Miami Tops UBS Global Real Estate Bubble Index - Risk Decreases Overall
Miami has emerged as the city with the highest real estate bubble risk globally, according to the latest UBS Global Real Estate Bubble Index. Despite a slight decrease in the overall risk of housing bubbles for the second consecutive year, imbalances have increased in the U.S., with Miami leading the pack.
Other cities like Tokyo and Zurich also rank high for bubble risk, although Zurich has seen a significant drop compared to last year. Los Angeles, Toronto, and Geneva are among the cities facing elevated risks, while Amsterdam, Sydney, and Boston have moderate bubble risks.
Dubai has seen the largest increase in bubble risk, reflecting its hot real estate market. On the other hand, San Francisco and New York are noted to have a low risk of a real estate bubble. In Europe, cities like London, Paris, Stockholm, and Milan fall into the low-risk category. São Paulo shows the lowest bubble risk among the cities analyzed.
Inflation-adjusted housing prices across the analyzed cities are on average 15% lower than in mid-2022, driven by rising global interest rates. Some cities that previously faced high bubble risks, such as Frankfurt, Munich, and Stockholm, saw real prices fall by over 20%. Despite corrections in some markets, Dubai and Miami have continued to surge, while strong corrections were observed in Paris and Hong Kong.
Vancouver, Sydney, and Madrid saw real price increases of more than 5% compared to last year. It's important for investors and homeowners to stay informed about these trends to make informed decisions about their finances and investments.