The U.S. housing market is making a comeback, and investors interested in riding the wave can bet on Chicago real estate.

"Chicago's growth is likely to be in line with the economic growth of the U.S. so it is an American recovery play," said Barnes. "Residential prices are now beginning to recover but it still looks cheap in relation to world cities and offers high yields."

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The area is home to the headquarters of various multinationals including McDonald's (MCD) and Exelon (EXC), and it's also known for affluent suburbs where ultra-rich individuals live and play.

The typical price for a two-bedroom apartment in Chicago ranges from $250,000 to $700,000.