September 17, 2021
Today, you can hardly surprise anyone with such terms as gentrification and revitalization. Reconstruction and renovation of unattractive districts has become best practice of progressive countries. Ukraine is not an exception.
There is relatively new interest in depressed districts, abandoned industrial zones and wastelands revitalization in Ukraine. If the European and American neighbourhoods are famous for their comprehensive approach to reconstruction and renovation, this process remains occasional here. However, there are enthusiasts who see this trend as a great advantage to increase the attraction of districts and entire cities.
Together with RIEL Real Estate Corporation, which was one of the first to give impetus to the entire renewal of Lviv's Pidzamche district, let us find out what gentrification is and whether it exists in Ukraine.
What is gentrification: case study of European experience
Gentrification or revitalization is a process of renovation and reconstruction of buildings in unattractive city areas, resulting in changes in demographics, increasing the average income and strengthening the culture of the district.
People who travel a lot have certainly encountered European renewed areas. Marais district in Paris, for instance, now the centre of bohemian life, used to be in complete decline in the post-war period. The situation is similar with the world-famous Notting Hill in London. The poorest migrants who settled here after World War II turned the area into an arena for interethnic conflicts. To completely change the image of Notting Hill, the authorities had to demolish the old shacks and build a number of new buildings according to a unified architectural plan.
Is there gentrification in Ukraine?
According to Rostislav Melnyk, CEO of RIEL Real Estate Corporation, there are no examples of large-scale gentrification in Ukraine yet. However, this does not mean that we do not need such projects. On the contrary, developers understand how useful it is for the entire city to revitalize depressed districts. This means, in particular, the improvement of the housing stock, the “flow” to those areas of a solvent residents and entrepreneurs cluster, the outflow of those on the fringes of society, the brisk growth of local businesses, infrastructure and culture.
The example of RIEL Real Estate Corporation restoring Pidzamche is a necessary initiative that has demonstrated that the revitalization of abandoned Ukrainian districts is necessary and desirable, and most importantly, possible.
Ukrainian-style gentrification: the second life of Pidzamche district
Pidzamche district history
Pidzamche is Lviv part unattended by tourists, which is partly explained by the history of the district. Previously, there was a centre of workshops, enterprises, factories and mills. Central Lviv pushed everything it didn't like to Pidzamche: various ethnic groups, dirty productions, and city sewage treatment plants. 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 that existed here until the end of World War II, is also associated with Pidzamche.
In the post-war period, an industrial zone, which began to gradually decline during Ukraine's independence grew at Pidzamche. Its infrastructure, commercial activity and social life have also declined…
Moonshot project of the depressed area restoration
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 company saw a huge area with neither roads nor proper infrastructure. The area was dominated by low-rise old buildings, the ruins of former production shops, the walls of modern local industries. There were heritage sites here and there that had to be preserved.
The main task of the developer was not only gentrification with 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 the complete absence of roads, when sometimes even pulling up a concrete mixer was a real quest.
The corporation has not only designed the buildings according to the latest housing trends – with green roof lounges, state-of-the-art infrastructure (from electric cars charging stations to co-working, sports and retreat zones), but also took care of business opportunities and took into account all aspects of life of each family member – there are schools, kindergartens, shops, and offices nearby.
We invest a lot of money to make this infrastructure high quality and modern. We planned to create a new centre for life, business and leisure here, the developer says.
How much time and money is required for global revitalization
According to Rostyslav Melnyk, a few years ago the city invested about UAH 170,000,000 into the reconstruction of Promyslova Street. Now about the same amount is spent on the reconstruction of Bohdan Khmelnytskyi Street. Millions of euros will be spent on the renovation of one of Pidzamche’s main attractions, the Jam Factory. The city even plans a cable way that will connect the district with Old Lviv. It will cost the investor, with whom negotiations are underway, about ten million euros.
RIEL Real Estate Corporation plans that it will take another 5 years and tens of millions of euros to build Mistechko Pidzamche multifunctional complex, which will breathe new life into this place. By 2025, more than 100,000 square meters of apartments are expected to be built; 30,000 square meters will be for business; about 9 hectares of exploited adjacent territories – from bicycle and car parks to retreat zones; a number of art objects, including the interactive project Pidzamche showroom which will immerse the guests of the district in its history.
