Besieged again?
Regional marketsAdvertisement
Częstochowa, one of Poland’s better known cities, is finally shaking off its apathy. Retail investments are progressing while the housing market is also looking up. But what is the true potential of a city famous for its monastery?
More than 4 mln pilgrims visit Częstochowa every year. Crowds of tourists also flock to Jasna Góra, although local citizens complain that very little is happening on the real estate market as well as about a clear lack of capital. But investors are feeling that bit more optimistic, so new projects are surely in the offing.
Modern retail on its way
Retail developers are united in praise of Częstochowa. Piotr Kaszyński, a partner at Cushman & Wakefield, believes that: “Częstochowa is certainly a very attractive city, if only due to the size of its population – around 250,000 – and the relatively high per capita annual income of EUR 4,061.” Currently, retail space in the city stands at around 110,000 sqm. Katarzyna Michnikowska of the same agency adds: “Three shopping centres have now opened in the city: M1, Tesco and Auchan – all in the suburbs. The principal shopping high street is al. Najświętszej Maryi Panny, where you can find a CinemaCity multiplex together with a small mall. Non-grocery hypermarkets Castorama and Obi add to the available shopping, together with a chain of supermarkets and grocery discount stores, as well as local retailers including the Jagiellończycy centre.
Things about to happen
The American Polimeni developer and the stock exchange listed Globe Trade Centre (GTC) are among the competitors as local retailers. This August, Polimeni purchased the Merkury department store, which had existed since the mid-1970s and which the developer is intending to modernize. The rentable space of the new Częstochowa Mall will be 8,600 sqm, with the investment to cost app. EUR 19 mln.
For its part, GTC has purchased around 4-ha of land on a former island on the Warta River, which was once the site of a paper mill, between ul. Krakowska and DK1. GTC originally prepared the concept for a shopping and entertainment centre of around 65,000 sqm for a 9-ha site; but since the company bought a smaller plot, this means the plans have to be amended. Mariusz Kozłowski, one of GTC’s board members, will only reveal that: “The spot where we are planning our investment is on the main highway linking Warsaw with southern Poland, which means it could become a regional centre. We are counting on the city council approving the development plan for this location, which would allow GTC to build a centre certain to be popular with the local people.”
And there are yet more plans for retail investment. Andrzej Olszewski, the owner of the Atena Real Estate Agency also mentions several smaller shopping malls to be developed by local entrepreneurs of around 3,000 sqm and 8,000 sqm in the city centre.
Summing up, Piotr Kaszyński remarks: “I know of a large and attractive plot of land near the centre and am sure there is room in Częstochowa for a city centre shopping mall of the new generation.”
Office downhill
Companies looking for office space in the city have should have no problems. Admittedly modern buildings are in short supply, but unoccupied space is still available in older buildings. According to Waldemar Winiarski, who runs the Winiarscy agency in Częstochowa: “The quality is good, but not of a class ‘A’ standard, if only because of the lack of air conditioning and parking space. The Jantar building in the city centre – developed by the GSN company of Italy – is definitely a positive exception.” The Jantar office building is situated on ul. Dąbrowskiego and boasts a useable area of almost 5,000 sqm. It was built on the basis of a 1920 tenement building and still has rentable space of around 1,500 sqm available. Andrzej Olszewski also counts the Zenith building (around 2,700 sqm total space) and ul. Kawia 4/16, amongst his more prestigious office properties.
Andrzej Olszewski goes on to point out that: “No company is investing in new office buildings in the city due to the high investment risk involved. 20-30 pct of space in the centre is unoccupied and even more further out. Many firms reduced their commitment to Częstochowa after it was relegated from being the provincial to the county capital, following a restructuring of the country’s local government.”
Housing builds up
The city’s housing market is in the doldrums. Virtually no new buildings are being developed, though the interest is huge. Tadeusz Bajda, the owner of the Bajda firm remarks: “Around 100 new apartments are delivered each year, a part of which being social investments – truly a drop in the ocean of requirements”. SM Metalurg, Italians from Edilga and Kobex are active in the city.
