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Last Updated: Wednesday, 6 July, 2005, 16:02 GMT 17:02 UK
Building shares up on Olympic win
Computer generated image of London's proposed Olympic riverside park
The Olympic Games can be a powerful motor for economic growth
Construction shares have jumped in London after the UK capital won the race to host the 2012 Olympic Games.

The gainers included home-builder Persimmon, up 2.2%, Balfour Beatty, which added 5.2%, and Costain Group, which saw a 3.9% gain.

The stocks moved seconds after it was announced that London had defeated favourite Paris with its bid.

Billions of pounds will be spent preparing London for the Olympics, one of the world's biggest sporting events.

Winning line

Staging the Olympics is an expensive project, with cost estimates ranging from just over 1bn to more than 5bn.

London Olympic bid poster

A lot of that money will be spent on building new sporting arenas, housing and travel links.

An important part of London's bid was the impact the Olympics would have in regenerating the east of the capital.

The Olympic site is earmarked for the Thames Gateway, and there are plans to build 4,000 four-bedroom homes which will be used as an Olympic Village by competitors.

According to early estimates, some 728m will be spent on land purchases and construction.

There are also likely to be positive knock-on effects for job creation and tourism.

London defeated Paris at the International Olympic Committee vote in Singapore, after bids from Moscow, New York and Madrid had been eliminated.

Paris had been favourites throughout the campaign.


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