Housing boom in Łódź

Adding date: 05.04.2018 | Poland

A well-connected city with a qualified workforce and with renowned universities is a guarantee of development, providing that within its administrative borders there will be attractive investment areas on which office facilities, factories or housing estates can be built.

Does Łódź posses the features mentioned above? Well-qualified workforce, good cooperation of business and scientific environments and also competitive rental prices of office spaces are only some advantages of Łodź that attracts new investments to the city. The most important national and European transport routes cross near the agglomeration – intersection of the A-1 and A-2 motorways in Stryków provides fast connection with Warsaw, Poznań, Gdańsk and Toruń, and proximity of S8 and other express roads give the opportunity for fast connection among others with the Silesian agglomeration. Accessibility of two international airports including one located 15 minutes from the centre of Łódź is an additional advantage. However, the thing that has recently attracted new investors, mainly from real estate development industry to the city are attractive offers of investment areas. 

RECORD NUMBERS

Commercial real estate market in Łódź has recently been developing very dynamically. Currently, 60 cranes work on building sites in Łódź and in 2017 the record number of building permissions was issued – 3,751. – This has been a record for many years and a good prognosis for the future. In 2017, the city issued 3,751 building permissions which constitutes the greatest number in the history of Łódź. Near the EC1 a “Brama Miasta” building is being raised. “Nowa Fabryczna” and “Przystanek mBank” has already been opened in the New Centre of Łódź. Despite winter, the cranes work on the “Ogrodowa office” site and Puro hotel located vis a vis Poznański Palace. The year 2018 is marked by huge construction in our city – said Mayor of Łódź, Hanna Zdanowska.  

In Łódź, both office developers (for example Skanska, Ghelamco, Echo Investment and soon HB Reavis), logistics industry developers – such as Panattoni; hotel – among others Puro Hotels as well as residential developers (for example SGI, Atal or Murapol) are developing and further investments are at the preparation stage or will start soon. The area of so called the New Centre of Łódź attracts most the investors of real estate industry. This area involves 100 ha in the very centre of the city, limited by the streets Piotrkowska – Narutowicza – Kopcińskiego – Tuwima. Thanks to revitalization activities in the area of the modern Łódź Fabryczna railway station a district which will restore splendour to the city-centre of Łódź will be developed. The whole area is included in the spatial development plan that allows for construction among others new residential, office and service facilities in the area of the New Centre of Łódź. The widely understood revitalization process will have a great impact on the real estate market. 

For the investors the most important fact is that the New Centre of Łódź is not a virtual project but a bustling and dynamically developing process. The first spectacular investment is the revitalized former heat and power plant EC1 that was adopted for cultural, educational and entertainment needs – currently a cultural institution called “EC1 Łódź – Miasto Kultury” acts in the facility.

In the New Centre of Łódź new office investments are being created, including newly commissioned “Nowa Fabryczna” built by the Skanska company, which substantially all was rent before commissioning, the second investment of this company, currently at the development stage – “Brama Miasta” or “Przystanek mBank” by Ghelamco and next buildings will be developed on sites bought by Ghelamco and HB Reavis.

Other places in Łódź where investments are also eagerly undertaken are also worth mentioning. In the close vicinity of Manufaktura and Poznański Palace the “Ogrodowa Office” building (Warimpex) is being build, works on the intersection of Piłsudskiego and Śmigłego-Rydza streets in connection with the construction of the "Imagine" office building (Avestus) will start soon, Orange Property Group implements the "Teal Office" and "Sepia Office" investments at Piotrkowska street. 

PLENTY OF CHOICES...

A lot of investors, both developers and final investors from the office, residential, hotel, warehouse and service sectors, are attracted by the areas in Łódź, that will be sold in the near future through a tender. This can be proved by the number of conversations that city representatives held at the MIPIM real estate fair in Cannes or EXPO Real in Munich, as well as more frequent visits of companies’ representatives in Łódź. The offer of investment areas is presented during direct meetings and is also regularly updated and posted on the city’s website by the Department of acquisition and sale of Real Estate. 

Investment areas in Łódź are sought not only by office or residential but also by production and warehouse developers. Free plots for such activity are sold extremely quickly and tenants find the newly-built spaces even prior to construction commencement. The most popular are the areas located in Widzew district in South East part of Łódź.

Significant movement on the real estate market in Łódź has contributed to founding in Łódź new branches of consultant company from the real estate sector and developers who have formerly invested in the city more and more often report to Investor Service and International Cooperation Bureau of the City of Łódź Office in order to find an interesting property for future office, warehouse or residential development. Support of the Investor Service and International Cooperation Bureau includes widely understood help in an investment project, including the most efficient way of dealing with the required administrative procedures.

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