How to Profit from Real Estate in North Dallas and Beyond

All eyes are on North Dallas real estate and beyond right now. This region, which can also be considered North Texas, is experiencing a surge in growth that makes it worthwhile to consider for your next real estate investment. There’s a confluence of factors that’s presenting opportunities too hard to ignore.

North Dallas isn’t just growing; it’s thriving. Major developments, tech investments, and infrastructure improvements fuel its current epic growth. It’s a place where a $4 billion development project isn’t just a pipe dream; it’s a reality. It’s a location where tech giants like Texas Instruments and GlobiTech are investing in semiconductor factories, attracting high-income employees and increasing housing demand. And it’s an area where infrastructure projects like the Dallas North Tollway extension are signaling future growth.

But what does this mean for real estate investors? It means opportunity. It means potential. And, most importantly, it means profit. With the right strategies and a keen eye for trends, investors can capitalize on the rising growth of North Dallas and its surrounding cities. They can turn a profit from large-scale developments, tech investments, and new home construction. They can invest in small towns near growing cities and commercial properties in areas with residential developments.

In this article we’ll delve deeper into the potentially lucrative real estate investment opportunities in North Dallas and surrounding areas. We’ll explore the major developments fueling growth, the tech investments attracting high-income employees, the infrastructure improvements signaling future growth, and the strategies that real estate investors can employ to capitalize on these trends. So, whether you’re a seasoned investor or a newbie looking to break into the market, read on. The future of real estate investment is here, and it’s in the North Dallas region.

Here’s 3 major reasons fueling growth.

1. Major Builder Developments in North Texas

Where companies and builders go, money flows. Craig’s International and Centurion are ahead of the pack.

Craig International’s $4 Billion Development on the Texas Side of Lake Texoma

Imagine a development project so massive, it’s set to transform the landscape of North Dallas. That’s exactly what Craig International is doing with its $4 billion development on the Texas side of Lake Texoma. This isn’t just a development; it’s a game-changer.

Preston Harbor will invigorate Lake Texoma’s marina industry, said Miles Prestemon, Craig International’s chief operating officer.

“Right now Lake Texoma has a very tired product of marinas,” Prestemon told the outlet. “This new marina will be state of the art.”

Spanning a whopping 3,100 acres, this project will include over 7,000 residential units, a resort hotel, restaurant, and marina. It’s set set to bring a wave of economic growth and prosperity to the region. This is a golden opportunity to investors.

Why? Because large-scale developments like this one often lead to increased property values and rental demand. They attract businesses, jobs, and people, creating a thriving community where real estate investments can flourish. And with a project of this magnitude, the potential for profit and appreciation can be immense.

But it’s not just about the potential for profit. It’s also about the impact this development will have on the community. Craig International’s move creates jobs, boosts the local economy, and provides housing for thousands of people. It’s a win-win situation for investors and the community alike.

Centurion American Development’s 1,500-Acre Residential Development

Centurion American Development also has big plans for North Dallas. The company is planning a 1,500-acre residential development near the Texas Instruments and GlobiTech projects. This development further solidifies North Dallas and surrounding regions as a base for growth and strong home demand.

As with Craig International, Centurion American Development is set to bring a wave of new residents to the area. Centurion American Development’s located in Cottonwood. It’s situated just off U.S. Highway 75 in Grayson County. Cottonwood is roughly 55 miles north of Dallas and south of another growing city, Sherman. New developments bring new infrastructure seamlessly connecting new residents and businesses to neighboring cities like Dallas and other major transportation arteries. Furthermore, it fosters economic vitality by attracting and supporting the establishment of diverse commercial establishments, creating a vibrant ecosystem that fuels prosperity and enhances the overall quality of life for all homeowners.

Significant Activity in Gunter

Gunter, a small town just north of Celina, is experiencing a surge in residential land sales. This increase signals potential growth and presents a unique opportunity for real estate investors.

Two large land buys took place last fall, indicating that developers and investors are taking notice of Gunter.

Centurion American Development Group strategically acquired Taylor Ranch, an expansive 500-acre property located west of Preston Road. Positioned in close proximity to the future extension route of the Dallas North Tollway, this prime location presents a remarkable opportunity.

