San Francisco’s downtown luxury condo market is experiencing a surprising revival, driven by the city’s burgeoning AI ecosystem and strategic pricing adjustments. After a prolonged period of stagnation during the pandemic, high-end properties are finding new buyers who are betting on the tech industry’s continued growth.

Real estate agents like Carmen Legarda from Compass are witnessing a shift in buyer demographics. Previously, downtown condos were often secondary homes for wealthy individuals, but now more buyers are looking to establish primary residences in the heart of the city. The AI boom has been a significant catalyst, with professionals and investors feeling optimistic about San Francisco’s economic trajectory.

At prestigious developments like 181 Fremont, penthouses that once languished on the market are now attracting serious buyers. A prime example is a two-bedroom unit on the 68th floor, which saw its price drop from $15.5 million in 2019 to $10 million in early 2025, ultimately going into contract this summer.

The changing market dynamics are not just about price reductions. Buyers are increasingly drawn to modern amenities, such as rooftop decks, fitness centers, and 24/7 concierge services. Developments like One Steuart Lane are strategically marketing units with premium features and breathtaking views of the Bay Bridge.

Interestingly, the buyer profile has evolved. Today’s luxury condo purchasers include tech executives looking to “rightsize” from larger homes, global property collectors, and local professionals seeking urban living spaces. The lack of new luxury condo developments has created a sense of urgency among potential buyers who see current market conditions as an opportune moment.

Experts like Paul Zeger from Polaris Pacific suggest that the market’s stabilization and renewed confidence in San Francisco’s potential are driving this resurgence. The city’s ability to attract and retain top talent in emerging technologies continues to make it an attractive destination for high-end real estate investments.

As the summer progresses, the downtown luxury condo market appears poised for continued growth, signaling a potential renaissance for San Francisco’s urban living landscape.