GLOBAL REAL ESTATE

Visualizing the highest Real Estate bubble risk in 2022

We examine which global cities are most at risk of being in a housing bubble & how they compare to last year

Real Estate bubbles usually emerge in areas where real estate demand far outstrips supply. Other factors that influence this segment of an economy include local incomes, rents, excessive construction activity, and lending. The ultra-accommodative monetary policies put in place with the onset of the pandemic didn’t help create a balance in many of the overheated real estate markets of the world.

Although many of the cities in the current edition are the same as we saw in the 2021 edition, there have been some changes too. Today’s infographic (above) data was gathered from the Real Estate Bubble Index by UBS — scoring 25 global cities on their bubble risk. Like last year, nine of the twenty-five countries featured were at an extreme bubble risk. All these cities have a risk score of 1.5 and above.

The infographic classifies these cities with a three-tier classification system: Bubble risk (>1.5 ), Overvalued (0.5–1.5) & Fair-valued (-0.5–0.5) Canada remains featured prominently in the Top 25 list — Toronto and Vancouver were pretty high. Vancouver stayed at №6 on the…