THE CITY OF REBIRTH AND OPPORTUNITIES
The town of DETROIT was declared bankrupt in July 2013. Since that date, Motor City has continued to rebuild its health, to repopulate itself, to create jobs to the point that the biggest brands have moved to DETROIT. A dynamic is created, hotels, restaurants, PUBs, nightclubs are appearing in the center of DETROIT. Whole “Buldings” , formerly abandoned, have been transformed into commercial offices or luxury loft intended to accommodate the new clientele of DETROIT DOWTOWN! The biggest automakers keep filling their order books and investing millions of dollars in the construction of a factory in DETROIT and its suburbs. The government of the United States exempts Start-ups wanting to afford the dream from charges American, as a result, hundreds of companies are born thanks to DETROIT and offer jobs to all Americans!
DETROIT’s new mayor, Mike Duggan, has « new rules » in place, making DETROIT’s real estate market one of the toughest in the US. Monumental constructions and works are being created and renovated, such as the legendary DETROIT station which has just been bought by the giant FORD ( read HERE ). Investors from all over the world are invading DETROIT because despite all that, DETROIT remains the city of the USA where real estate remains accessible … but it will not last! The price of real estate increases on average from 20% to 30% per year … it is the pure law of « supply and demand », do not drag the houses that are sold today 50.000€ , were selling 30.000€ yesterday … Detroit comes back to life and investment in real estate promises good returns. For any purchase and possession, the potential for return is greater than any other city in the United States. After facing bankruptcy proceedings, the city took serious initiatives to encourage investors to return.
The promoters, investors and the Detroit administration are working together to help the city regain its original splendor. After a year of significant improvements, the city is on the move for a remarkable economic return. This is excellent news that will certainly encourage investors to buy a property.
The fall in the Detroit real estate market provides an opportunity to put the “buy low and sell high” axiom into practice. Real estate investors from other states and even other countries are present in the real estate industry in the region. It is estimated that up to 80% of the homes sold there are bought by investors. The low prices they pay for rather large homes partly explain these favorable circumstances. They are getting their money’s worth and, as the demand for housing has increased due to the city’s development, property prices are on the rise and investors are making huge profits by entering the market early.
Nationally, the average gross flip margin in the first quarter was 72 450 dollars, the highest value since 2011. The daily Detroit Free Press notes that the city is one of the first metropolitan areas practicing the real estate flip.
This year, Detroit moved up to number one on the exclusive Marcus & Millichap Return Index with 10 markets, followed by Cleveland, Pittsburgh, Indianapolis and Cincinnati. The city is in a leading position due to the higher returns generated by properties and perceived by investors, further proof of the city’s burgeoning economic strength.
Signs of a developing strait
Detroit Real Estate The regional authority of the Detroit Regional Convention Facility Authority was looking for 299 million in investment to renovate the building, and in two hours, 922 million was received.
Detroit Real Estate Dan Gilbert, « the savior of Detroit »
Detroit Real Estate The recovery of the US auto industry (manufacturers, distributors and suppliers) has resulted in the creation of more 400 000 jobs since it had bottomed out in June 2009, and 2014’s auto sales were 16,5 million – highest amount since 2006.
Detroit Real Estate Investors spent more than $ 1 billion to renovate tourist attractions like the Greektown Casino, and downtown restaurants and hotels. 650 Million additional dollars were invested in building a sports complex and renovating the neighborhood. The idea is to create a city that combines business (conference centers) and leisure (services adapted to welcoming families on vacation).
Detroit Real Estate Foreign investors view Detroit as a low-cost investment opportunity with higher returns, similar to developing countries but with the benefit of a stable US dollar.
Detroit Real Estate The city is buzzing with numerous and considerable investments in new programs: opening of restaurants and shops, restoration by the river, road repairs, etc. The city improvement plan is a thing of the past and the future is on!
Detroit Real Estate The M-1 rail line, running from downtown to Midtown along Woodward Avenue, has already been a boon to the real estate market as purchases and developments have sprung up in this area.