This paper investigates impacts of three multifunctional sports arenas situated in Berlin-Prenzlauer Berg, Germany, employing highly disaggregated data on land values. The three arenas, their architecture and location within the city were explicitly designed to contribute to revitalisation of their economically deprived neighbourhoods. A difference-in-differences approach is employed to check for structural breaks in development of land values within areas of potential impact. The results suggest that arenas emanate positive externalities that improve location desirability in their neighbourhoods. However, evidence also supports concerns that the negative external effects of arenas may adversely affect neighbourhoods, when not addressed appropriately during planning.
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