Bringing more capital to the capital
Warsaw Mayor Hanna Gronkiewicz-Waltz opened last week's Central Europe Property and Investment Fair (CEPIF) press tour in Warsaw with a speech to an audience of journalists from international publications across Europe. She focused on the city's determination to facilitate foreign investment in Poland, particularly in the capital. She also spoke of the importance of retaining an awareness of the city's turbulent past while moving forward with social and economic develoment in this area of "unlimited opportunity." The Mayor went on to state that "the area of property open to investors is considerably greater than in any other European capital, which has the potential to benefit city authorities, potential investors and - above all - the city's inhabitants."
The Mayor declared the city's dedication to equipping the city with all the necesary features to attract investors and inhabitants alike. This involves a series of key factors, mainly infrastructure, such as the expansion of the metropolitan transit network along the fast suburban railway and underground subway systems, a larger bus fleet, upgraded construction of major highways, bridges and tunnels, expedited renovation of central streets like Krakowskie Przedmieście and implementation of utilities networks in areas targeted for development.
The city is putting an emphasis on residential development to address the housing deficit and attract inhabitants from smaller cities with higher rates of unemplyment. The Mayor hopes that prices for residential property will level out in the near future and that construction of homes for individuals and family units with moderate incomes will rise to a more reasonable level as increased development in areas further from the center (Tarchomin, Siekierki, Ursynów) supplies a more affordable housing standard.
The city recognizes that the low proportion of its area covered by zoning plans, currently at 16 percent of its total area of roughly 570 ha, can be a deterrent to many investors. It will address this issue by increasing this level to 20 percent this year and an ambitious 30 percent in 2008, which will be roughly equivalent to the proportion of Gdańsk and Wrocław that is covered by zoning plans.
The Mayor also discussed the enrichment of cultural institutions with regard to plans for the construction of the Jewish Museum, the Contemporary Art Musuem, the Copernicus Science Insitute and an advanced sports center on the site of the Tenth Anniversary Stadium. The eastern bank of the river will see considerable investment activity in housing as well, as the Praga Port area opens up for development. The city is also looking to develop certain areas along the river, including the Wybrzeże Gdańskie, for a variety of projects, such as an industrial park for global IT and outsourcing firms.
The Mayor concluded her speech with a vision of Warsaw's future skyline where the density of glass towers will crowd the Palace of Culture, making that bone of contention less conspicious.
Rednet's Michał Kosyrz and Orco's Douglas Noble joined CEPIF and city authorities at the conference. Rednet is a leader in property consulting, procurement and management. Orco, a development firm with EUR 8.7 (zł.34) million in global annual turnover, has been building a significant presence in Warsaw's real estate market since 1991, striking particular interest on the international scene with Daniel Libeskind's much-anticipated Złota 44 project. Both firms will be part of the CEPIF event in Warsaw running from June 2-5 at the city's XXI Expo Center.