Centurion American plans to create a thoughtfully designed master-planned housing community on the site. This aligns with the increasing demand for residential land in Gunter, as builders and developers respond to the growing market. Notably, the neighboring town of Celina has experienced a surge in housing construction, further fueling interest in the region.

“The project will be developed around a 40-acre private lake and include extensive hike and bike trails, open spaces and other amenities, all planned within the development,” said real estate broker Rex Glendenning, who handled the sale. “The area is seeing a surge in growth due to both its proximity to North Dallas as well as its easy access to the new planned GlobiTech and (Texas Instruments) chip plants in Sherman.”

Investing in small towns near growing cities can be a smart move. As the city expands, these towns often experience growth as well. Early investors can benefit from this growth by purchasing land or properties before prices rise.

New Home Construction in Sherman and Denison

Sherman and Denison, two cities located north of Dallas in Texas, beckon informed real estate investors with lucrative opportunities. Sherman witnesses a current surge in real estate developments as 34 planned projects take shape. These projects aim to meet the growing demand in the area, featuring over 8,000 single-family lots and 10,000 multi-family units. Investors can seize the chance to capitalize on this significant scope for investment and maximize their returns as residential developers flock to the region.

Moreover, Sherman’s economic growth thrives on major industrial developments. The recent announcement of a semiconductor facility by GlobiTech, bolstered by substantial financial incentives, may generate over a thousand new jobs and attracts billions of dollars in investment. Additionally, the ongoing development of Texas Instruments’ semiconductor plant promises to yield 3,000 new jobs by 2025, contributing to a robust job market and fostering economic prosperity in the region.

While some argue that Sherman’s real estate market may face overvaluation, informed investors discern the city’s growth potential and leverage favorable market conditions. Despite warnings of potential home price declines, strong housing demand and continuous industrial developments present strategic investment opportunities. By actively investing in this dynamic and evolving real estate market, investors position themselves for long-term profitability.

“The northward expansion that we’ve been talking about for thirty years, well, it’s here,” said Sherman City Council Member Josh Stevenson. “You’re going to turn around, and it is going to seem like tomorrow, and there’s just going to be people everywhere.”

While “only about 30 percent of the developments are cleared for the first phases of construction, ” the prospect of significant demand due to Texas Instruments and GlobiTech in the area cannot be ignored.

2. Tech Investments Attract Strong Worker Base

Corporate investments, especially from semiconductors, spurs an entirely new economy to flourish in North Texas. Take these two investments for example.

Texas Instruments and GlobiTech’s Semiconductor Factories in Sherman

As mentioned earlier, but it bears repeating, Sherman is becoming a tech hub, thanks to Texas Instruments and GlobiTech. These tech giants are investing in semiconductor factories in the area, bringing high-income jobs and boosting the local economy.

Texas Instruments’ colossal facility in Sherman, Texas, creates enticing prospects for real estate investors. This groundbreaking project, estimated at $30 billion, represents the largest capital investment ever witnessed in Texas from a single company. As their mayor David Plyler says, “TI has solidified Sherman’s status as the high-tech hub of North Texas.”

Spanning an area equivalent to 24 football fields, the campus will house four potential factories, offering remarkable growth potential and capturing the attention of real estate investors. The first factory is slated to commence production of tens of thousands chips per day by 2025

Similarly, GlobiTech, a subsidiary of Taiwan-based GlobalWafers Co., chose Sherman, Texas, as the location for its new $5 billion plant, which will focus on producing silicon wafers. This expansion project is expected to create 1,500 new jobs and provide a significant economic boost to the Texoma-area. Texas will chip in (no pun intended) a $15 million cash grant from its enterprise fund, along with at least $34 million in local tax incentives to support the development. The scope of the project plus government incentives may create the flywheel for long-term real estate investment success in the North Dallas and regional area.

Tech Companies Can Attract High-Earning Employees

Tech companies have a knack for attracting high-income employees. With their competitive salaries and enticing benefits, they draw in a workforce that’s not only highly skilled, but also well-paid. And this has significant implications for the real estate market.

High-income employees tend to have more purchasing power. This means they can afford to rent or buy in desirable areas, driving up property values and rental rates. For real estate investors, this can lead to higher returns on investment.

