Revival of the poorest
Despite a relatively low average monthly salary of zł.2,135 and an unemployment rate of almost 12 percent, Lublin has huge potential in its young population. With 40 percent of its citizens below 35, there is an eagerness in the city for new investment and development.
"There are great investment opportunities in Lublin. With 100,000 students the city has a very well-based labor market," said Przemysław Gruba from Lublin's city promotion office. Although there is also demand for retail and office space, purchase prices remain low.
The city's income is constantly rising, from zł.643 million in 2003 to zł.866 million this year. Investment is also on the up - in 2003 it constituted 10.7 percent of the budget and this year it will reach 20 percent. Average purchase prices per sqm are zł.1,600-4,000 for office space, zł.1,500-2,800 for commercial space, and zł.2,200-3,000 for housing. Building plots are available for zł.40-170 per sqm.
Land locked
"A lot of investment is taking place in Lublin," says Gruba. Representatives of Lublin's Promotional Office stressed that the problem of land ownership, which is so typical of other bigger cities, is effectively regulated in Lublin. "Forty-four percent of the city's area has updated spatial-development plans," says Małgorzata Potiopa from the office.
Among the most significant developments in Lublin in the last few years are the Zana Center, Hanesco, Dalimex, and the Corner House on the office market, and Olimp, Makro, E.Leclerc, Real, Obi and Media Markt in the retail sector. The retail market has been undergoing an investment boom recently, which will mean a serious increase in the supply of modern shopping-center space in the city. According to Jones Lang LaSalle, by the end of the year Lublin will have 90,000 sqm of modern retail space, 11,000 sqm of that being added by Galeria Orkana.
"Galeria Orkana anticipates great interest not only from tenants, but also from international investors," said Anna Wysocka, director of the retail department at CB Richard Ellis. By the end of 2007, when the 68,000-sqm Lublin Plaza scheme is completed, there will be about 130,000 sqm, according to Jones Lang LaSalle. Gray International is planning to open Centrum Felicity in 2007/2008, which will deliver a further 100,000 sqm onto the market.
Local know-how
Local players are also active in the town. City hall representatives say that Polish firms are investing in Lublin's Old Town, and are taking advantage of the area's restoration in 2005.
Among the land plots available to potential investors that were presented at EMPEX is a 1.2829-hectare plot at ul. Północna 37 designated for services and selling for zł.333 per sqm. There is also 0.9740 hectares at ul. Skowronkowa 2 for zł.216 per sqm designated for commercial services. On ul. Koncertowa the city offers three plots, one for perpetual usufruct at ul. Koncertowa 8, of 4.8748 hectares for zł.178.6 per sqm and designated for public and commercial services. A 1.6837-hectare plot on ul. Koncertowa 4 is designated for sport and recreation services and costs zł.202 per sqm, whereas 2.3904 hectares for zł.178 per sqm is for commercial services. At ul. Piłsudskiego 15 the city is offering the lease of a 40,000-sqm plot for the development of a cinema and entertainment center.
Gruba also highlights Lublin's main bus station and surrounding area, which is designated for significant redevelopment and is just waiting for the right investor.
