October 3, 2016 / Market Insights

The Year of the "Comeback" Markets

We explore the factors behind the resurgence of several real estate markets in 2015

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Last year ushered in a new era for several luxury real estate markets hard hit by the global recession. Unlike their higher profile “success story” counterparts in prior years, these cities and resort areas were slow to recover but today are seeing dramatic turnaround. These once-stagnant luxury residential markets have begun to bloom as a result of changes in variables that dictate the health and pricing of each prime property market.

From tech-industry growth to urban regeneration, several similar market drivers have spurred the resurgence behind these extraordinarily diverse “comeback” property markets. These factors fall under three umbrella categories: game-changing industries (tech, film and television, and automotive); new affluent buyers (“millenipreneurs” and lifestyle migrators); and overseas investment influences. As part of our Luxury Defined 2016  report on the global prime property market, we explore the parallels between these “comeback” luxury real estate markets and examine why they are enjoying a welcome upward bounce. 

Meet the Game Changers Behind the “Comeback” Luxury Property Markets

Many luxury real estate markets hit hard by the global recession have entered a new era of growth. Led by urban regeneration and an increasing share of millennial residents, alongside new and resurgent industries, these property markets are enjoying a surprising and welcome upward bounce.

Source: Luxury Defined 2016 by Christie's International Real EstateSource: Luxury Defined 2016 by Christie's International Real EstateSource: Luxury Defined 2016 by Christie's International Real EstateSource: Luxury Defined 2016 by Christie's International Real Estate

From Detroit to Dublin: Factors Driving Growth

Sales increase Market Type Reasons for growth
 89%  Valencia, Spain  Secondary  Economic growth
 63%  Auckland, New Zealand  Primary  Immigration, economic growth 
 52%  Jupiter Island, Florida  Primary  Economic growth
 50%  Sardinia, Italy  Secondary  Economic growth 
 45%  Jackson Hole, Wyoming  Secondary  Gen X angel investors, tech industry entrepreneurs
 45%  Victoria, Canada  Primary  Tech industry, millennial entrepreneurs
 40%  Portland, Oregon  Primary  Tech industry, millennial entrepreneurs, regional migration
 31%  San Antonio, Texas  Primary  Economic growth
 30%  Monterrey, Mexico  Primary  Manufacturing, auto industry, economic growth
 27%  Orlando, Florida  Primary  Economic growth
 27%  Charleston, South Carolina  Secondary  Economic growth
 25%  Atlanta, Georgia  Primary  Film industry, Tech industry
 24%  Palos Verdes, California  Primary  Economic growth
 23%  San Luis Obispo, California  Primary  Economic growth
 23%  Central New Jersey  Primary  Economic growth
 22%  Austin, Texas  Primary  Tech industry, film industry
 17%  Detroit, Michigan  Primary  Auto industry, downtown urban resurgance
 16%  Sarasota, Florida  Secondary  Economic growth, entrepreneurs telecommuting
 14%  Westport, Connecticut  Primary  Economic growth
 11%  Dublin, Ireland  Primary  Tech sector, economic growth


Download Our Exclusive Report on the Luxury Property Market

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Monique Sofo
Christie's International Real Estate

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