The lack of land earmarked for housing construction amounts to an effective brake for developers. Waldemar Winiarski comments: “Only 5 pct of land in Częstochowa is covered by local spatial development plans, while developers have to wait as long as 8 months for site development conditions to be issued. That is surely something which discourages entrepreneurs from embarking upon new investments. A consequence of such a situation is spiralling land prices.” Tadeusz Bajda adds: “I have to pay an average of PLN 80 to 100 per sqm for a plot of land, though I frequently encounter offers of as much as PLN 500. Real estate owners are sensing a boom – the more so that companies, for instance from Silesia, are entering the scene, preferring to invest here rather than in their own increasingly cramped local markets.”
Częstochowa’s residents are confident that the price fever in Warsaw’s residential market and that of Poland’s largest cities will be coming soon to their own city, although slighter later than elsewhere.
Andrzej Olszewski comments: “We began noting an upsurge of prices in late 2005. This means a safe comparison could be made with current rates which are still 25-35 pct higher.” You need an average of PLN 2,500 to 3,000 per sqm to pay for a home on the primary market.
Tadeusz Bajda remarks: “Prices for our next investment, beginning next year, are going to be higher, I would say around PLN 3,500 gross. One price offered by an Italian company was for around PLN 4,700, which is very high for local conditions.”
Second hand
Waldemar Winiarski offers this overall assessment of the industry: “Prices on the secondary housing market are rapidly catching up with the primary market. They start from PLN 2,000 per sqm up to PLN 2,400. Foreigners are frequently among the purchasers, e.g. the Irish, and also Poles who emigrated to find work abroad, but plan to return and secure their future with property investments.”
Choked by the competition
No class ‘A’ modern warehouse space exists in the Częstochowa region, apart from the Silesian Business Park (16,000 sqm) currently owned by the Imak CEE fund (Akron and Immoeast). The Park is entirely leased to the ACR Logistic Poland logistics operator.
Waldemar Winiarski is of the opinion that: “Supply and demand are balanced. Transactions such as one to lease 6,500 sqm to a Dutch company take place only very rarely. But companies wanting to rent 300 to 500 sqm should have no difficulties in finding such a property.”
There are many older buildings which can satisfy local business needs. According to Grzegorz Cesarczyk, consultant in the warehousing space department of CB Richard Ellis: “You must remember that Częstochowa’s location near Piotrków Trybunalski (80 km) and Silesia (around 70 km) is not advantageous. These two centres have large amounts of modern space available, whilst still having a huge potential, which means competition from them dominates the local market. On the other hand, there is an economic zone in place in Częstochowa, which does provide some incentive for industrial development. Once constructed, the A1 motorway will also take the load off transport and energize the surrounding area.”
Ewa Andrzejewska
Modern retail on its way
Retail developers are united in praise of Częstochowa. Piotr Kaszyński, a partner at Cushman & Wakefield, believes that: “Częstochowa is certainly a very attractive city, if only due to the size of its population – around 250,000 – and the relatively high per capita annual income of EUR 4,061.” Currently, retail space in the city stands at around 110,000 sqm. Katarzyna Michnikowska of the same agency adds: “Three shopping centres have now opened in the city: M1, Tesco and Auchan – all in the suburbs. The principal shopping high street is al. Najświętszej Maryi Panny, where you can find a CinemaCity multiplex together with a small mall. Non-grocery hypermarkets Castorama and Obi add to the available shopping, together with a chain of supermarkets and grocery discount stores, as well as local retailers including the Jagiellończycy centre.
Things about to happen
The American Polimeni developer and the stock exchange listed Globe Trade Centre (GTC) are among the competitors as local retailers. This August, Polimeni purchased the Merkury department store, which had existed since the mid-1970s and which the developer is intending to modernize. The rentable space of the new Częstochowa Mall will be 8,600 sqm, with the investment to cost app. EUR 19 mln.
For its part, GTC has purchased around 4-ha of land on a former island on the Warta River, which was once the site of a paper mill, between ul. Krakowska and DK1. GTC originally prepared the concept for a shopping and entertainment centre of around 65,000 sqm for a 9-ha site; but since the company bought a smaller plot, this means the plans have to be amended. Mariusz Kozłowski, one of GTC’s board members, will only reveal that: “The spot where we are planning our investment is on the main highway linking Warsaw with southern Poland, which means it could become a regional centre. We are counting on the city council approving the development plan for this location, which would allow GTC to build a centre certain to be popular with the local people.”
And there are yet more plans for retail investment. Andrzej Olszewski, the owner of the Atena Real Estate Agency also mentions several smaller shopping malls to be developed by local entrepreneurs of around 3,000 sqm and 8,000 sqm in the city centre.
