Which countries are at risk from the property bubble in real estate ? In real estate it is important to understand this. Both on the demand side, but also on the supply side. The balances that could be compromised, in fact, depend heavily on the dynamism of a nation, in each sector.
Understanding in time which countries are at risk of entering a period of real estate bubble could be useful to prevent irreversible risks.
In the following lines, we will illustrate the world situation, and we will understand together what are the problems that would potentially lead areas to fall into the deepest crisis.
Let’s start with the list of countries at risk of falling into the real estate bubble. We mainly identify Munich, Toronto, Hong Kong and Amsterdam. Subsequently, we also find deep but less evident imbalances in Zurich, London, San Francisco, Tokyo and Stockholm.
The chief investment officer of the Ubs Global Wealth Management, pointed out that at the global level the economic uncertainty has influenced the mentality of the potential buyer.
However, the price increases examined, depending on the effect of inflation, came to a halt in the last quarter.
The European city with a double-digit increase was Frankfurt. Other realities such as Moscow, Boston, Sydney, Vancouver and Dubai remained more stable.
From an initial analysis, it is possible to understand how the real estate bubble has mainly affected metropolitan areas.
In the collective imagination, what might be useful to discourage the real estate bubble would be the collapse of interest rates. Unfortunately, in this case, the solution is not part of the common logic. In fact, such a manoeuvre is not enough. The problem lies in the inability of the buyer to settle in the world real estate, due to economic constraints but also social fears.
Let us remember, in fact, that the political situation in most countries of the world is subject to the game of US-China forces. A “cold war” that negatively affects the optimism of investors.
Ultimately, we will see how the world’s macro areas are juggling to avert bubble risk.
In Europe, low interest rates help buyers slightly. Milan and Madrid are beginning to recover slowly, while Paris and Frankfurt seem to be bogged down in the real estate bubble. London and Stockholm, which were previously in critical condition, seem to be recovering (the first because of Brexit).
In the United States, the level of valuation has not increased in the main American realities. To stay behind and away from these real estate challenges is Chicago, underestimated in real estate.
In the Middle East the main price increases were recorded, in a constant manner, until 2017. Except for realities like Dubai, it generally seems that there are no situations so critical as to compromise the real estate market.
How will the situation evolve? For the moment there are no certain answers. But we invite you to follow as always our portal to be always updated on all the latest news!
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good article