Łódź is at the vanguard of mixed-use regeneration in Polish cities
The city of Łódź is located in Poland’s industrial heartland, creating both unique needs and unique opportunities, according to deputy mayor Adam Pustelnik.
“Central Poland is a pretty unusual location because we are industrially focused and also industrially dependent,” he says.
The city has been promoting its new industrial zones to prospective investors, including at trade fairs. “It’s a pretty unique product because of the government’s infrastructure investments,” adds Pustelnik. “We are offering roughly 500 hectares within the administrative boundaries of the city, on highway junctions. We are also presenting a concept of our city centre’s revitalisation.”
The city has invested approximately €1 billion in the regeneration of the historic parts of the city. ESG has become a priority for the city and its investors, opening up opportunities for sustainable investment. “When you look at financing requirements and the demands of corporate partners, if you don’t have a sufficient focus on ESG, basically you are lost,” Pustelnik explains.
“That’s why we became the first city in Poland to issue green bonds. We invest an enormous amount of money to change our energy mix. We are at the forefront of investment into Poland’s sustainable economy because, as a typically industrial area, we have double the need in this segment.”
A once down-at-heel post-industrial town, Łódź has become something of a regeneration success story with its iconic red-brick former factory buildings being repurposed into mixed-use facilities.
As a city with a rich history in the textile industry, Łódź was once home to some of the most impressive factories in Europe. With the decline of the textile industry, many of these factories were left abandoned and fell into disrepair. In recent years, these former relics have become buzzing cultural, entertainment, dining, office and living spaces.
‘Unique vibrant spaces’
“By transforming these historic buildings, Łódź can create unique, vibrant spaces that attract new residents, businesses, and tourists,” says Pustelnik. “Such projects can revitalise underused areas of the city, foster social interaction, and support local economic growth.”
Łódź has the second highest number of mixed-use projects in Poland, after Warsaw, according to a report from Colliers Poland.
Investor interest in the development of mixed-use complexes in Polish cities has exploded in the past decade. OFF Piotrkowska in Łódź – a mixed-use development in the former Ramisch cotton mill – was among the first.
“Looking at the popularity of the projects implemented so far, it should be remembered that the strategic assumptions for their implementation were made long before the pandemic, and yet their offer remains relevant to the current needs of users,” wrote Agnieszka Winkler, associate director, strategic advisory for Colliers, in the report.
“Projects such as the Norblin Factory, Browar Warszawskie, Elektrownia Powiśle in Warsaw or Monopolis in Łódź show that these complex projects are at the same time characterised by a unique flexibility, enabling them to adapt to dynamic changes that occur on the market.”
Revitalised factories
Monopolis is a set of converted factories now housing restaurants, bakeries and an art gallery, plus offices and event spaces.
“These revitalised factories are a source of great pride for Łódź residents, who see them as a testament to the city’s enduring spirit and resilience. In a country where the central square is often the focal point of city life, Łódź stands out as a city where the proud tradition of industry is woven into the very fabric of the city itself,” says Pustelnik.
“As Łódź continues to grow and develop, these factories will play an increasingly important role in the city’s future. They are a shining example of how old can meet new, and a testament to the enduring legacy of one of Poland’s most remarkable cities.”
Read more about foreign direct investment in the October edition of RealFDI
