The Olympic committee’s London decision paves the way for a new planning body, the Olympic Delivery Authority, to drive the regeneration of former industrial sites in the Lower Lea Valley.

Tessa Jowell has been appointed minister for the Olympics.

Simon Davis, GVA Grimley's head of London regeneration, said: "This is the biggest, most ambitious regeneration scheme London has ever seen, and now we have the news we have all been waiting for, the hard work really begins.

"It is important for the ODA to be deployed immediately, and for the team to be given all the assistance and backing it requires to enable us to put the strategy into action."

RICS planning spokesman, Jeremy Edge, said: "The win represents an enormous triumph for the UK and London in particular. In relation to property investment and development it will transform East London and act as a significant catalyst for regeneration in the Thames Gateway. In addition to facilitating redevelopment in the Lower Lea Valley, the relocation of businesses is likely to cause a domino effect in securing the regeneration of areas further to the east, including Creekmouth to Castle Green and London Riverside."

"There will be a need for the skills of Chartered Surveyors to assist in land assembly, planning and development to realise this vision to allow the UK to capitalise on today's success. The immediate need will be for Government to press ahead with the infrastructure investment required to create the accessibility that the Olympic Games will demand and which will be an enduring legacy for London beyond 2012"

John Wriglesworth, chief housing economist at Hometrack said: "East London has received an enormous boost following the IOC’s decision for London to host the 2012 Olympics. It will see huge economic benefits, including regeneration projects, new developments and the creation of an Olympic Village, all of which will impact positively on house prices in the surrounding area."

"Hosting the games is an incredibly prestigious event for any city, and there is no reason to suggest that London won’t see the same benefits as previous host cities. Massive investment in infrastructure, world class sport facilities, thousands of new jobs, new homes and vastly improved transport links will consolidate London as one of the leading cities in the world, fuelling further investment in the housing market."

And it is not only London that will see a property surge

Millions of pounds will be invested in vital roads, property prices locally are set to rise and vital investment will pour into the county of Dorset, where the Olympic sailing events are to be held.

Fear that Weymouth and Portland’s infamous reputation for road congestion would kill the Olympic bid has turned into jubilation at the prospect of what the transport infrastructure improvements will do for the tourist seasons afterward.

Olympics lunch diners on Bournemouth seafront erupted in cheers at an event organised by the Dorset Business chamber. Media agency, Aylesworth Fleming’s chairman Matt Fleming said of Britain's successful bid: "This is amazing - nobody should underestimate what has been achieved here."

"This is phenomenal, what it's going to mean for the UK and for Dorset is going to be beyond belief."