bowl earned recognition as Southern California's premier venue for live music and in 2018, secured the title as one of the United States’ top 10 live music venues, given by Rolling Stone magazine. The venue is a well-known cultural landmark, having hosted some of music’s strongest names and representatives from numerous genres, such as Billie Holiday, The Beatles and Yo-Yo Ma. 

Although Hollywood Hills may be best known for the iconic “Hollywood” sign, it is also famed for its panoramic views, celebrity residents and luxurious homes, which underpin its status as one of the most affluent neighbourhoods in Los Angeles. The area has been cited by an estate agency as “ideal location for those who enjoy prestige in a community with a vibrant Hollywood pulse”.

Nippon Budokan, Chiyoda, Japan

 

Also known simply as Budokan, this arena was originally built for the judo competition in the 1964 Summer Olympics. Its roof has been beautifully designed to resemble the foothills of Mount Fuji. With capacity for 14,500 spectators, the venue has since become well known as a music arena and has played host to a number of A-list artists including Frank Sinatra, Diana Ross and Eric Clapton.

Chiyoda – the ward in which Budokan is set – is known as a political and corporate epicentre and is home to a number of international embassies and esteemed universities. This region is ranked by Housing Japan as the second wealthiest ward in Tokyo and is home to Bancho – an affluent area, known for the most expensive residential land in Japan.

 

Radio City Hall, New York City, USA

 

Set within Rockefeller Center, in Midtown Manhattan, Radio City Hall is a world-famous event space that has gained renown as a premier entertainment venue since its opening by John D. Rockefeller Jr. and the Radio Corporation of America in 1932. Known for its Art Deco Style, the venue was designed as “a place of beauty offering high-quality entertainment at prices ordinary people could afford”. With capacity for approximately 6,000, it is the largest indoor theatre in the world. Radio City Hall has had, and continues to have, a string of some of history's most famous artists perform on its stage.

According to a recent Forbes article, Midtown – from 57^th Street to Bryant Park – is home to some of the most valuable real estate in New York City, with signs of continued growth and interest as its trendy aesthetic and luxury atmosphere strike an appealing balance. On the whole, New York City is home to more HNWIs than any other city, with 349,500 who call the Big Apple “home”.

Royal Albert Hall, London, UK

 

Named after Prince Albert, the Royal Albert Hall was opened by HRH The Prince of Wales, on behalf of his mother, HM Queen Victoria in 1871. The hall was used soon after to house various national and international Arts and Sciences exhibitions, with the first being the London International Exhibition of Fine Arts. With over 150 years of history on its side, the hall has seen a wealth of famous faces perform on its stage and remains a famous British landmark that hosts the well-known BBC Proms, as well as ballets, blockbusters and a variety of musical performances.

Kensington, where the hall is located, is one of Prime Central London’s most prestigious boroughs, known for its luxury homes, historic architecture, central location and plethora of activities. According to an international estate agency, Phillimore Gardens became London’s most expensive residential street, with properties valued at an average of £23.8 million.

 

Sydney Opera House, Sydney, Australia

 

One of the busiest performing arts centres in the world – with 40 shows a week, offering something for everyone – the Sydney Opera House is a spectacular architectural masterpiece and UNESCO World Heritage Site set on Bennelong Point, known historically to the Gadigal people as Tubowgule. Having become a landmark tourist attraction, the opera house attracts over 10.9 million visitors to its doorstep every year.

Sydney, home to 147,000 HNWIs, typically attracts 1,500 millionaires per year via migration, and is known to demand higher asking prices for properties with water views and city landmarks, like the Sydney Opera House. In fact, pricing could be 50% to 60% higher for a property that boasts a prime view, compared with a similar property in the same area without a vista, as reported by Mansion Global.

 

 

What should HNWIs consider before investing in a super prime property, especially near to a music venue?

 

Investing in any prime property requires thorough due diligence. We advise that you work closely with local real estate professionals to scrutinise the potential for the property’s long-term growth and to gain comprehensive insights into the benefits and risks associated with a particular real estate purchase. 

When it comes to considering prime property that is set in close proximity to a music arena or hall, there are a number of additional factors to include in the decision-making process, such as the anticipated long-term viability of the venue, potential noise disturbances, and increased vehicle and traffic, to name a few. It would also be important to understand how the venue has affected property prices in the region, historically.

 

How can high-value properties be financed?

 

While there is more than one option for HNWIs to finance their prime property purchase, the decision will ultimately depend on the context and the client’s financial requirements. Mortgaging is the traditional way to gain access to funds required for a high-value property investment, however, uncovering the best options can be hard on your own especially if seeking a bespoke arrangement.

An alternative financing solution that works well for many HNWIs who require rapid access to a loan in order to move a property transaction along at pace is bridging finance. A bridging loan provides the means for individuals or corporate entities to access cash flow speedily via a short-term loan, which is often secured against prime real estate. Moreover, bridging finance is not typically restricted to a particular geographical location, which allows for greater flexibility.

 

Enness Global – UK and international mortgage specialists

 

Either way it’s best to talk to an independent broker with deep experience overcoming complexity who is dedicated to helping high-net-worth individuals unlock borrowing both within the UK and Internationally. So, whether you are seeking a super prime property in the wilderness away from the crowds or next to one of the world’s leading music venues, please get in touch to find out more.