Lublin

Since the beginning of 2014 Lublin has grown in popularity among developers offering modern warehouse, office and hotel spaces. This trend results from a growing demand for this type of services in our city. Warehouse space increased from 25,000 sq m in 2014 to over 160,000 sq m in 2017, while over 53 thousand sq m are still in preparation. This space is mainly centred in the eastern part of the city, easily accessible from the ring road and the airport, where the special economic zone is located. Office space expanded from 130 thousand sq m in 2014 to almost 180 thousand sq m in 2017, while over 28 thousand is still in preparation. Moreover, currently Lublin hotel market is offering 1 230 rooms in 29 hotels. Room occupancy rate in Lublin in 2016 amounted to 36.8% and in the group of province capitals in Eastern Poland was higher than in Rzeszów and Kielce.
City Lublin
General information about the city in relation to the real estate market Since the beginning of 2014 Lublin has grown in popularity among developers offering modern warehouse, office and hotel spaces. This trend results from a growing demand for this type of services in our city. Warehouse space increased from 25,000 sq m in 2014 to over 160,000 sq m in 2017, while over 53 thousand sq m are still in preparation. This space is mainly centred in the eastern part of the city, easily accessible from the ring road and the airport, where the special economic zone is located. Office space expanded from 130 thousand sq m in 2014 to almost 180 thousand sq m in 2017, while over 28 thousand is still in preparation. Moreover, currently Lublin hotel market is offering 1 230 rooms in 29 hotels. Room occupancy rate in Lublin in 2016 amounted to 36.8% and in the group of province capitals in Eastern Poland was higher than in Rzeszów and Kielce.
Financial investment budgeted in public projects in 2017 in PLN In Lublin City budget for 2017 capital expenditure amounts to over PLN 424.7 million, including investment operations and capital purchases amounting to PLN 387.2 million. The most expensive task being implemented this year is extending Bohaterów Monte Cassino street. New 1.2 km dual carriageway will be put into operation in the summer of 2018. An estimated cost of this task is PLN 87.5 million.
The most important projects completed between October 2016 and September 2017 One of the priorities accomplished by Lublin during this period was putting into operation of Lublin western ring road and revitalisation of the Lithuanian Square. A section of Lublin western ring road complements already functioning northern and eastern section of the city's ring road. The ring road keeps transit traffic outside the city, thus reducing the congestion. The other investment operation - the Lithuanian Square is a central city meeting place with the approximate area of 35 thousand sq m. A basic assumption of revitalisation was eliminating motor vehicles traffic and building a multimedia fountain complex. As a part of this investment operation the interactive complex was created which enables organisation of fountain shows combining five functions: water, light, sound, image and lasers. It is worth mentioning that the revitalisation of the the Lithuanian Square had the highest number of votes and won in the competition Eastern Poland Top Investment Operations 2017!
Major projects planned for 2018 The preparations for the construction of a dual carriageway connecting Kunickiego and Wrotkowska Street have begun. New street will be the last element of so called inner Lublin ring road with two lanes of traffic in each direction. Scope of work will also include construction of a grade-separated crossing with an industrial spur. Tracks would run under the roadway and would be closed in a steal tube. Bike paths and pavements will be built on both sides of the street. The road will be approximately 1.5 km long. An estimated cost of the investment operation is PLN 58 million. It is also planned to reconstruct/develop the city's central street - Racławickie Avenue and Honorary Blood Donors Roundabout along with an indispensible infrastructure (e.g, bus passes, paths for pedestrians and cyclists, street lights, reconstruction of a trolleybus traction). An estimated cost of the investment operation is PLN 50 million.
Major current projects 1) Low carbon emission network of public transport for the northern part of Lublin Functional Area along with the preparation of an electronic ticket system for an agglomeration transport - PLN 174.8 million (including PLN 123.8 million from EU funds). 2) An Integrated Transport Centre for Lublin Functional Area - PLN 190.9 million (including PLN 136.7 million from EU funds). 3) Construction of a new alignment of DW 809 road in Lublin between an intersection of Bohaterów Monte Cassino and Wojciechowska street to Sławin transport node - PLN 191.5 million (including PLN 155 million from EU funds). 4) Reconstruction of a strategic public transport corridor including the purchase of a rolling stock for the central part of LOF - PLN 105 million (including PLN 68 million from EU funds). 5) Construction and reconstruction of the following sections of DW 835 in Lublin - PLN 165.2 million (including PLN 124 from EU funds).
