Zurich and Tokyo are the only two cities globally facing high risk for a housing bubble, according to the UBS Global Real Estate Bubble Index 2026. The index indicates elevated risk levels are evident in Miami, Dubai, Seoul, Lisbon and Geneva. Risk levels are moderate in Los Angeles, Singapore, Hong Kong, Sydney, Vancouver and Toronto. In Europe, Milan, Madrid, Frankfurt and Munich also fall into the moderate-risk category. According to the index, London and Paris face low bubble risk. Outside Europe, New York City, San Francisco, and Sao Paulo, Brazil, are classified in the same category.
As housing affordability has declined for many households, accumulated financial wealth has become an increasingly dominant driver of housing demand, notes the report. Strong gains in global equity markets have boosted the purchasing power of affluent households, enabling larger down payments and, in some cases, outright cash purchases. In parallel, the rapid expansion of AI-related investm
