The Year of the “Comeback” Markets
We explore the factors behind the resurgence of several real estate markets in 2015
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.
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 |
