Global Real Estate Bubble Index 2024 - Key Insights from UBS

The UBS Global Real Estate Bubble Index 2024 provides an in-depth examination of housing market vulnerabilities across major cities globally, identifying those at risk of property overvaluation. The report assesses market imbalances driven by factors such as economic growth disparity, interest rate changes, and urbanisation. By benchmarking price-to-income ratios, rent affordability, and economic sustainability, the index highlights trends shaping the property market, revealing regions where speculative bubbles may be forming. A surge in property prices without corresponding wage growth or economic stability often signals these imbalances. Cities recognised for heightened risks are noted for unsustainable price accelerations driven by investor speculation, borrowed leverage, or insufficient housing supply. Conversely, some areas exhibit more balanced conditions, with realistic pricing trends in line with their economic fundamentals. The index also sheds light on how global macroeconomic shifts, such as inflation and interest rate policies, directly influence housing affordability and investment behaviours. Long-term trends, such as urban migration and technological advancements, are entwined with market volatility, often pushing prices upward in innovation hubs. Insights offered by the index serve as a cautionary tool for policymakers, urban developers, and investors, calling for calculated actions to stabilise sensitive markets. The 2024 report underscores the need for versatile strategies to balance growth, mitigate bubble risks, and foster sustainable urban expansion in the face of shifting financial landscapes.