Published 18. October 2021
Frankfurt has been ranked number one as the biggest real estate bubble on the planet followed by Toronto, Munich and Zurich. The purchase prices of residential properties have grown by over 9% Q1 2020 to Q1 2021.
UBS Wealth Management is conducting an annual study to compare the purchase prices growth of real estate to the affordability of homeownership.
This year the ranking shows the highest increase in Frankfurt, Germany, where the index has actually went down from 2.26 to 2.16. The real estate bubble risk is considered present when the index goes up above 1.5 mark.
Amongst German cities, Munich holds also a high position, but there the index went down dramatically from 2.35 last year to 1.84 in 2021.
Toronto, Zurich and Stockholm also top the list of the highest risk for a property bubble.
On the other end, fair valued cities like Milan, Madrid and Warsaw, tend to show a positiv development of prices compared to affordability of the ownership.
The only undervalued city in the ranking is Dubai from the UAE
The full interactive map and ranking can be viewed on the UBS Wealth Management website.