Lublin with high development dynamics - supports innovation and attracts investors
Table of contents
The investment potential of Eastern Poland is growing, as evidenced by Lublin, which received an overall rating of 7.1/10 in this year's edition of the Business Environment Assessment Study (BEAS). The high scores awarded to the city by investors are due to the fact that it is one of the leading academic centers in Poland, supporting the development of entrepreneurship incubators and new technologies. Lublin consistently implements a strategy to attract companies from the IT sectors and modern business services BPO/SSC. An opportunity for further dynamic development of this agglomeration is the increasingly important trend of nearshoring. Thanks to its strategic location close to the border with Ukraine and Belarus, and good transport infrastructure, it is becoming a key logistical base for companies targeting the markets of Eastern Europe.
The fourth edition of the Business Environment Assessment Study (BEAS) report, created by Antal and Cushman & Wakefield, and supported by Baker McKenzie, PAIH, Employers of Poland (Pracodawcy RP), Pro Progressio, and Vastint, reveals investment plans of companies for 2023-2025 in Polish cities. Poland maintains and strengthens its position as a leader in attracting investments, both domestic and foreign. Lublin is currently the largest economic and academic center in Eastern Poland, an active participant in the network of cooperation of European and global metropolises, ranked among the most dynamically developing Polish agglomerations and leading in rankings of sustainable development, smart cities, absorption of EU funds, and investors.
Favorable Investment Conditions
As the most developed city in Eastern Poland in terms of investment potential, Lublin has been experiencing dynamic economic growth in recent years, making it increasingly attractive for companies looking to establish their business here. In 2022, it was recognized by "fDi Magazine" as one of the most attractive future cities in Central and Eastern Europe.
Lublin is a dynamically developing city, a leader in Eastern Poland not only in the economic field but also in cultural and academic areas, increasingly effectively competing with the top Polish cities. Investments in infrastructure, care for the quality of life, and excellent cooperation with universities and the socio-economic environment make the city an attractive location for manufacturing plants and branches of national and international companies in the modern business services sector. With the growing community of foreign students and the inclusion of a large number of refugees from Ukraine, Lublin is reclaiming its flagship, multicultural character - explains Dr. Mariusz Sagan, Director of the Strategy and Investor Service Department, Lublin City Hall.
The city is increasingly attracting workers from various regions of Poland and from Ukraine, thanks to favorable living conditions, which are also noticed by business representatives, as confirmed by the high rating of 7.8/10 for this area in the report.
Vibrant Job Market
The advantage of the Lublin agglomeration's labor market is the good access to a diverse, qualified pool of specialists and experts with competencies in IT, sales, accounting, finance, administrative, and linguistic fields. Over 600,000 people live here, including more than 180,000 with higher education. This is partly due to Lublin's significant educational potential - nine higher education institutions produce annually between 15,000 to 20,000 graduates, ready to employ their talents. Undoubtedly, this is one of the magnets attracting entrepreneurs and foreign investors.
Over the last four years, there has been a revitalization among successively established manufacturing plants, which provide jobs for both production staff and those in specialized, engineering, or managerial positions. Companies recognize Lublin's attractiveness as an academic city with an available student base, as well as the potential generated around numerous initiatives promoting innovation. In recent years, investments in Lublin include the German company Data Modul, which opened in Lublin's Felin area, the French Varroc Lighting Systems (now Plastic Omnium) in Niemce, Turck, and the most recent investment by Trilux, which chose Świdnik for a production and research project. It's also worth mentioning the investment by DB Schenker, which opened a branch in the Świdnik Economic Activity Zone - explains Aleksandra Kurasiewicz, Senior Client & Team Manager, Engineering & Operations, Antal.
Convenient Location and Rapid Infrastructure Development with the Airport Leading the Way
For companies operating in both Eastern and Western markets or planning expansion into these regions, Lublin is seen as an excellent place for business development and establishing a logistical base. The proximity to the borders with Ukraine and Belarus, as well as an excellent network of road connections, work in its favor - as a result, the infrastructure received a rating of 7.2/10 in the report.
