L AST BY TE
REAL ESTATE BUBBLE INDEX
UNDERVALUED FAIR-VALUED OVERVALUED BUBBLE RISK
MUNICH
AMSTERDAM
FRANKFURT
PARIS
ZURICH
LONDON
STOCKHOLM
GENEVA
MADRID
MILAN
2.01
1.84
1.71
1.54
1.40
1.31
1.10
0.90
0.61
0.20
–0.26
–0.77
TORONTO
HONG KONG
VANCOUVER
SAN FRANCISCO
TOKYO
LOS ANGELES
SYDNEY
TEL AVIV
MOSCOW
NEW YORK
SINGAPORE
BOSTON
DUBAI
CHICAGO
1.86
1.84
1.61
1.15
1.11
0.99
0.88
0.78
0.50
0.50
0.45
0.36
136
FORTUNE.COM // NOVEMBER 2019
HOME PRICES IN SOME OF THE WORLD’S most expensive cities may be ready to lose
their fizz. According to fresh analysis by UBS drawn from its Global Real Estate
Bubble index, several European cities have surged into dangerous territory lately,
fueled by low mortgage rates. The UBS index weighs five factors—such as price-to-
income and change in mortgage-to-GDP—to assess the probability of a correction
in specific markets. Price-to-rent ratios, for instance, have rocketed over the past
decade in cities such as Munich and Zurich. But average price growth globally this
year was the lowest since 2012. Falling prices could be next. —BRIAN O’KEEFE
ANALYZING
BUBBLE RISK
SOURCE: UBS GRAPHIC BY NICOLAS RAPP
