Entrepreneurship
Theme: Innovation
Cross-cutting themes covered: Regenerating deprived areas
Name of project: Karlín
City: Prague
What is it? This project involved the regeneration of an ex-industrial neighbourhood in Prague. Following an intensive programme of redevelopment, Karlín has become attractive to inward investors and innovative businesses.
Who is it? The project involved strong co-operation between the private sector developer, Karlín Real Estate Group, and the municipal authority, Prague 8.
Where is it? Karlín is an ex-industrial neighbourhood in Prague. During the second half of the 20th century, the neighbourhood underwent a rapid process of de-industrialisation. Since the early 1990s, Karlín has been one of the most deprived areas of Prague, with a negative public image.
Who funds it? Estimates of total cost of the reconstruction range between €140 million and €170 million. Funders were as follows:
How does it work? Strong private sector developer: In 1992, the Karlín Real Estate Group (KREG) came into the area, initiating a redevelopment process. Following severe flooding in August 2002, an administrative decision was taken to totally reconstruct the Karlín area. Since then, many high-quality office spaces and residential units have been built to provide premises for the businesses which have moved into the area.
Close partnership working: A partnership between local developers was established from the beginning of the regeneration project. This facilitated negotiations with the local authority, as well as allowing for the creation of a unified vision for the area. Regular communication between lead developer the Karlín Real Estate Group and the municipality meant that the redevelopment was shaped according to both public and private sector needs and interests.
Anything else? Maintaining high quality: The participation of respected, well-known architects ensured the high quality of the development. Many of the buildings’ original facades were kept intact, updated by modern architectural flourishes.
What are the results? Showing that Karlín has succeeded in moving on from its industrial past, many innovative service sector businesses have been attracted to the area, helping to turn around the reputation of the locality.
The developers are also trying to maximise the use of buildings that will take a longer time to regenerate, renting them out as film studios, parking lots and cheap accommodation for small businesses.
Is it successful? Since the regeneration of Karlín, unemployment rates have fallen as the local population has found jobs in the new businesses opening up in the district. The image of the area has greatly improved.
Is the model transferable? One transferable element of the Karlín regeneration model is the way that the development has built on the area’s industrial heritage which, in this case, has succeeded in creating a business location attractive to inward investors.
Building on local competitive advantages? The developers have built on several competitive advantages which may not be available elsewhere. For example, the lead developer has succeeded in capitalising on the industrial heritage of Karlín, creating an appealing locality which is attractive to local businesses. The area also has good access to the city centre. The opportunity to reconstruct the area totally after the flood in 2002 was also a considerable advantage for the developers, ensuring that it has been fully adapted to its new purpose.
What are the barriers to transferability? In Prague, the municipality has been enthusiastic about the approach of the developer, providing a good starting point for dialogue. Barriers to transferability could be unwillingness, on the part of the municipality or the developers, to co-operate with each other.
