These Global Cities Show the Highest Real Estate Bubble Risk


This post is by Nick Routley from Visual Capitalist


World map showing which cities show the greatest real estate bubble risk

These Global Cities Show the Highest Real Estate Bubble Risk

Housing bubbles are a tricky phenomenon. As a market gathers steam and prices increase, it remains a matter of debate whether that market is overvalued and flooded with speculation, or it’s simply experiencing robust demand.

Of course, once a bubble bursts, it’s all obvious in hindsight.

One common red flag is when prices decouple from local incomes and rents. As well, imbalances in the real economy, such as excessive construction activity and lending can signal a bubble in the making.

The map above, based on data from the Real Estate Bubble Index by UBS, examines 25 global cities, scoring them based on their bubble risk.

Overinflated Markets

In the 2022 edition of the Real Estate Bubble Index, nine of the cities covered were classified as having extreme bubble risk (1.5 or higher score).

RankRisk CategoryCityBubble Index Score
#1๐Ÿ”ด๐Ÿ‡จ๐Ÿ‡ฆ Toronto2.24
#2๐Ÿ”ด๐Ÿ‡ฉ๐Ÿ‡ช Frankfurt2.21
#3๐Ÿ”ด๐Ÿ‡จ๐Ÿ‡ญ Zurich1.81
#4๐Ÿ”ด๐Ÿ‡ฉ๐Ÿ‡ช Munich1.80
#5๐Ÿ”ด๐Ÿ‡ญ๐Ÿ‡ฐ Hong Kong1.71
#6๐Ÿ”ด๐Ÿ‡จ๐Ÿ‡ฆ Vancouver1.70
#7๐Ÿ”ด๐Ÿ‡ณ๐Ÿ‡ฑ Amsterdam1.62
#8๐Ÿ”ด๐Ÿ‡ฎ๐Ÿ‡ฑ Tel Aviv1.59
#9๐Ÿ”ด๐Ÿ‡ฏ๐Ÿ‡ต Tokyo1.56
#10๐ŸŸ ๐Ÿ‡บ๐Ÿ‡ธ Miami1.39
#11๐ŸŸ ๐Ÿ‡บ๐Ÿ‡ธ Los Angeles1.31
#12๐ŸŸ ๐Ÿ‡ธ๐Ÿ‡ช Stockholm1.22
#13๐ŸŸ ๐Ÿ‡ซ๐Ÿ‡ท Paris1.21
#14๐ŸŸ ๐Ÿ‡ฆ๐Ÿ‡บ Sydney1.19
#15๐ŸŸ ๐Ÿ‡จ๐Ÿ‡ญ Geneva1.14
#16๐ŸŸ ๐Ÿ‡ฌ๐Ÿ‡ง London1.08
#17๐ŸŸ ๐Ÿ‡บ๐Ÿ‡ธ San Francisco0.78
#18๐ŸŸ ๐Ÿ‡บ๐Ÿ‡ธ Boston0.75
#19๐ŸŸ ๐Ÿ‡ช๐Ÿ‡ธ Madrid0.59
#20๐ŸŸ ๐Ÿ‡บ๐Ÿ‡ธ New York0.57
#21๐ŸŸ ๐Ÿ‡ธ๐Ÿ‡ฌ Singapore0.50
#22๐ŸŸข๐Ÿ‡ฎ๐Ÿ‡น Milan0.34
#23๐ŸŸข๐Ÿ‡ง๐Ÿ‡ท Sao Paulo0.20
#24๐ŸŸข๐Ÿ‡ฆ๐Ÿ‡ช Dubai1.16
#25๐ŸŸข๐Ÿ‡ต๐Ÿ‡ฑ Warsaw0.15

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