Financial resources (in PLN) for investment in each of the last five years Capital expenditure incurred within last 5 years: - 2012 PLN 362.3 million, - 2013 – PLN 562.5 million, - 2014 – PLN 658.9 million, - 2015 – PLN 363.9 million, - 2016 – PLN 217.1 million.
The proportion of the city’s budget invested in projects for buildings in relation to other expenditure (in pct and PLN) - construction of a primary school, kindergarten and a cultural centre at Berylowa street (commencement of works) - PLN 3 mln,
- modernisation of a building of Primary School No. 32 - PLN 80 thous.,
- thermal efficiency improvement of Primary School No. 25 - PLN 1.2 mln, Primary School No. 7 - PLN 1.9 mln and of School Dormitory No. 1 building - PLN 1.0 mln,
- modernisation of School Complex No. 4 facilities - PLN 2.5 mln,
thermal efficiency improvement Lublin City Office building - PLN 1.6 mln,
- construction of a sports arena at Gimnazjum (lower secondary school) No. 10 - PLN 4.0 mln,
- thermal efficiency improvement of Power Engineering School Complex - PLN 1.4 mln,
- modernisation the First and Second Level Music School facilities - PLN 2.0 mln,
- reconstruction and development of the athletics venue including facilities - PLN 30.0 mln,
- construction of a nursery in Lublin - PLN 3.2 mln,
The total amount will exceed PLN 50 mln (approximately 2.5% of the whole Lublin City budget).
How many projects does the city carry out using EU funds, and what is their value? In Lublin City budget for 2017 expenditure provisioned for municipality own tasks implemented with the support of European funds (as of October 2017) amounts to over PLN 227.6 million. At the beginning of 2017 47 projects co-financed from European funds were planned.
How open is the city to outside investors? Does it offer special incentives and investment development programmes? What are they? In Lublin, the maximum level of public aid throughout the country is achievable, both with regard to public aid available in the special economic, as well as EU funds. The City of Lublin offers investors also exemption from real property tax for both undeveloped land and buildings. For real property located within the SEZ, exemption is granted for a period of 4 years, and for real estate located in the remaining area of the city, property tax exemption is available for up to 3 years, depending on the investment parameters of the new project. The Department of Strategy and Investor Relations of the City of Lublin is responsible for supporting investors and investment processes in the city, which is a business-oriented unit. Each project is assigned a project manager who is responsible for, among other things, organizing city study visits, networking with research, scientific institutions and local business ecosystem.
Which factors make the city attractive to invest in? What is the potential of the city? (location, infrastructure, proximity to expressways connecting, human capital) Lublin is the ninth largest city in Poland with its population of more than 340,000. Lublin is the centre of the Lublin Metropolitan Area with 608,000 inhabitants. This forms a large internal market of high absorbability. The city enjoys a favourable location between Warsaw and the eastern border of the country (Warsaw 171 km, Terespol 148 km, Hrebenne 85 km A skilled personnel base prepared by 9 higher education institutions teaching about 65,000 students and delivering 18,000 graduates each year. The city is viewed as attractive in terms of location for direct foreign investments also by industry specialists. The city has 180 thous. sq m of modern office space and 160 thous. sq m of existing modern warehouse space. The analytical team of the Financial Times Group has found Lublin to be one of the most attractive city for doing business in Poland. In the FDI ranking "Polish Cities of the Future 2015/16", it ranked second among large cities in the Cost Effectiveness category.
Which major real estate investors have decided to invest in the city in 2017? Who are the potential investors in the city? Major players on Lublin real property market include MLP Group SA and Panattoni Europe. Both MLP and Panattoni Park are expanding their warehouse space held for rental. Moreover, in 2017 CLM Sp. z o.o. S.K. (limited liability company, limited partnership) put to use, after its renovation, 35 thous. sq m Mełgiewska Logistic Centre. The renovation works were focused mainly on the adjustment of the building to current standards. As a part of modernisation the container terminal was created. Among major lessees there were i.a. Perła - Browary Lubelskie SA. In our city investment operations are also carried out in the hotel market. In September 2017 was opened a hotel belonging to a famous hotel group "Hampton by Hilton". Also Ibis Budget, belonging to Accor Hotels group in the category of budget hotels, is investing in Lublin. Currently, according to the data of Lublin City Office about 1,000 hotel beds should be created to satisfy the the increasing demand.
How good is the zoning plan coverage? Currently Lublin's zoning plan covers around 43% of city's area.
What is the waiting time for building permits? The average time of issuing a building permit for building structures is 28 days.
