Private getaways set for strong property growth

Ibiza holiday home for sale Find out more

Cities have been the traditionally strong housing markets for prime property hunters, but city getaway locations are expected to take the forefront of the prime residential market in the next five years, says the advisor. The report highlights hotspots such as the Mediterannean, the Alps, South Africa and the Caribbean as having experienced a major turnaround in interest following a downturn thanks to the financial crisis.

Many residential retreats are predicted to record a 10 per cent rise in prices this year, with some returning to market peaks by 2019.

Indeed, as buyers become more confident financially, holiday home hunters are returning to the market at all levels. According to the National Association of Realtors, vacation property sales surged in 2013 in comparison to investment purchases, with high net-worth households picking up recreational property once again.

The median vacation-home price in America was $168,700, up 12.5 percent from $150,000 in 2012.

“There are strong signs that the recovery which started in major world cities in 2009 is now rolling out to the hinterland and boltholes inhabited during weekends and vacations by equity rich homeowners," comments Yolande Barnes, director of Savills World Research.