Eastern Poland’s investment potential is growing, and Lublin is proof of that, with an overall rating of 7.1/10 in this year’s Business Environment Assessment Study (BEAS). The high marks awarded to the city by investors are helped by the fact that it is one of the leading academic centres in Poland, supporting the development of business incubators and new technologies. Lublin has consistently pursued a strategy of attracting companies from the IT and modern business services BPO/SSC sectors. An opportunity for further dynamic development of this agglomeration is the nearshoring trend, which is gaining importance. Thanks to its strategic location close to the border with Ukraine and Belarus and good transport infrastructure, it is growing into a key logistics base for companies targeting Eastern European markets.
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, Pro Progressio and Vastint, reveals companies’ investment plans for 2023-2025 in Polish cities. Poland is maintaining and strengthening its position as a leader in attracting domestic and foreign investments. Lublin is currently the most significant economic and academic centre in Eastern Poland, an active participant in the cooperation network of European and global metropolises, counted among the most dynamically developing Polish agglomerations, and placed at the top of rankings of sustainable development, smart cities, absorption of EU funds and investors.
Favorable investment conditions
As the most developed city in Eastern Poland regarding investment potential, Lublin has been experiencing rapid economic growth in recent years, making more and more companies want to build their businesses here. In 2022, it was named one of the most attractive cities of the future in Central and Eastern Europe by fDi Magazine.
Lublin is a dynamically developing city, a leader of Eastern Poland not only in the economic but also in the cultural and academic fields, which is increasingly competing with the top Polish cities. Infrastructure investments, attention to the standard of living and excellent cooperation with universities and the socio-economic environment make the city an attractive place to locate factories of manufacturing companies and branches of national and international companies in the modern business services industry. With the growing community of international students and the inclusion of many refugees from Ukraine, Lublin is regaining its flagship multicultural character – explains Dr. Mariusz Sagan, Director of the Department of Strategy and Investor Services, Lublin City Hall.
The city is increasingly attracting workers from various regions of Poland and Ukraine due to favourable living conditions, which are also noted by business representatives, as evidenced by the high rating of 7.8/10 for the area in the report.
Revitalized labor market
An advantage of the Lublin agglomeration’s labour market is good access to a diverse, qualified workforce of specialists, IT experts, and sales, accounting, financial, administrative or language skills. More than 600,000 people live here, including more than 180,000 with a university education. This is due, among other things, to Lublin’s high educational potential – nine universities graduate between 15,000 and 20,000 graduates a year, ready to develop talent. Undoubtedly, this is one of the magnets attracting entrepreneurs and foreign investors.
Over the past 4 years, there has been an upturn in the successive establishment of manufacturing plants, which provide jobs for both production workers and those in specialized, engineering or managerial positions. Companies recognize the attractiveness of Lublin as an academic city with an accessible student base, as well as the potential generated around numerous initiatives promoting innovation. In recent years alone, investments have been made here by, among others, the German company Data Modul, which opened on Lublin’s Felin, the French Varroc Lighting Systems (now Plastic Omnium) in Germany, the Turck company or the most recent investment by Trilux, which chose Świdnik for a production and research project. It is also worth mentioning the investment of DB Schenker, which opened a branch in Świdnik’s Economic Activity Zone – explains Aleksandra Kurasiewicz, Senior Client & Team Manager, Engineering & Operations, Antal.
Convenient location and rapid development of infrastructure, with the Airport in the lead
By companies operating in both eastern and western markets or planning to expand into those particular regions, Lublin is seen as an excellent place to develop business and build a logistics base. In its favour is its proximity to the borders with Ukraine and Belarus, as well as an excellent network of road connections – as a result, infrastructure received a score of 7.2/10 in the report.
Lublin is home to Eastern Poland’s largest transportation hub. In recent years, the S17 road, which opened a fast connection to Warsaw, and part of the S19 (Via Carpatia) on the Lublin-Rzeszow section, which is part of the trans-European corridor leading from Lithuania to Greece, have been completed. Work is underway on implementing another section of S19, which will connect Lublin and Bialystok. Sections of the S17 leading through Zamosc to the border crossing in Hrebenne and the S12 leading through Chelm to the crossing in Dorohusk are under construction. Road infrastructure development heralds an influx of new business – says Agnieszka Gułaś, Senior Negotiator, Cushman & Wakefield.
In recent years, the city’s transportation accessibility has increased, and the international airport is a landmark of the city. In March 2023, Lublin Airport SA applied for a permit to build a cargo terminal, and the new hall is scheduled for completion in 2024. This will expand export and import opportunities for companies in the Lublin region and be another gas pedal of development for the area.
Lublin’s office market grows in line with business potential
Lublin is the seventh office market on the regional map of Poland, 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 taken place in recent years, the vacancy rate has been steadily declining, reaching 11.9% in Q4 2023. High demand is responsible for this, which 2023 amounted to more than 21,600 thousand square meters. Several developments are currently in the design phase, the most important of which is the next phase of the CZ Office Park and Gęsia projects and a new office building planned at the Honorable Bloodmen traffic circle. Implementing these projects seems necessary to effectively reduce the risk of a supply gap in the Lublin market in the coming years – says Michal Grabowiecki, Senior Negotiator, Cushman & Wakefield.
The investment climate of the city, as well as the rapidly developing office space market, are conducive to the growing interest in Lublin as an attractive place for business development – the activity of companies from the modern business services and IT sectors has increased here in recent years. The city has dozens of BPO/SSC/IT centres, which already employ more than 8,000 people in Lublin. In addition, Lublin’s economic traditions and the region’s geography have translated into the development of such industries as automotive, logistics, biotechnology and food processing. An analytical team from the Financial Times Group ranked Lublin as one of the most attractive cities for business in Poland in terms of location for foreign direct investment.
About BEAS
The “Business Environment Assessment Study” survey 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 previous editions of the project are available on a new, interactive portal enabling comparison of key indicators for cities and downloading selected sets of data: www.investmentpotential.pl
About ANTAL
Antal is a leading company in the CEE region, providing solutions in permanent recruitment, HR consulting, and outsourcing. The basis 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 also being a leader in sustainable transformation in the industry. The scope of our support is very wide – from implementing comprehensive permanent recruitment processes, through outsourcing services, including RPO and contracting, to Employer Branding activities, HR Consulting, as well as providing comprehensive market research and analysis services. Visit our website: www.antal.pl
About CUSHMAN & WAKEFIELD
Cushman & Wakefield (NYSE: CWK) is a leading global firm providing services to owners and tenants of commercial real estate. It employs approximately 52,000 people in around 400 offices and 60 countries worldwide. In 2022, its revenues amounted to USD 10.1 billion. The company’s key services include property, facility, and project management, brokerage services, capital markets transactions, and valuations. For its culture and actions supporting diversity, equal treatment, and inclusivity, as well as ESG and other initiatives, Cushman & Wakefield receives numerous awards and recognitions in industry and business competitions. Additional information can be found on the website: www.cushmanwakefield.com
Martyna Petrus
PR Specialist, Antal