Why does the city deserve the award? (please stress the most important factors that make the city friendly to investors) Lublin places strong emphasis on its competitiveness on the investment map of Poland and Europe. To achieve this it has been constantly investing in improving the road infrastructure, developing special economic zone and airport. A strong argument for investing in our city is also the proximity of the Eastern Market. However, the most valuable asset of the city is a constant accessibility of human resources - 65 thous. students (10% of them are foreign students) studying at 9 Lublin Universities
City
Lublin
General information about the city in relation to the real estate market
Since the beginning of 2014 Lublin has grown in popularity among developers offering modern warehouse, office and hotel spaces. This trend results from a growing demand for this type of services in our city. Warehouse space increased from 25,000 sq m in 2014 to over 160,000 sq m in 2017, while over 53 thousand sq m are still in preparation. This space is mainly centred in the eastern part of the city, easily accessible from the ring road and the airport, where the special economic zone is located. Office space expanded from 130 thousand sq m in 2014 to almost 180 thousand sq m in 2017, while over 28 thousand is still in preparation. Moreover, currently Lublin hotel market is offering 1 230 rooms in 29 hotels. Room occupancy rate in Lublin in 2016 amounted to 36.8% and in the group of province capitals in Eastern Poland was higher than in Rzeszów and Kielce.
Financial investment budgeted in public projects in 2017 in PLN
In Lublin City budget for 2017 capital expenditure amounts to over PLN 424.7 million, including investment operations and capital purchases amounting to PLN 387.2 million. The most expensive task being implemented this year is extending Bohaterów Monte Cassino street. New 1.2 km dual carriageway will be put into operation in the summer of 2018. An estimated cost of this task is PLN 87.5 million.
The most important projects completed between October 2016 and September 2017
One of the priorities accomplished by Lublin during this period was putting into operation of Lublin western ring road and revitalisation of the Lithuanian Square. A section of Lublin western ring road complements already functioning northern and eastern section of the city's ring road. The ring road keeps transit traffic outside the city, thus reducing the congestion. The other investment operation - the Lithuanian Square is a central city meeting place with the approximate area of 35 thousand sq m. A basic assumption of revitalisation was eliminating motor vehicles traffic and building a multimedia fountain complex. As a part of this investment operation the interactive complex was created which enables organisation of fountain shows combining five functions: water, light, sound, image and lasers. It is worth mentioning that the revitalisation of the the Lithuanian Square had the highest number of votes and won in the competition Eastern Poland Top Investment Operations 2017!
Major projects planned for 2018
The preparations for the construction of a dual carriageway connecting Kunickiego and Wrotkowska Street have begun. New street will be the last element of so called inner Lublin ring road with two lanes of traffic in each direction. Scope of work will also include construction of a grade-separated crossing with an industrial spur. Tracks would run under the roadway and would be closed in a steal tube. Bike paths and pavements will be built on both sides of the street. The road will be approximately 1.5 km long. An estimated cost of the investment operation is PLN 58 million. It is also planned to reconstruct/develop the city's central street - Racławickie Avenue and Honorary Blood Donors Roundabout along with an indispensible infrastructure (e.g, bus passes, paths for pedestrians and cyclists, street lights, reconstruction of a trolleybus traction). An estimated cost of the investment operation is PLN 50 million.
Major current projects
1) Low carbon emission network of public transport for the northern part of Lublin Functional Area along with the preparation of an electronic ticket system for an agglomeration transport - PLN 174.8 million (including PLN 123.8 million from EU funds). 2) An Integrated Transport Centre for Lublin Functional Area - PLN 190.9 million (including PLN 136.7 million from EU funds). 3) Construction of a new alignment of DW 809 road in Lublin between an intersection of Bohaterów Monte Cassino and Wojciechowska street to Sławin transport node - PLN 191.5 million (including PLN 155 million from EU funds). 4) Reconstruction of a strategic public transport corridor including the purchase of a rolling stock for the central part of LOF - PLN 105 million (including PLN 68 million from EU funds). 5) Construction and reconstruction of the following sections of DW 835 in Lublin - PLN 165.2 million (including PLN 124 from EU funds).
Financial resources (in PLN) for investment in each of the last five years
Capital expenditure incurred within last 5 years: - 2012 PLN 362.3 million, - 2013 – PLN 562.5 million, - 2014 – PLN 658.9 million, - 2015 – PLN 363.9 million, - 2016 – PLN 217.1 million.
