For several decades, the mixed-use investment market in Poland has been gradually evolving, transforming the landscape of major Polish agglomerations. The origins of this trend date back over two decades, but it’s only in the recent years that this sector has experienced the most dynamic growth. Multifunctional facilities, which were once primarily focused on trade, are now becoming comprehensive urban life hubs, integrating various functions. In this context, it is worth examining not only the current trends but also the future of mixed-use investments in the Polish real estate market.
Mixed-Use Investment Market in Poland
The multifunctional investment market in Poland has been consistently growing for over 20 years[a][1]. Although the first projects of this kind appeared soon after 2000, it’s only in the past few years that this sector has entered another phase of professionalization, and mixed-use properties have gained significant popularity. Today, they are mentioned as one of the leading trends in the real estate sector, influenced by several factors.
The potential for city-building projects was noticed in our country over 20 years ago, although early multifunctional investments differed from those implemented now. By definition, they have always combined several functions, with the trade sector dominating in the past. Currently, the vast majority of projects offer three basic areas: commercial, office, and residential, as well as a complementary gastronomic area. Their structure depends on the specific location on the city map. In my opinion, it is the possibility to supplement the missing functions in a given area that makes mixed-use investments popular. Developers, in cooperation with local governments, are able to change the face of entire districts. We have been implementing such investments throughout Poland for years – examples include Browary Warszawskie, the emerging Towarowa22 in Warsaw, Fuzja in Łódź, and soon as part of the WITA project, the format will also debut in Kraków. Thus, we respond to the real needs of local communities, while participating in the development of the city in line with sustainable urbanism trends – says Rafał Mazurczak, Chief Operating Officer at Echo Investment.
Over time, the subcategories of the residential function offered by these projects also evolve. Most often we deal with freehold apartments (81%), especially in the largest investments, long-term commercial leasehold (64%), and long-term public leasehold (23%)[b][2]. However, it should be noted that increasingly, in relation to the demographic structure and socio-economic circumstances, dormitories, co-living spaces, and senior housing are also emerging.
Mutual Benefits for Cities, Communities, and Developers
Understanding that the traditional approach to planning is insufficient today is key to success in the real estate market. The apartment and its immediate surroundings currently serve not only as a place of refuge. More and more often, they also serve as a place of work, relaxation, recreation, active rest, contact with nature, and neighborhood integration. City-building projects are characterized by multifunctionality, which from the community’s perspective significantly affects the standard and comfort of living in a given location.
At Echo-Archicom Group, we believe that the developer’s responsibility is to implement investments that complement the existing urban fabric, becoming an integral part of it. City-building projects fit into the concepts of 15-minute cities and the third place, which in simple terms assume that residents receive everything necessary for everyday life, work, and relaxation near the estate. In this spirit, for the first time in Krakow, we are implementing the WITA project, which assumes the construction of both residential and office buildings enriched with a commercial and service area. The central location in the historical heart of the city, where such projects for various reasons remain rare, meets the needs of the community, individual residents, and hundreds of thousands of visitors – not only in terms of purchase of freehold property, investment, but also short- and long-term rental – adds Dawid Wrona, Chief Operating Officer at Archicom.
Mixed-use investments have a city-building effect, meaning they “live” around the clock and contribute to a higher standard of living for residents. However, it’s not only the surrounding communities that benefit from city-building projects. Such investments also add value from the city authorities’ perspective. In cooperation with development companies, they jointly transform the face of entire districts, increasing satisfaction with life in a given place and driving development through the expansion of commercial and service infrastructure, communication, educational institutions, and many other facilities needed for comfortable living. Therefore, everything indicates that city-building projects will shape the landscape of sustainable and modern cities of the future.
[1] Multifunctional: Characteristics of Mixed-Use Investments in Poland and Around the World, Think Co, 2021
Source: https://managerplus.pl/dynamiczny-rozwoj-inwestycji-mixed-use-w-polsce-przeksztalca-krajobraz-miast-78240
