In what cities of the world is the highest risk of a bubble in the real estate market? Swiss financial holding company UBS conducted a large study — Global Real Estate Bubble Index.

What is a housing bubble? It is a rapid rise in home prices that is caused by increased demand and limited supply. When a bubble bursts (usually due to rising interest rates), demand falls, and with it, so do prices.

Factors taken into account during the analysis include the price of real estate to income from it and the price of real estate to its rental value, changes in the ratio of mortgages to GDP and construction to GDP, and the relative value of a city's real estate compared to that of the country.  

Here is how the list of assessed countries looks in descending order of risk of a bubble in 2023:

1. Zurich, Switzerland
2. Tokyo, Japan
3. Miami, USA
4. Munich, Germany 
5. Frankfurt, Germany
6. Hong Kong
7. Toronto, Canada
8. Geneva, Switzerland
9. Los Angeles, USA
10. London, United Kingdom

And here's what that list looked like in 2022:

1. Toronto, Canada
2. Frankfurt, Germany
3. Zurich, Switzerland
4. Munich, Germany 
5. Hong Kong 
6. Vancouver, Canada
7. Amsterdam, Netherlands
8. Tel Aviv, Israel
9. Tokyo, Japan
10. Miami, USA

«Бывает „квадрат“ и по €15,000». Эксперт подробно о рынке недвижимости Швейцарии

Of course, besides the overvalued ones, there are also cities with fair real estate prices, here they are: 

1. Milan, Italy
2. New York, USA
3. Singapore
4. Madrid, Spain
5. Boston, USA
6. San Francisco, USA
7. Dubai, UAE
8. Sao Paulo, Brazil
9. Warsaw, Poland