Bubble risk: Watch out if you’re investing in one of these eight cities

Swiss bank UBS says these markets are displaying telltale bubble signs

TRD New York TRD WEEKEND EDITION /
Oct.October 01, 2017 11:01 AM

UBS’ annual Real Estate Bubble Index uses historical and current data to locate possible global housing bubbles. In 2017, there are eight bubble risks. (Pixabay)

UBS’ annual Real Estate Bubble Index is out and the Swiss bank is highlighting eight cities where bubbles are in full, voluptuous form.

Of course, price bubbles cannot be definitively proven until they burst — hindsight in real estate, like life, is 20/20 — which UBS notes in the report, but based on historical data the dissonance between income and rent, and property prices in these cities, along with excesses in construction and loans, the bank has concluded these markets are displaying the telltale bubble signs.

UBS’s data found cities’ in the top eight of their index experienced an average home price increase of about 50 percent since 2011, compared to non-bubble risk cities whose home prices increased about 15 percent.

From the lowest risk to the highest, here are the top eight cities that made UBS’ annual Bubble Index:

8. Amsterdam

(Wikimedia Commons)

7. Hong Kong

(Flickr/Loïc Lagarde)

6. London

(Pixabay)

5. Sydney

(Shutterstock)

4. Vancouver

(JamesZ/Flickr)

3. Munich

(Stefan Kühn)

2. Stockholm

(Benoît Derrier)

1. Toronto

(Wladyslaw/Wikimedia Commons)

[UBS] — E.K. Hudson


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Texas Republican Rep. Nicholas Van Taylor (Getty, iStock)

Congressman pitching high-risk lifeline for CRE

Congressman pitching high-risk lifeline for CRE
394 Vanderbilt Avenue (Douglas Elliman)

As weather heats up, Brooklyn luxury market doesn’t

As weather heats up, Brooklyn luxury market doesn’t
The threat of eviction hangs heavily above immigrant families who have lost work as a result of the coronavirus pandemic. (Getty)

Eviction bans don’t always protect the most vulnerable

Eviction bans don’t always protect the most vulnerable
Related chairman Stephen Ross and Related Companies Portfolio CEO Richard O’Toole withBronx Terminal Market and Time Warner Center (Getty, Google Maps, Wikipedia)

Related lays out $200M debt settlement plan for Tel Aviv bondholders

Related lays out $200M debt settlement plan for Tel Aviv bondholders
Seth Campbell (iStock)

Keller Williams to cut ties with top franchise owner following sexual harassment allegations

Keller Williams to cut ties with top franchise owner following sexual harassment allegations
Ghost Towers

NYC’s ghost towers: How many Manhattan luxury condos are owned by people who don’t live there?

NYC’s ghost towers: How many Manhattan luxury condos are owned by people who don’t live there?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...