What is gentrification? And does it work in Ukraine?

Gentrification (more familiar as “revitalization”) is the process so well known in the world that almost every one of us has already come across its results in one way or another. For example, in Paris, hanging out in Quartier du Marais, you can hardly think that the area has been completely gentrified. Now it is the colourful centre of the bohemian life of the world capital of love and croissants. While after the war, it was a depressed area inhabited by homeless people, people of low income and the like level of culture and sanitation.

Or take the world famous (not least due to the smile of Julia Roberts) Notting Hill in London. After World War II, destroyed by bombing, it was hastily built up with such low-quality housing that only the poor, least assimilated inhabitants - emigrants - agreed to settle there. They later made it an arena for interethnic bandit battles. It was possible to turn Notting Hill into one of the most desirable living areas without much pain: demolishing old shacks, bringing new buildings to a single architectural plan and preserving the ethnic diversity there, thanks to which it is still one of the must visit in London.

In Ukraine, however, there are no examples of such a large-scale, already implemented gentrification. Although, this does not mean that there is no interest in such projects. Quite the opposite: realizing the benefits that the revitalization of depressed districts can bring for the entire city (improvement of housing stock, smooth "overflow" of the solvent cluster of residents and entrepreneurs to these territories, and, consequently, the outflow of social outcasts, and an immediate active development of local businesses and infrastructure) , developers are increasingly considering the possibility of investing into gentrification in order to "jump-start" into industrial zones, urban voids, unsightly urban environs. Why it doesn't always work out? Every developer has its own story. Let's talk about our story – about how Pidzamche district in Lviv is being revitalized.

It is no secret for every Lviv resident that Pidzamche is a district of Lviv, but not entirely. And, in fact, both Pidzamche and Lviv residents do not consider it the very "integral part" of the city of Lion – this is another Lviv, rather peculiar, not visible on the surface. This is explained by the history of the region – the site, as we say: for a long time, workshops, enterprises, factories, mills were not just separate points on Pidzamche, this is what Pidzamche consisted of. Central Lviv pushed everything it didn't like to Pidzamche: various ethnic groups that did not fit into the image of Polish Lviv, dirty nondescript production like slaughtering cattle, processing of hides or city sewage treatment plants. The poor found refuge here. It was even planned to officially “relocate” prostitution to Pidzamche at the beginning of the 20th century.

Batiar, a legendary local subculture of petty criminals and bullies is also associated with Pidzamche. "Pidzamkovi" Batiar was distinguished by a motley multi-ethnic culture, which was equally created by Jews, Ukrainians and Poles. The main thing is that a person had to have a good sense of humour and follow certain rules. This, in fact, made Batiar so special. This subculture of petty criminals that existed here until the end of World War II, and some of its representatives, who refused to leave the city after joining the USSR, could be found on the streets and in taverns back in the 70s of the 20th century.

Then – mainly in Soviet times already – the industrial zone continued to rapidly expand through Pidzamche: plants and factories surrounded residential quarters so tightly that sometimes it was necessary to pick up a thing that fell from the window, passing through the entrance of a nearby plant, because its territory was right under the window.

And all this powerful industrial infrastructure – with its noises, smells of burnt chocolate and “Galka” coffee, the stench from the soap factory – began to decline gradually during the days of Ukraine's independence. Pidzamche infrastructure, commercial activities and social life were also falling apart...

RIEL Real Estate Corporation began to “work with” Pidzamche in 2020 with the intention of creating a “new centre of the old city” on the site where life was slowly disappearing.

The area was dominated by low-rise old buildings, the ruins of former production shops, the walls of modern local industries, spontaneous trade, vagabonds and heritage sites that had to certainly be preserved. And all this existed in the absence of roads: they were simply destroyed by time.

Our main task – probably the most daring at the time – was not only revitalization of depressed Pidzamche, not only harmonious integration of the architectural heritage of the district in ultramodern technological design of Mistechko Pidzamche complex, but also the beginning of the project implementation in such conditions that even pulling up a concrete mixer was a real quest.

Meanwhile, we have planned to build almost a city of the future here – a large-scale, high-tech Mistechko Pidzamche residential complex, the territory of which would become “the new centre of the old city”. We have designed not only “picture perfect” houses according to the latest trends in housing construction – with landscaped lounges on the roof, state-of-the-art infrastructure (from charging stations for electric vehicles to now fashionable coworking spaces, work-out and retreat areas), with business opportunities. There will be everything you need for a full life for every family member – schools, kindergartens, shops, offices. We invest a lot of money to ensure that this infrastructure is of high quality and contemporary. We have planned to create a new centre for life, business and leisure here.

The city authorities has even planned a cable car to connect Pidzamche with Old Lviv. It will cost the investor, with whom we are currently negotiating, about ten million euros.

Several years ago, the city has already invested about 170 million hryvnia for the reconstruction of Promyslova Street. And now, about the same amount of money is required for the restoration of Bohdan Khmelnytskyi Street.

Millions of euros will be spent on the renovation of one of the main attractions of Pidzamche – the Jam Factory, the buildings of which were bought by an Austrian investor several years ago.

To realize our dream of Mistechko Pidzamche to become a residential, commercial, entertainment and cultural complex that will practically breathe new life into this place, making it a centre for attracting successful, energetic, purposeful, modern people, a place to live, bicycling or walking, work-out, recreation, it will take another five years and tens of millions of euros: we expect that our last builder will leave the territory of the new, bright, high-tech Mistechko Pidzamche in 2025. At that time, more than 100,000 square meters of apartments are expected to be built; 30,000 square meters will be for business – we expect that it will give a second wind in Pidzamche development; about 9 hectares of exploited adjacent territories – from bicycle and car parkings (more than eight thousand square meters are designed) to retreat zones; a number of art objects, including a partially interactive project, created in collaboration with a team of leading experts in history and technology, which we call Pidzamche showroom: this is the tool to make our visitors absorbed by the history of Pidzamche from the very entrance, until they immerse themselves in it enough to come out with “wow” impressions.

But the restoration of life in Pidzamche will not stop there: a new object is already being designed in our office, which will become the next stage in the gentrification of the site. It will also require huge investments and will have a similar concept: to breathe new life, getting rid of unnecessary things + to preserve what matters + to harmoniously integrate into modernity.

However, this phenomenon – a complex change in the urban environment – exists in Ukraine at the level of public initiatives rather than at the state level so far. Although it is often from the revitalized districts and residential areas that the gentrification of entire urban environments, their economic development, and hence their attractiveness both for permanent residence and for doing business or visiting with a tourist purpose begin. Whether unfortunately or fortunately, there is no shortage of abandoned territories and individual objects in Ukraine, which can become a successful “testing ground” for the application of such efforts of society and private companies.

At the same time, while in this chain of those who want to breathe new life into the abandoned cells of Ukrainian cities, there is an acute lack of the most important link – government officials: it is their support – both at the local and national levels – that could significantly boost the processes of gentrification in Ukraine.