Culture, History, and Business
Lodz was first mentioned in 1332 and gained city rights in 1423. However, despite its change in status, it remained a small village that consisted mostly of grain farmers until the 18th century. In 1793, it became a part of Prussia as a result of the Second Partition of Poland, while in 1815 the Congress of Vienna transferred it to the Congress Kingdom of Poland, which was a client state of Russia. During the 19th century, it flourished as an industrial center, largely thanks to its access to the vast Russian market. Textiles—cotton in particular—became important parts of the economy. During World War II, the city became infamous for the Jewish Ghetto established by the invading Nazis and by the end of the war Lodz’s former Jewish community, which had numbered over 200,000, was almost completely wiped out in the Holocaust.
The city struggled in the 1990’s as it made the tough transition from communism to capitalism. Many factories closed, workers migrated to Western Europe and unemployment soared. Fortunately, over the past two decades the city has seen a dramatic turnaround. Especially thanks to Poland’s entry in the European Union, businesses—particularly in the tech sector—are coming back to Lodz, attracted by the cheap labor, affordable property, and revitalized city core.
Lodz is a city on the rise and, as such, has a lot of potential for real estate investors. While it does not yet have the same name recognition as Warsaw or Krakow, that is changing. Its historic downtown and refurbished industrial architecture—along with its wealth of cultural attractions—are primed to become major tourist attractions. As a result, short-term rental properties have plenty of potential to grow in the city.
Furthermore, Lodz is home to six state universities and is considered one of the academic hubs of Poland. There is a huge student population here, which for real estate investors means a stable market for reliable and lucrative medium-term rentals.