Summing up, Piotr Kaszyński remarks: “I know of a large and attractive plot of land near the centre and am sure there is room in Częstochowa for a city centre shopping mall of the new generation.”
Office downhill
Companies looking for office space in the city have should have no problems. Admittedly modern buildings are in short supply, but unoccupied space is still available in older buildings. According to Waldemar Winiarski, who runs the Winiarscy agency in Częstochowa: “The quality is good, but not of a class ‘A’ standard, if only because of the lack of air conditioning and parking space. The Jantar building in the city centre – developed by the GSN company of Italy – is definitely a positive exception.” The Jantar office building is situated on ul. Dąbrowskiego and boasts a useable area of almost 5,000 sqm. It was built on the basis of a 1920 tenement building and still has rentable space of around 1,500 sqm available. Andrzej Olszewski also counts the Zenith building (around 2,700 sqm total space) and ul. Kawia 4/16, amongst his more prestigious office properties.
Andrzej Olszewski goes on to point out that: “No company is investing in new office buildings in the city due to the high investment risk involved. 20-30 pct of space in the centre is unoccupied and even more further out. Many firms reduced their commitment to Częstochowa after it was relegated from being the provincial to the county capital, following a restructuring of the country’s local government.”
Housing builds up
The city’s housing market is in the doldrums. Virtually no new buildings are being developed, though the interest is huge. Tadeusz Bajda, the owner of the Bajda firm remarks: “Around 100 new apartments are delivered each year, a part of which being social investments – truly a drop in the ocean of requirements”. SM Metalurg, Italians from Edilga and Kobex are active in the city.
The lack of land earmarked for housing construction amounts to an effective brake for developers. Waldemar Winiarski comments: “Only 5 pct of land in Częstochowa is covered by local spatial development plans, while developers have to wait as long as 8 months for site development conditions to be issued. That is surely something which discourages entrepreneurs from embarking upon new investments. A consequence of such a situation is spiralling land prices.” Tadeusz Bajda adds: “I have to pay an average of PLN 80 to 100 per sqm for a plot of land, though I frequently encounter offers of as much as PLN 500. Real estate owners are sensing a boom – the more so that companies, for instance from Silesia, are entering the scene, preferring to invest here rather than in their own increasingly cramped local markets.”
Częstochowa’s residents are confident that the price fever in Warsaw’s residential market and that of Poland’s largest cities will be coming soon to their own city, although slighter later than elsewhere.
Andrzej Olszewski comments: “We began noting an upsurge of prices in late 2005. This means a safe comparison could be made with current rates which are still 25-35 pct higher.” You need an average of PLN 2,500 to 3,000 per sqm to pay for a home on the primary market.
Tadeusz Bajda remarks: “Prices for our next investment, beginning next year, are going to be higher, I would say around PLN 3,500 gross. One price offered by an Italian company was for around PLN 4,700, which is very high for local conditions.”
Second hand
Waldemar Winiarski offers this overall assessment of the industry: “Prices on the secondary housing market are rapidly catching up with the primary market. They start from PLN 2,000 per sqm up to PLN 2,400. Foreigners are frequently among the purchasers, e.g. the Irish, and also Poles who emigrated to find work abroad, but plan to return and secure their future with property investments.”
Choked by the competition
No class ‘A’ modern warehouse space exists in the Częstochowa region, apart from the Silesian Business Park (16,000 sqm) currently owned by the Imak CEE fund (Akron and Immoeast). The Park is entirely leased to the ACR Logistic Poland logistics operator.
Waldemar Winiarski is of the opinion that: “Supply and demand are balanced. Transactions such as one to lease 6,500 sqm to a Dutch company take place only very rarely. But companies wanting to rent 300 to 500 sqm should have no difficulties in finding such a property.”
There are many older buildings which can satisfy local business needs. According to Grzegorz Cesarczyk, consultant in the warehousing space department of CB Richard Ellis: “You must remember that Częstochowa’s location near Piotrków Trybunalski (80 km) and Silesia (around 70 km) is not advantageous. These two centres have large amounts of modern space available, whilst still having a huge potential, which means competition from them dominates the local market. On the other hand, there is an economic zone in place in Częstochowa, which does provide some incentive for industrial development. Once constructed, the A1 motorway will also take the load off transport and energize the surrounding area.”
Ewa Andrzejewska
