Now London is out of the list of cities whose real estate market is similar to an» economic bubble», according to an annual Swiss Bank UBS survey. The city with the most speculative property price is Munich, where the London housing market was just overvalued.
The UBS research covers 24 cities around the world and assesses their real estate cost and what the risk of an «economic bubble» appearance. In 2019, the list of cities with the most overvalued real estate prices included following: Munich, Toronto, Hong Kong, Amsterdam, Frankfurt, Paris and Vancouver. The research states that European cities real estate prices increase is triggered by low interest rates in banks, which allow you to get funding for new projects.
For the first time Moscow has appeared in such kind of rate, that reiterated London episode with overvaluation a real estate market, notably without the risk of an «economic bubble».
This research also provides data on annual wage amount that would be required to buy an apartment of 60 square meters in a particular city. In London the figure is 14 years where in Chicago — the city with the most undervalued real estate, it is only three years.
In July 2019, real estate prices in London fell by 1,4% (year-on-year). In general, the UK property prices growth fell to 0,7%, which is all-time record since 2012. For example, in the peak period before the Brexit referendum in June 2016, prices rose up to 8,2%.
