Global real estate bubbles
Frankfurt, Toronto and Hong Kong lead the cities with the most inflated housing markets. Our first chart this week brings together the UBS Global Real Estate Bubble Index with Oxford Economics’ macroeconomic indicators for selected metropolitan areas. Markets rated below -1.5 are depressed; those ranging between -1.5 to -0.5 are undervalued, -0.5 to 0.5 are fairly valued, 0.5 to 1.5 are overvalued and everything above are in a bubble.
The German-speaking parts of Europe, as well Canada’s two biggest cities, score high on the index while major US cities are still relatively undervalued despite large house price rises in recent years.