Lublin is home to the largest transportation hub in Eastern Poland. In recent years, the completion of the S17 road, which opened a fast connection with Warsaw, and a section of the S19 (Via Carpatia) between Lublin and Rzeszów, part of the trans-European corridor leading from Lithuania to Greece, have been notable achievements. Work is ongoing on another section of the S19 that will connect Lublin with Białystok. The construction phases of sections of S17 leading through Zamość to the Hrebenne border crossing and S12 leading through Chełm to the Dorohusk crossing are also underway. The development of road infrastructure heralds the influx of new business - says Agnieszka Gułaś, Senior Negotiator, Cushman & Wakefield.
In recent years, the city's accessibility has increased, and the international airport serves as the city's showpiece. In March 2023, Port Lotniczy Lublin SA filed an application for permission to build a cargo terminal, with the new hall's commissioning planned for 2024. This will enhance the export-import capabilities of companies located in the Lublin Voivodeship and serve as another accelerator for the region's development.
Lublin's Office Market Grows in Line with Business Potential
Lublin is the seventh-largest office market on Poland's regional map, where the stock of modern space has exceeded 200,000 sqm, reaching over 220,000 sqm in 2023. It is the largest and most mature market in this part of Poland. Despite the supply that has occurred in recent years, the vacancy rate has been steadily decreasing – in the fourth quarter of 2023, it reached 11.9%. This is due to high demand, which in 2023 amounted to over 21,600 sqm. Currently, several investments are in the design phase, with the most important being the next stages of the CZ Office Park and Gęsia projects, and a new office building planned near the Honorowych Krwiodawców roundabout. The implementation of these projects seems necessary to effectively reduce the risk of a supply gap appearing on the Lublin market in the coming years - says Michał Grabowiecki, Senior Negotiator, Cushman & Wakefield.
The city's investment climate, as well as the dynamically developing office space market, favor the growing interest in Lublin as an attractive place for business development - in recent years, there has been increased activity by companies from the modern business services and IT sectors. Currently, the city hosts several dozen centers from the BPO/SSC/IT industry, employing over 8,000 people in Lublin. Moreover, Lublin's economic traditions and the geographical conditions of the region have contributed to the development of industries such as automotive, logistics, biotechnology, and food processing. The analytical team from the "Financial Times" group recognized Lublin as one of the most attractive cities for business in Poland in terms of location for direct foreign investments.
About BEAS
The "Business Environment Assessment Study" was conducted using the CAWI method among 1,290 decision-makers of companies in Poland from July 31 to August 25, 2023. Reports developed as part of this and the previous edition of the project are available on a new, interactive portal that allows for the comparison of key indicators for cities and the downloading of selected compilations at www.investmentpotential.pl
About ANTAL
Antal is a leading company in the CEE region, providing solutions in the field of permanent recruitment, HR consulting, and outsourcing. The foundation of our success lies in the high quality of services offered and the people whose capital is the knowledge accumulated over 26 years of the company's operation. We create methods and tools that exceed customer expectations and market standards, while being a leader in sustainable transformation in the industry. Our support is very broad - from carrying out comprehensive permanent recruitment processes, through outsourcing services, including RPO and contracting, to Employer Branding actions, HR Consulting, and providing comprehensive market research and analysis services. www.antal.pl
About CUSHMAN & WAKEFIELD
Cushman & Wakefield (NYSE: CWK) is a leading global firm providing services to property owners and tenants. It employs about 52,000 people in approximately 400 offices and 60 countries worldwide. In 2022, its revenue was $10.1 billion. The company's key services include property, facility, and project management, leasing advice, capital markets transactions, and valuations. For its culture and efforts towards diversity, equality, and inclusion, as well as ESG and other initiatives, Cushman & Wakefield receives many awards and distinctions in industry or business competitions. More information can be found at: www.cushmanwakefield.com
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Martyna Petrus, PR Specialist Antal
mail: martyna.petrus@antal.pl
tel. 664 926 909
