For most of us Detroit is not much more than a collection of news stories related to crime and low economic output. It’s a sad image but a vivid one that is rooted deep in our memories ever since the downfall of Motor City.
But things are changing and in the near future a new image of Detroit will emerge, one of rapidly growing markets and of a high-flying economy. This also means that there are good reasons for investing in real estate.
- The startups are coming. As was foretold by Venture Beat News in recent weeks, major venture capital firms are investing heavily in newly created startups that see their future in Detroit. It is only a matter of time that some of the currently rough neighborhoods will turn into fashionable young professionals’ quarters.
- Buy cheap and keep it. Buy and hold strategy could work in Detroit like no other city before. Whilst the city is crumbling at the moment, give it five years and you will see impressive changes. The city parks will be cleaned up, the fountains will be turned on, and major corporations will put their names on the city’s skyscrapers. Just wait for it.
- Emerging market on your doorstep. Let’s call it what it is: Detroit is an emerging market. It is emerging in the sense that it has started to attract new investors with fresh ideas and a desire to settle new industries. Stakeholders have already invested over $1 billion to renovate sights like the Greektown Casino, downtown hotels, and restaurants. $650 million has been spent on a new sports complex and into rebuilding the arena district.
It all takes time and you will not cash in tomorrow, but Detroit will be a big hit for those willing to invest in real estate today.