As part of the Global Real Estate Panel, Silvina Capellino explained Detroit´s current opportunities to the audience.
Her presentation included a thorough analysis of the market, the opportunities offered by it and how INMSA operates to achieve projected returns of more than 15% annually at this moment of great opportunity in the market.
After almost disappearing off the face of the earth, it has become the star of real estate. Detroit is the city that went from being bankrupt to a process of recovery offering important opportunities for real estate investors.
The market cycles control the investments in the real estate sector. And Detroit is an example of that.
After emerging from bankruptcy in 2014, as indicated by Silvina Capellino in her presentation, the real estate market rose to its feet and started a recovery process.
Today, it is attracting investments involving more than US$4 billion to restructure the automotive industry and develop the technological sector. Unemployment rate has been reduced to less than 10 percent thanks to the arrival of new companies to the market. This new revival has been driven by the development of more than one hundred projects in downtown and midtown areas. There is a wide range of residential and commercial assets to be restructured, which can be acquired through banks and auctions with strong discounts, under the market value.
Real property has started to recover at 10 percent annually and in several zones there is still a long way ahead after a decline of more than 70% of their value. Silvina Capellino expressed that there are residential assets of good quality with a value quite under the replacement cost, from US$350/square meter. But, it is important to be careful as there are also units that are being offered three times their value. In addition, there are offers of houses bought by agents at US$20,000 and then sold to foreigners for the still attractive amount of US$60,000 but they are located in areas with risk of vandalism. For that reason, it is essential to know how to buy and with whom. With INMSA you can take advantage of the opportunities through a solid management process enabling Detroit to become the new destination of real estate investments.