Newsletter 02/2010
Newsletter 02/2010
 

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Newsletter 02/2010
2012 – Revolution on Warsaw Roads, Revolution on Real Estate Market?!

Increased pace of works leading to completion of planned road scheme within Warsaw agglomeration could be noticed recently – due to Euro 2010 as the most important reason. Taking into account 3 year perspective, road scheme within Warsaw agglomeration shall change substantially.

Conception of Main Road Scheme of Warsaw

In most general words, conception of main road scheme of Warsaw is based on completion of three major Warsaw ring roads: Inner-City Ring Road, City Ring Road and Express Ring Road. Phased Ring Road can be distinguished as well, however its route covers on most stretches with Express and City Ring Roads. All mentioned ring roads shall comprise of all: existing stretches of roads and streets, reconstructed stretches and newly constructed segments. Together with roads coming radialy out of the city centre, ring roads shall create effective road scheme.

Completion of such large and complex scheme must be extended in time. In consequence, together with advance in construction works, attractiveness of particular areas of Warsaw and neighbouring communes shall change. Majority of planned scheme is planned to be completed until 2012.

Considering construction plans of particular roads we can notice that special emphasis was put on construction road scheme in western and south-west parts of Warsaw agglomeration. Such approach results from planned completion in 2012 A2 motorway up to Konotopa Junction and necessity of directing the traffic from A2 Motorway to Warsaw. Development of road system in northern and north-east areas of Warsaw is of great importance as well, as its task is to streamline communication from fast developing right-bank Warsaw districts and sub-Warsaw communes to left-bank Warsaw.

South-West Section of Warsaw

In west and south-west areas of Warsaw S8 expressway connecting Konotopa and Prymasa Tysiąclecia junctions in under construction at the moment. Moreover, mid section of Warsaw Southern Ring Road connecting Lotnisko and Puławska junctions, as well as NS Route S79 connecting Lotnisko and Marynarska junctions are under construction. Completion of Warsaw Southern Ring Road from Knotopa junction to Lotnisko junction, completion of section of S7/S8 expressway connecting Salomea and Wolica junctions, and construction of city section of NS Route are planned until 2012.

NS Route
NS Route shall become one of major city roads of inter-district importance. The route shall connect S8 expressway in the north to S79 route in the south. As the route shall pass predominantly urban areas, it shall improve accessibility of already invested properties, which at attractiveness shall increase at the same time.

Warsaw Southern Ring Road and S8 section from Konotopa to Prymasa Tysiąclecia Junctions
According to analysis predicting traffic flow, Warsaw Southern Ring Road and S8 section from Konotopa to Prymasa Tysiąclecia junctions shall predominantly serve to direct in-flow and out-flow traffic in Warsaw. We expect that attractiveness of areas influenced by mentioned road developments shall increase, catching the interest of developers interested in either residential, or commercial developments – business parks, retail centres or warehouses.

At the moment time required to commute to city centre is shortened – in-flow and out-flow traffic is streamlined – areas, which suffered poor access to city centre shall become more attractive for living – as prices shall become lower than within areas of high density of developments. This shall result in supply of new residential developments. Some prognosis predicting strong increase in new residential developments in Bemowo – district which is located within discussed area – may serve as confirmation for above thesis.

Areas located in close vicinities of future major junctions of Express Ring Road seem to be ideal for retail centres and warehouse parks as per very good accessibility.

S7/S8 Salomea – Wolica Route and S79 Route
Areas in vicinities of planned both S7/S8 and S79 Routes seem to be specific pearl on real estate market. The areas are ideal for locating business parks and warehouse developments. Major advantage is future access to Warsaw Southern Ring Road and convenient drive out towards Upper Silesia and Cracow.

North-East Areas of Warsaw

Both completion of I stage of North Bridge Route from Modlińska street to Pułkowa street including bridge crossing over Vistula river, and extension of Toruńska Route from Modlińska junction in Warsaw to Piłsudskiego junction in Marki are planned to be delivered until 2012.

Both road developments streamline communication between Białołęka and Targówek districts on right bank with left bank Warsaw. Better communication to city centre shall increase attractiveness of Białołęka district and contribute to further extension of residential developments.

Summary

Road accessibility is one of the major factors influencing attractiveness of particular property. Attractiveness of particular Warsaw areas and districts shall change substantially due to new road developments in the pipeline, which are carried out on a very large scale and in fast pace. There is no doubt that attractiveness of areas affected by carried out and planned investments shall increase significantly. Revolution not only on Warsaw roads, but on real estate market as well is knocking on the door.

At the moment new developments in vicinities of future ring roads are carried out, and some have already been delivered. At the moment accessibility of these developments in many cases is unsatisfactory, which results in lower demand. However it is obvious, that developments in mentioned areas shall turn out to be successful. Investors, who as first noticed potential of described areas, shall see pertinence of taken decisions regarding either location of business activity there, or construction of warehouses / offices. These players shall be true winners, as they have taken a chance to be in the location which shall become a pearl soon.

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