The town of DETROIT was declared bankrupt in July 2013. Since then, Motor City has been restoring its health, repopulating itself, creating jobs to the point where the biggest brands come to settle in DETROIT. A dynamic is created, hotels, restaurants, pubs, nightclubs make their appearances in the center of DETROIT. Whole Buldings , once abandoned, have turned into commercial offices or luxury lofts to house the new clientele of DETROIT DOWTOWN! The biggest automakers are constantly filling their order books and investing millions of dollars in factory construction in DETROIT and its suburbs. The US government exonerates start-ups willing to afford the dream 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 put in place "new rules", making DETROIT's real estate market one of the strictest in the US. Constructions and monumental works are being created and renovated like the legendary DETROIT station which has just been bought by the giant FORD ( read HERE ). Investors from around the world are invading DETROIT because in spite of 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 "the supply and the demand", it is not necessary to drag the houses which are sold today50.000€ , 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 of the Detroit real estate market is an opportunity to put into practice the axiom "buy low and sell high" (flip). Real estate investors from other states and even other countries are present in the real estate sector in the region. It is estimated that up to 80% of homes sold there are purchased by investors. The low prices they pay for rather large houses partly explain these favorable circumstances. They are getting value for money and, since the demand for housing has increased due to the development of the city, property prices are rising 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 moves to the top spot on the Marcus & Millichap Exclusive Yield Index with 10 Markets, followed by Cleveland, Pittsburgh, Indianapolis and Cincinnati. The city is in a leading position because of the higher returns generated by the properties and perceived by investors, further evidence of the emerging economic strength of the city.
Signs of a developing strait
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.
Dan Gilbert, "the savior of Detroit"
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.
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).
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.
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!
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.