The UBS Global Real Estate Bubble Index 2021, an annual survey conducted by UBS Global Wealth Management's Chief Investment Office, indicates that on average, the risk of an asset bubble has increased over the past year, as has the potential weight of a price correction in many of the index cities.
Frankfurt, Toronto, and Hong Kong are at the top of this year's index, representing the clearest risk of a bubble in the housing markets analyzed. The risk is also increased in Munich and Zurich, while Vancouver and Stockholm have re-entered the zone of cities threatened by the bubble. Amsterdam and Paris close the list of cities. All analyzed US cities are in the overestimated category. Residential market imbalances are also significant in Tokyo, Sydney, Geneva, London, Moscow, Tel Aviv, and Singapore, while Dubai is the only market undervalued and the only one ranked lower than last year.
As the authors of the report note, the first relative weakness of housing markets in cities in a quarter of a century can be noted. However, the Warsaw residential market is still properly valued, and the recorded price increase was lower than the national average.