ATLANTA UNDER CONTRACT
Atlanta Georgia was one of the most demanded investment cities in 2014 in the wake of the US crash, the low prices and strong rental market pushed demand to unprecedented levels which could not be sustained. Typically every tenanted property that came on the market was subject to a biding war, everybody wanted a slice of one of the best cities in the US
Since then the market has levelled out somewhat due to increased property prices and a poor supply of inventory but demand is still on the rise, the majority of investment properties being offered today are vacant in need of refurbishment and often over 30 minutes from the city.
Overall in the United States there is a shortage of homes available on the market. The lack of inventory is especially evident in the Downtown Atlanta area and North Atlanta suburbs where inventory shortages have resulted in price appreciation of 10% or more in certain areas. Over the last two years, during the summer months there was essentially the same number of homes on the market as the number of properties sold.
The National Affordable Housing Management Association—described as a “leading voice” in the fight for affordable housing in the U.S.—highlighted actions by Atlanta government leaders and developers in an analysis of rental conditions in cities across the land, noting that teachers, firefighters, police, retirees, and others are having difficulty affording to live in the cities they serve.
NAHMA summarised the local situation as follows “ The City of Atlanta is currently experiencing a surge in multifamily housing construction brought about by a strong regional economy and growing demand for urban living. However, most of the rental housing delivered over the course of the last several years is unattainable to entry-level employees and public servants working in the municipality proper”
Atlanta at the moment is a beehive of new development, it has recently experienced a influx of new residents and businesses due to the new construction. Downtown Atlanta is home to numerous attractions, sporting events, and Centennial Olympic Park.
Atlanta ranks third nationally in the number of Fortune 500 companies headquartered in one particular city (16 total). Some of the Fortune 500 companies headquartered in Atlanta include The Home Depot, UPS, Coca-Cola, and Delta Air Lines. Atlanta also headquarters ten Fortune 1000 companies, generating $345.6 billion of revenue. In addition, more than 75% of the Fortune 1000 companies have operations in Atlanta.
Atlanta is the Capitol of the South and has the fastest growing population in the US, the population of Atlanta is expected to increase by 43 percent from now to 2025 which will push demand even further for rented properties. Atlanta is a major transportation hub and is home to the busiest international airport in the world. Atlanta has a high number of colleges and universities, more than 30 institutions of higher learning are located in Atlanta. Atlanta receives 16.5 million visitors each year, there are 130 retail centres and 54 public parks, the city is home to the fourteenth largest mall in the USA.
And this isn’t even the half of it, Atlanta is becoming a Hollywood rival in film production; home to national teams in every major competitive sport; a mecca of world renowned universities; entertainment destination and cuisine hot spots, Atlanta is easily the number one choice for investors given real estate prices have not yet succumbed to the radical prices of New York City and Los Angeles.
So we can see clearly that Atlanta is an incredible investment but currently it is not ticking every box for the overseas investor. There is a huge demand for rented properties but this is not being backed up by a supply of turnkey properties, especially ones that are not subject to a bidding war.
In 2017 the metro Atlanta real estate market will continue to be a seller’s market as modest construction of new housing and the low turnover of existing housing stock will continue to keep inventories low and elevate prices of houses on the market. The Atlanta business chronicle recently ran an article titled – Affordable housing and the mayor’s race: ‘There is nothing more important” The article stipulated how important affordable housing was going to be for the leading candidates for Mayor.
Global Investments Incorporated have been waiting for the right opportunity to enter the Atlanta housing market, we have been looking at this market for over three years now but could not offer the right product to our investor clients, we did not want our clients to be part of a bidding war or purchase vacant properties that need work.
We are proud to say that our tireless hard work has paid off, we have just signed up an exclusive agreement of 49 townhouse just 15 minutes from Downtown Atlanta, all of these homes are refurbished, tenanted and come within the confines of a secure well maintained development.
Due to the huge demand in Atlanta this development will be offered on a phase basis of 10 properties per time, the development is ideally situated less than 3 miles from I-75 and 10 minutes from Jackson-Hartsfield International Airport.
CEO Mike Moodie was quoted saying” This is one of the best developments to come on line in the US in recent years and we expect to be sold out in a number of weeks, if you have been looking for a good rental property in the Atlanta housing market this is the one you have been waiting on”