Demolitions in city centers as a way to acquire land for investments.

Although there are many public and commercial buildings in the area, it does not mean that all of them are treated as monuments. Many of them have a purely commercial character, without any historical or cultural value. Therefore, the future of these buildings largely depends on the property owners. As there is no increase in space in city centers, investors closely monitor long-developed plots of land in the hope that after buying them, they will be able to free up space for new structures.

The Specter of the Bulldozer

So far, demolitions have been carried out (or are planned) for buildings such as the Galeria Plaza in Krakow, the Philips office buildings in Lodz, or the Atrium International in Warsaw. High land prices, lack of space for new constructions, low energy efficiency of old buildings, as well as high costs of renovations and monthly maintenance – all of this influences property owners’ decisions.

Prospects for Cities

The urban tissue, especially city centers and surrounding areas in the largest Polish cities, will undergo dynamic transformations in the near future. Large, outdated office buildings cease to be relevant in the era of remote work. Along with them, local catering companies, restaurants, but also many other service points decline. Many older shopping malls face the same fate. The increase in the number of cars in cities also affects consumers’ expectations, including the possibility of using above-ground or underground parking spaces. In comparison to Western Europe or the United States, office buildings, hypermarkets, and shopping centers in Poland already have many improvements and new solutions. This problem is still fresh and young in our country.

Opportunities and Risks

Before making difficult decisions, it is worth considering the average price per square meter of land in a given area, the level of sales of services or products generated by companies located in that location, as well as many other parameters, including maintenance costs and energy efficiency. Maximizing investment potential also matters.