No because because the city is run by a bunch of racial nationalists who don't believe in the concept of private property. They will simply allow criminals to loot the place.
How about this:
Take one of those expropriated properties and build a nice new metro police station for the area on top of it. Then use your new police station to make the area safe enough for people to want to invest their money there. The amount of social good a thriving industrial district can do for the area is worth far more than a paltry 3000 houses.
Land was promised. Do not come here with smart ideas to build an economy.