Krakow is changing its image and its landscape. Will it be marked with modern architecture and skyscrapers in the future? With a fast-growing economy, huge inward investment from private sources and the EU, and a booming tourism sector, Krakow has become a target city for businessmen and private investors.
Attractive employment opportunities and a qualified work force draw new inhabitants to the city, resulting in increased demand for office space.
In the last several years, many modern office blocks have been constructed.
Currently few office buildings are under construction and about 20 new investors wait for a building permit.
Given the historical character of architecture in the city center, Krakow has no “business center” typical of other cities. New office schemes are situated mainly on the outskirts and beyond the center, in locations of high accessibility. The city’s main investments include development of the transport infrastructure and producing favorable conditions for business everywhere in Krakow, except the Old Town.
Nevertheless, last year office accommodations concentrated close to the historical part of the city – in the vicinity of ul. Armii Krajowej, ul. Lubicz, Mogilskie and Grzegorzeckie Roundabouts. Next year a modern construction will appear on the crossroad of ul. Lea and Armii Krajowej.
The modern office market in Krakow has been developing dynamically since the late 1990s, but the greatest increase was recorded betweens 2000 and 2002.
After that period, developers’ activity considerably fell, only to grow once again in 2006 and 2007.
This demand is forecast to remain strong. Most units in attractive locations are being sold early in construction or even at the planning stage.
An international company, CB Richard Ellis, which is monitoring the real estate market, estimates that in 2009 Krakow will have 15 new modern office blocks and the new office supply is going to reach an additional 127,000 square meters.
There are many advantages that make those who mean business perceive Krakow as the place for investments and business activity.
Krakow is not only the scientific, administrative, financial and economic center of the region. There are more than a hundred research and development institutions and 18 universities.
The exceptionally powerful standing of the city as a research and scientific center is a highly favorable feature for development of the high technology sector in Krakow. Such companies as Google, HCL Technologies, UBS and Electric 80 have recently entered Krakow.
At the same time companies that have already established in the city continue to develop.
According to a survey conducted by BBC, Krakow is second only to Warsaw as a city attractive to visit for business purposes.