Moreover, the presence of high-income employees can lead to economic growth. They can stimulate local businesses, contribute to the tax base, and even attract other companies to the area. This can lead to further growth and development, creating even more opportunities for real estate investors.

The Correlation Between Tech Investments and Housing Demand

Consider how these investments from Texas Instruments and GlobiTech will drive growth and home values.

Manufacturers drive real estate prices.

Manufacturers have become a driving force behind the surge in real estate prices, reshaping communities and attracting new opportunities. These industrial giants, with their massive investments and expanding operations, create a ripple effect that reverberates through local economies. As John Morris, executive managing director at CBRE, states, “Manufacturing investments…create a cascading impact on local economies and the logistics real estate markets in the area.”

Major semiconductor manufacturers bring jobs and spinoff activities.

Take the example of major semiconductor manufacturers who are building enormous plants across the United States. Their investments in multi-billion dollar facilities have not only brought thousands of new jobs, but have also sparked spinoff activities. According to Commercial Property Executive, suppliers for these chipmakers are setting up shop near the plants, which stimulates additional residential and commercial development. As Morris highlights, “These markets can certainly expect an increase in demand for logistics space to support tier 1 and tier 2 suppliers that will need to locate supply materials close to manufacturing plants.”

Major semiconductor manufacturers bring jobs and spinoff activities.

Take a look at some major semiconductor manufacturers, including Intel, Samsung, and Taiwan Semiconductor Manufacturing Company (TSMC), who are constructing massive plants across the United States with substantial investments. For instance, Intel’s initial $20 billion investment in a multi-factory semiconductor site near Columbus, Ohio, has not only generated thousands of new jobs, but also ignited spinoff activities.

Similarly, Samsung’s $17 billion investment in a 1,200-acre site in the Austin, Texas, suburb of Taylor is expected to create about 2,000 new jobs in a 6-million-square-foot semiconductor facility. Meanwhile, Taiwan Semiconductor Manufacturing Company is building a $12 billion, 3.8 million square foot manufacturing campus in Phoenix, Arizona.

These investments by major chipmakers are not only driving job creation, but also spurring additional residential and commercial development, as highlighted by John Morris:

These markets can certainly expect an increase in demand for logistics space to support tier 1 and tier 2 suppliers that will need to locate supply materials close to manufacturing plants.

The transformative nature of these manufacturing investments is undeniable. They create a long-lasting impact on the local real estate market, attracting investors and pushing prices upward. This manufacturing sea change presents an opportune moment for real estate investors to explore their own prospects. By partnering with local brokers and developers, seeking crowdfunding opportunities, or considering investments in real estate investment trusts (REITs), investors can position themselves to leverage the tremendous growth potential driven by these industrial powerhouses. As the market expands beyond the plant sites and into surrounding suburbs and rural areas, the opportunities for real estate investors keep growing.

3. Infrastructure Improvements Signal Future Growth

North Texas is laying the groundwork for much more growth to come. This signals stability and ability to capture the increased demands from residents.

The Dallas North Tollway Extension

Infrastructure improvements often signal future growth, and the Dallas North Tollway extension is no exception. This major infrastructure project is set to improve connectivity and accessibility in the region, making it even more attractive to businesses and residents alike.

Its expansion in Frisco actively benefits the area’s explosive growth and significantly influences real estate home values. According to NTTA spokesman Michael Rey, the project aims to enhance commutes, improve access to developments near the tollway, and accommodate both current and anticipated growth. Rey emphasizes:

Expansion accommodates the growth we’ve witnessed and anticipates future growth from cities north of this segment.

This infrastructure investment actively supports real estate investors by facilitating growth, reducing congestion, and positively impacting property values.

The Dallas North Tollway plays a vital role in facilitating growth and propelling real estate home values in Collin and Denton counties, which experienced substantial population growth. Census data indicates Collin County added over 36,000 residents and Denton County added over 27,000 residents a couple years ago. This leads to much more congestion. The expansion directly addresses the resulting congestion. By improving access and reducing traffic bottlenecks, the expanded tollway enhances the desirability and convenience of surrounding real estate, leading to increased home values.A

Also, the tollway extension will connect downtown Dallas to the growing cities in the north, including Frisco, Plano, and Prosper. For real estate investors, infrastructure improvements like the Dallas North Tollway extension can be a sign of future growth. The infrastructure is in place to support the residential and commercial establishments that will come. A more active tax base and local economy drives up property values and rents.

