UBS Group's global real estate index puts Munich, Toronto, Vancouver, London, Amsterdam and Hong Kong as cities currently in a property bubble.
UBS analysts have seen a strong rise in real estate prices in large cities, with prices only jumping 35% on average over the past five years.
"Although many financial centers are at risk of a housing bubble, we do not have to compare the current situation with pre-crisis conditions," said Mark Haffele, Chief Investment Officer at UBS Global Wealth Management.
Let's compare the data
USA
For cities in the US, values are still below the peak in 2006. Prices in Boston and Chicago remained low in the fair and undervalued territory, while New York, Los Angeles and San Francisco fell into the overstated segment.
Europe
In London, house prices have fallen slightly over the past two years, mainly thanks to Brexit and increased taxes for foreign buyers. The decrease, however, looks like a delay that Soft Brexit will quickly overcome. In Switzerland, stricter mortgage market regulations and higher vacancy rates for rental apartments kept prices low, both in Zurich and in Geneva, compared to London and Stockholm.
Here is the overall UBS ranking:
Source: CNBC
Graphics: CNBC
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