Why We’re Watching Chinese Investment in Detroit
Chinese investors’ faith in Detroit will bring lots of opportunities for American construction companies.
For many Americans, it’s hard to imagine Detroit as an attractive place to invest. We’ve seen too many melancholy images of buildings and even entire neighborhoods in this once thriving industrial center slowly collapsing back into nature as locals flee in search of better economic opportunities.
Yet for investors from China, Detroit presents a golden opportunity: the chance to own a piece of the American dream at rock-bottom bargain prices. As one Chinese ad for Detroit real estate put it: “700,000 people, quiet, clean air, no pollution, democracy — what are you waiting for?”
Since Detroit filed for bankruptcy in July of 2013, the Motor City has become the 4th most popular American investment destination for Chinese home buyers. Large investment companies have also been buying real estate in Detroit, snapping up factories, iconic downtown towers, and other commercial properties.
These investors aren’t looking for luxury properties. Instead, they’re focusing on the fixer-uppers. There are popular Chinese real estate websites focusing on abandoned Detroit homes priced at $10,000 or less. While most Americans would run screaming from these kinds of properties, Chinese investors have the capital and the faith in the city required to turn them around.
State and city officials are actively courting Chinese investment in Detroit, making it a cornerstone of their recovery plan for the city. Governor Rick Snyder is lobbying for 50,000 special federal immigration visas to help more Chinese investors come to Detroit in person.
As Chinese efforts to rehabilitate their newly purchased Detroit properties pick up steam, there are going to be opportunities for American businesses. Will your construction firm be ready?
Adopting ECL’s Construction Management Information System (CMIS) will help prepare your company to take on new opportunities in Detroit and across the country. First of all, our construction management software can help improve the bidding process, enabling you to be more accurate in your cost estimates and respond faster to changes requested in negotiations. When you win the job, our CMIS helps keep everything organized, tracking over 1,000 data points relevant to the project so you always know exactly how you stand. Finally, our software can handle all the financial details involved in paying employees, contractors, and subcontractors, and in taking and repaying funds from investors.
To learn more about how our software can meet the unique needs of your business, please contact ECL Software today to request a free online demo.