Industry celebrates London Olympics

The UK construction industry is celebrating the news that London is to host the 2012 Olympics.

The Construction Products Association said that winning the games was a "tremendous boost" to London's economy, while the CIC called the successful bid the "First Gold Medal for the 2012 Olympics".

CIC chairman Stuart Henderson said: "It will raise a challenge for the UK construction industry to deliver the infrastructure and buildings required for the Olympics, but the industry will rise to the challenge to win the second Gold Medal before the Games begin."

Shareholders were also celebrating as the value of construction stocks soared. And estate agents are already experiencing the Olympic affect. In a poll of East End estate agents propertyfinder.com found that 40% of agents had already experienced higher call volumes today from both prospective buyers and sellers.

Savills said the Olympics would be an enormous boost to the regeneration of East London. Julian Clark, Savill's head of regeneration and development said: "The Oympic games will not only push forward the immediate Lower Lea Valley area but also encourage awareness of other major regeneration schemes across London."

Those already involved in delivering the Olympics were understandably overjoyed. Senior principal John Barrow at HOK Sport Architecture said: "We are proud and delighted to have played our part in bringing the Olympic Games to London." HOK is part of the masterplanning team.

Speaking from Singapore fellow HOK senior principle Ron Sheard said: "By 2012 London will have the best facilities in the world at Wembley, Wimbledon, the O² Dome and the new Olympics Stadium. The world expects - and London will deliver."

Tube Lines welcomed the news and said that it was ready to upgrade the Jubilee line in time for 2012. Chief executive Terry Morgan said: "London will show the world what it's made of in 2012 - on the athletics field, in sports arenas and in terms of tranpsort." Morgan said that the Jubilee line would be able to carry 40% more passengers to Stratford by 2012.

There will be £8.3bn of capital works, which will include £1.7bn for the Olympic Park and village.

Cost consultant Davis Langdon has estimated that the awarding of the Olympics could lead to an increase in construction inflation of 1 to 2%.

Permanent venues include Zaha Hadid's £66m aquatics centre; £26m velodrome; £590m Olympic village; £254m Olympic stadium.

An Olympic Development Authority will be set up to act as client and deliver the games. It will take six to eight months to set up, as it requires an act of parliament to establish.

The news that London had beaten Paris in the race to host the Olympic games came at 12.49pm. London won by 54 votes to 50. Madrid, New York and Moscow were eliminated from the race to host the 2012 Olympics earlier this morning.