The Role of Infrastructure in Fueling Growth

Infrastructure plays a crucial role in fueling growth. It improves connectivity, attracts businesses, and enhances the quality of life for residents. And all of these factors can lead to increased demand for real estate.

“Infrastructure is a key driver of economic growth,” according to the World Bank. It facilitates trade, promotes innovation, and creates jobs. And these economic benefits can translate into real estate profits.

Improved infrastructure can lead to increased property values and rental rates. It can make an area more desirable to live and work in, attracting more residents and businesses. And this increased demand can be a boon for real estate investors.

So, when considering where to invest in real estate, don’t overlook the role of infrastructure. It’s a key factor in fueling growth, and it can be a sign of lucrative investment opportunities.

The Potential of Infrastructure Projects as Indicators of Future Growth

Infrastructure projects aren’t just about improving connectivity and accessibility. They’re also potential indicators of future growth. And for real estate investors, they’re signals worth paying attention to. Major infrastructure projects often lead to increased economic activity. They attract businesses, create jobs, and stimulate local economies. And this can lead to increased demand for real estate. According to the American Society of Civil Engineers, every dollar spent on infrastructure generates $3 in economic activity. This multiplier effect can lead to increased property values and rental rates, providing a lucrative opportunity for real estate investors.

4. Strategies for Real Estate Investors in North Dallas and Surrounding Areas

As all the prior reasons indicate, there’s a lot to be excited about in North Dallas and its adjacent areas.

To reiterate, here’s the major reasons to consider real estate investments in the area.

Investing in Areas with Large-Scale Developments

Large-scale developments can transform neighborhoods and cities, making them attractive to real estate investors. These developments often lead to increased property values and rental demand, providing a lucrative opportunity for investors.

Consider the example of Hudson Yards in New York City. This large-scale development transformed a former industrial area into a thriving neighborhood with high-end condos, retail spaces, and office buildings. Investors who bought properties in the area early on have seen significant returns.

Investing Near Tech Companies

Tech companies can be a boon for real estate investors. Companies such as Texas Instruments come in, establish a base and from there, an industry grows. The industry attracts and supports often higher income employees interested in establishing their own roots in the area. This leads to add-on desirable amenities such as better schools, more commercial options such as restaurants and nightlife and other adjacent industries.

Investing in Commercial Properties in Areas with Residential Developments

Keep an eye on where commercial builders go. Redevelopment can increase values for homes in the area. Take the Seaport District in Boston. MIT studied home prices and found homes in the redeveloped Seaport area “earned an additional 6.21% in annual price growth” over a 20 year period.

Investing in Small Towns Near Growing Cities

Small towns near growing cities can offer unique opportunities for real estate investors. As the city expands, these towns often experience growth as well. Early investors can benefit from this growth by purchasing land or properties before prices rise.

Take the example of Round Rock, Texas. This small town near Austin has grown 354 percent since 1998. The spillover effect from Austin no doubt has contributed to its rise. In fact, its one of the fastest rising home values in the country.

Investing in Areas with New Home Construction

Areas with new home construction can be a gold mine for real estate investors. Who doesn’t like new things? New homes mean new buyers. Also, it can mean homeowners trading up. Homeowners moving in. Along with new homes comes new taxes and support for neighborhood and regional amenities and infrastructure.

Are You Convinced Yet about North Texas?

The rising growth of North Dallas and surrounding cities presents a wealth of opportunities for real estate investors. From large-scale developments and tech investments to infrastructure improvements, these factors are fueling growth and creating a favorable environment for real estate investment.

Investors can leverage these trends by investing in areas with large-scale developments, near tech companies, in commercial properties in residential areas, in small towns near growing cities, or in areas with new home construction. That is your market research. Using these theses to establish an investment framework that guides you to future investments in North Texas and its surrounding areas.

Nothing is given, so it’s up to you to turn over every stone. Even though lots of factors point to consistent future growth in the area, nothing is given.

This area may even turn into a new Silicon Valley. Or a mini-Silicon Valley. That can light a fire in home prices for anyone who invests in North Dallas and its surrounding areas.