Industry dreams of the spoils if city wins its Olympic bid.

The real estate industry awaits and readies itself for the decision--will New York City host the 2012 Olympic Games?

Last week, New York made the International Olympic Committee's list of the five finalist cities that are competing to host the games. Paris, Madrid, London and Moscow also made the list.

"It reassures what everybody expected. We are going to be in the running for the Olympics through 2005," said Steve Spinola, president of the Real Estate Board of New York, the day of the announcement. "Our chances are better now than they were last night."

The host city will be selected on July 6, 2005. New York is now in the process of preparing a draft and environmental review for submission to the I.O.C.

No one doubts the Olympic Games will be financially beneficial for the real estate, construction and design industries, as well as for the hospitality and tourism industries.

"A New York Olympic Games would have a profound impact on our city's future," said a press statement from the New York Building Congress. "With new and vibrant neighborhoods in midtown Manhattan and Queens, new recreational and sports facilities, and a great environmental legacy, as well as tens of thousands of new jobs and a regional economic impact exceeding $11 billion, the Games will have a transforming impact across New York City."

The areas surrounding the Olympic Village in Queens and the Olympic stadium on the far West Side will be considered more closely by investors, said Spinola.

"The real estate industry is going to look at those neighborhoods that the Olympics will affect," he said. "The industry will take those neighborhoods more seriously in terms of investment."

Barry M. Gosin, vice chairman and CEO of Newmark & Company Real Estate, Inc., agrees that further growth in those areas can be expected.

"Obviously adding infrastructure will be great legacy for New York," Gosin said. "Of course, properties will appreciate. Anytime you change an area dramatically, it will have a positive effect. I think you will see more development as a result."

Although New York made the Olympics list, it was ranked fourth by the I.O.C. behind Paris, Madrid and London.

Moscow was ranked last, with the committee concluding that "the working group is less than certain as to whether Moscow has the capability to host the 2012 Olympic Games."

The committee cut the cities of Leipzig, Istanbul, Havana and Rio de Janeiro, deeming them not capable of hosting the games.

The cities were evaluated based on 11 factors, including government support, legal issues and public opinion; general infrastructure; sports venues; Olympic Village; environmental conditions and impact; accommodations; transport concept; safety and security; experience from past sporting events; finance; and overall project and legacy.

New York, along with the four other cities, will have to prove that its Olympic bid proposal is feasible and show signs that steps are being taken to complete it.

The day of the announcement, Gov. George E. Pataki vowed to make it happen.

"Over this next year we will show the world that we have what it takes to host the 2012 Olympic Games," said Pataki. "New York City has unrivaled spirit and determination, and we also have a plan in place that will make oar city an ideal Olympic host."

Funding seems to be the largest hurdle--New York's bid is worth $3.7 billion, excluding funding for the New York Sports and Convention Center and the Olympic Village in Queens.

In its report on sports venues, the I.O.C. said New York City "Venue upgrading and new venue projects, budgeted at a cost of $2.765 billion through a combination of public and private spending over the 2005-2011 period, may present a challenge."

The Olympic Village, to be built on a portion of the Queens waterfront known as Queens West, is to be privately funded.

Some say financing isn't the problem, but international politics may play a role, as well as the city being perceived as a target for future terrorism attempts.

"If financing was the sole criteria New York would ultimately overcome that obstacle," said Barry LePatner, an attorney with expertise in real estate and development issues.

NYC2012 issued a press release, stating that "With support from every major elected official regardless of political affiliation, the City and State of New York have already provided a $250 million guarantee for the Games. This is a privately financed bid with $35 million in corporate contributions and enthusiastic labor union support through no-strike pledges for the Games."

LePatner agrees, saying "I don't believe they will fail in their mission, if there is a need to provide substantive proof of the funding to the committee."

The far West Side is being developed with both private and public funds.

Earlier this month, Jets Vice President of Development Thad Sheely said with or without the Olympics, the stadium will be built.

However, Sheely also said the city and state had not yet come up with the $350 million they had to kick in for the $1.4 billion sports and convention center. In addition, the Jets had not identified a funding source for its $800 million contribution to the project.

The day of the announcement, Sheely made this statement: "We are very proud to be apart of this nation's Olympic bid. I think it's a good indication of what the future holds."

In March, the city announced the financing package for phase one of the far West Side development in which the city's portion will come from reserve funds made available by Battery Park City Authority.

The state plans on restructuring existing Javits Center bonds and utilizing special federal advanced refunding legislation.