UBS Publishes Report on Cities With Housing Price Imbalances

2 October 2019 – The Swiss investment bank UBS has published its annual report, the UBS Global Real Estate Bubble Index 2019, which analyses residential real estate prices in 24 major cities around the world. The bank stated that half of those cities are either facing the risk of a property bubble or are somewhat to considerably overvalued.  

For the first time, the investment bank added Madrid to its list, stating that, while there seems to be no immediate risk of a speculative bubble, the Spanish capital is suffering from an overvaluation. In 2017, an article in the Economist had already suggested that housing prices in Madrid were about 25% above fair value, and prices have increased steadily since then.

UBS’s index also noted that cities including Munich, Toronto, Hong Kong, Frankfurt, Vancouver, Paris and Amsterdam were at risk of a bubble. Zurich, London, San Francisco, Tokyo and Stockholm are also suffering from significant imbalances. Finally, prices are somewhat overvalued in Madrid, Los Angeles, Sydney, Geneva and New York.

Original Story: El Confidencial – Elena Sanz

Adaptation/Translation: Richard D. K. Turner