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uThe FIFA World Cup is more than just a global sporting event – it has the potential to transform host nations and cities and act as a catalyst for investment, urban development, and economic transformation. With 48 teams, 16 host cities, and an event footprint spanning three jurisdictions, the 2026 edition is ambitious in scale and complexity. For those operating in real estate, whether as investors, developers, lenders, landlords, or tenants, understanding the legal landscape that governs World Cup-driven development is key. If approached strategically and effectively, this presents an opportunity for governments to invigorate underdeveloped urban areas, driven by the influx of visitors and capital investment.
This article will consider the various opportunities that hosting a World Cup presents for the host nations in the real estate sector. We will highlight some of the complex legal and financial issues that can arise and ultimately determine whether tournament-period gains translate into long-term value.
Key investment opportunities leading up to World Cups
The lead-up to a World Cup generates a distinctive cycle of real estate activity across multiple asset classes. Each asset class presents its own commercial logic and legal pressure points and, if structured properly, can often deliver long-term financial value.
Hospitality
Hosting a World Cup is likely to lead to an increase in demand for hotels, restaurants and serviced accommodation. Local operators can use this opportunity to renovate or expand their establishments, allowing them to capitalise on the increased short-term demand, as well as modernising their establishments. Host nations may require innovative and logistically / legally challenging approaches to deal with the influx of tourists, such as the use of cruise ships as floating hotels during the Rio 2016 Olympics. This arrangement required simultaneously navigating local regulation, health and safety licensing, and commercial permit frameworks1. The 2026 World Cup, with its multi-city footprint, is also likely to generate demand for flexible accommodation solutions in host cities. Investors and operators should be mindful of properties renovated to tournament-period specification, and a post-tournament strategy should be considered in parallel with the event-period business plan from the outset.
Residential real estate
As cities develop their infrastructure for hosting World Cups, they become more attractive places to live, and the demand for residential accommodation can increase during and following a World Cup. This creates opportunities for both new construction and investment in existing properties. Investors may target short-term rental properties to capture high returns during the tournament, while also considering longer-term investments that will continue to serve local communities afterwards.. The legal architecture underpinning this strategy requires careful attention. Short-term rental regulations vary significantly between host cities, particularly in the 2026 context, where municipal rules will vary across cities and countries.
Commercial real estate
Commercial real estate around stadiums and fan zones offers high visibility for sponsors during the World Cup, making it a prime target for retail and entertainment ventures. As well as temporary ventures, larger-scale developments such as stadiums or retail centres may be developed in the lead-up to a World Cup. In Atlanta, which is hosting eight World Cup matches in 2026, 250,000 square feet of retail and entertainment space (Home Depot Backyard) is being developed in the downtown area2, as well as various mixed-use spaces. Beyond the tournament period, the strategic question for commercial landlords and investors is whether tournament-period infrastructure translates into durable revenue. The legal and structural choices made in development and leasing documentation, particularly around tenant obligations, exclusivity rights, and estate management frameworks, are a significant factor in determining which outcome is more likely.
Mixed use developments
Mixed-use developments combine residential, commercial, hospitality, and recreational spaces (including public realm) into a single, integrated environment. Such developments offer flexibility during the tournament, allowing various operators to allocate space toward commercial and hospitality uses during the World Cup, as well as offering long-term value, and flexibility afterward (e.g., by repurposing space for residential use). For the 2026 World Cup, there are various mixed-use developments underway, notably Project Related Santa Clara which is a public-private partnership consisting of 9.2 million square feet of hotel rooms, commercial offices, a park and retail space3. Clearly delineating public and private responsibilities over development obligations, cost sharing, risk allocation, and asset ownership at scheme completion, is essential to the legal documentation of any comparable project.
Legal considerations and challenges
Permits, approvals and regulatory compliance
Host countries will have distinct regulatory and compliance frameworks for investment in real estate, and it is important to seek advice from local counsel to navigate these. In Qatar (the hosts of the 2022 World Cup) for example, real estate ownership is generally restricted to Qatari nationals, although foreign citizens may be allowed to own property in designated investment zones under the Foreign Ownership of Real Estate Law4. Permits and approvals for developing real estate will also be subject to local regulations and should be considered during the initial stages of an investment. The 2026 World Cup, co-hosted by Canada, Mexico, and the USA, introduces additional layers of regulatory complexity, requiring investors to understand and comply with various distinct legal systems should they invest across all host nations, or even across different states.