The proportion of the city’s budget invested in projects for buildings in relation to other expenditure (in pct and PLN)
- construction of a primary school, kindergarten and a cultural centre at Berylowa street (commencement of works) - PLN 3 mln,
- modernisation of a building of Primary School No. 32 - PLN 80 thous.,
- thermal efficiency improvement of Primary School No. 25 - PLN 1.2 mln, Primary School No. 7 - PLN 1.9 mln and of School Dormitory No. 1 building - PLN 1.0 mln,
- modernisation of School Complex No. 4 facilities - PLN 2.5 mln,
thermal efficiency improvement Lublin City Office building - PLN 1.6 mln,
- construction of a sports arena at Gimnazjum (lower secondary school) No. 10 - PLN 4.0 mln,
- thermal efficiency improvement of Power Engineering School Complex - PLN 1.4 mln,
- modernisation the First and Second Level Music School facilities - PLN 2.0 mln,
- reconstruction and development of the athletics venue including facilities - PLN 30.0 mln,
- construction of a nursery in Lublin - PLN 3.2 mln,
The total amount will exceed PLN 50 mln (approximately 2.5% of the whole Lublin City budget).
How many projects does the city carry out using EU funds, and what is their value?
In Lublin City budget for 2017 expenditure provisioned for municipality own tasks implemented with the support of European funds (as of October 2017) amounts to over PLN 227.6 million. At the beginning of 2017 47 projects co-financed from European funds were planned.
How open is the city to outside investors? Does it offer special incentives and investment development programmes? What are they?
In Lublin, the maximum level of public aid throughout the country is achievable, both with regard to public aid available in the special economic, as well as EU funds. The City of Lublin offers investors also exemption from real property tax for both undeveloped land and buildings. For real property located within the SEZ, exemption is granted for a period of 4 years, and for real estate located in the remaining area of the city, property tax exemption is available for up to 3 years, depending on the investment parameters of the new project. The Department of Strategy and Investor Relations of the City of Lublin is responsible for supporting investors and investment processes in the city, which is a business-oriented unit. Each project is assigned a project manager who is responsible for, among other things, organizing city study visits, networking with research, scientific institutions and local business ecosystem.
Which factors make the city attractive to invest in? What is the potential of the city? (location, infrastructure, proximity to expressways connecting, human capital)
Lublin is the ninth largest city in Poland with its population of more than 340,000. Lublin is the centre of the Lublin Metropolitan Area with 608,000 inhabitants. This forms a large internal market of high absorbability. The city enjoys a favourable location between Warsaw and the eastern border of the country (Warsaw 171 km, Terespol 148 km, Hrebenne 85 km A skilled personnel base prepared by 9 higher education institutions teaching about 65,000 students and delivering 18,000 graduates each year. The city is viewed as attractive in terms of location for direct foreign investments also by industry specialists. The city has 180 thous. sq m of modern office space and 160 thous. sq m of existing modern warehouse space. The analytical team of the Financial Times Group has found Lublin to be one of the most attractive city for doing business in Poland. In the FDI ranking "Polish Cities of the Future 2015/16", it ranked second among large cities in the Cost Effectiveness category.
Which major real estate investors have decided to invest in the city in 2017? Who are the potential investors in the city?
Major players on Lublin real property market include MLP Group SA and Panattoni Europe. Both MLP and Panattoni Park are expanding their warehouse space held for rental. Moreover, in 2017 CLM Sp. z o.o. S.K. (limited liability company, limited partnership) put to use, after its renovation, 35 thous. sq m Mełgiewska Logistic Centre. The renovation works were focused mainly on the adjustment of the building to current standards. As a part of modernisation the container terminal was created. Among major lessees there were i.a. Perła - Browary Lubelskie SA. In our city investment operations are also carried out in the hotel market. In September 2017 was opened a hotel belonging to a famous hotel group "Hampton by Hilton". Also Ibis Budget, belonging to Accor Hotels group in the category of budget hotels, is investing in Lublin. Currently, according to the data of Lublin City Office about 1,000 hotel beds should be created to satisfy the the increasing demand.
How good is the zoning plan coverage?
Currently Lublin's zoning plan covers around 43% of city's area.
What is the waiting time for building permits?
The average time of issuing a building permit for building structures is 28 days.
Why does the city deserve the award? (please stress the most important factors that make the city friendly to investors)
Lublin places strong emphasis on its competitiveness on the investment map of Poland and Europe. To achieve this it has been constantly investing in improving the road infrastructure, developing special economic zone and airport. A strong argument for investing in our city is also the proximity of the Eastern Market. However, the most valuable asset of the city is a constant accessibility of human resources - 65 thous. students (10% of them are foreign students) studying at 9 Lublin Universities

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