London second from top of Real Estate Bubble Index

September 28, 2016

According to the UBS Group AG analysis of 18 financial centres, Vancouver tops the UBS Global Real Estate Bubble Index as being at most risk of a housing bubble, London, Stockholm, Sydney, Munich and Hong Kong follow behind in bubble risk section.

House prices in the bubble risk cities have increased on average by almost 50 percent since 2011, low interest rates, global capital inflows and optimism among investors about returns have all contributed to inflate values.

All European cities are overvalued, according to the report, Milan is the only exception.

UBS Wealth Management’s Claudio Saputelli, reportedly said: “What these cities have in common are excessively low interest rates, which are not consistent with the robust performance of the real economy. When combined with rigid supply and sustained demand from China, this has produced an “ideal” setting for excesses in house prices.”

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

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