Securing finance
Financing for World-Cup related real estate projects can come from traditional funding such as bank loans, syndicated or institutional lending, or government-backed initiatives. However, the tournament timeline introduces specific pressures that lenders will scrutinise carefully, and loan documentation should set clear delivery timetables as well as account for potential overruns. Public-private partnerships, with funding from both government and private sources, can be a strategy for projects with public utility. For example, in Saudi Arabia, we are seeing an increase in large real estate projects in the lead up to it hosting the World Cup in 2034 (e.g., Neom, which is largely but not entirely publicly funded5). Sustainable finance options and green loans can also be used and may even be incentivised by local governments as it can help them meet climate targets.
Commercial leases – Key clauses
Commercial leases are key during World Cup events and must be tailored to accommodate the specific characteristics of host nations. Where possible, the event itself in order to manage risk and optimise revenue. Some of the key clauses and considerations for these commercial leases are noted below.
Rent adjustment mechanisms can enable landlords to capitalise on the increased demand during a World Cup. Turnover rent provisions, allowing a landlord to benefit from increased sales volumes in retail and hospitality spaces, are commonly included in retail leases. Following confirmation that premises are located in a host city,.landlords may negotiate i fixed rent increases during the event period when negotiating leases
The temporary use and subletting of properties, as well as public realm areas, to third parties such as sponsors or pop-up vendors can provide landlords with an opportunity to capitalise on increased demand during the World Cup period. Any head lease and financing agreements should be reviewed for provisions that restrict temporary subleases and licences, so that any necessary approvals can be obtained ahead of the World Cup. When negotiating such agreements, care should be taken to ensure landlords retain sufficient flexibility to commercialise common areas in response to public demand.
Operating hours and access may need to increase or vary during the World Cup due to the timing of matches. They could also be simply extended to allow more people to flow through the property. Commercial leases should address these potential variations to accommodate visitor demand, and should also be checked for restrictions regarding noise, trading hours, and shared space usage.
Maintenance, upkeep, and branding standards may also be relevant considerations for landlords during a World Cup period due to their property's exposure to global media. Leases may require high presentation standards, including tenant obligations relating to cleaning and upkeep. The branding dimension requires particular attention: FIFA's commercial rights framework strictly regulates the use of official tournament marks and imagery and prohibits 'ambush marketing', defined as the unauthorised association of non-official sponsors with the tournament in and around host venues and designated areas. Landlords may need to flow down restrictive terms from contracts with FIFA to prevent unauthorised branding.
Force majeure clauses are crucial for risk management and are standard for any contract. In the context of a World Cup or similar global event, parties should consider including various event-related disruptions into these clauses, such as crowd surges or disruption, potential security lockdowns, and transport issues. Stakeholders should consider linking these to insurance covers (i.e. maintaining insurance for event-specific risks), and provisions for rent relief in case of major disruption.
Termination and suspension rights and flexibility around these clauses are crucial for risk management, particularly during a high-profile event like the World Cup. Rights to suspend operations due to public safety concerns or event cancellations should be negotiated into leases. Notice periods, penalties for early termination and conditions for termination should also be considered.
Key takeaways and looking ahead
The FIFA World Cup creates a time-bound, and legally complex real estate opportunity. The decisions made in the structuring, financing, and documentation of World Cup-related developments can determine not only whether participants capture tournament-period revenues, but whether those investments deliver durable long-term value.
For investors and practitioners active in this space, the following practical takeaways are worth emphasising:
- Consider regulatory approvals, financing structures, and lease negotiations early as they may have long lead times.
- Think rigorously across jurisdictions. The 2026 World Cup's three-nation footprint means that investors, developers, and occupiers operating across host cities must contend with materially different legal systems.
- Structure for legacy, not just the tournament. Lease structures, development schemes, and financing arrangements should be stress-tested against post-tournament demand scenarios.
- Account for FIFA's regulatory framework. Landlords and tenants operating in host cities must understand FIFA's commercial rights restrictions, particularly around branding and ambush marketing, and ensure that their lease documentation reflects and manages those obligations.
- Engage proactively with sustainable finance. Green loans and ESG-aligned financing structures are key for major real estate developments. Developers and investors who engage with these instruments early will access a broader range of financing options.
Looking ahead, attention is already turning to Morocco, Portugal, and Spain's joint hosting of the 2030 World Cup which will draw comparable cross-jurisdictional issues as the 2026 World Cup. Saudi Arabia's hosting of the 2034 World Cup also promises a huge scale of planned development, which will require early and detailed analysis.
Footnotes
1. https://www.usatoday.com/story/travel/cruises/2016/07/28/norwegian-getaway-rio-olympics/87653924/
2. https://worldcup.colliers.com/p/2
5. https://www.neom.com/en-us/about
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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