According to the "UBS Global Real Estate Bubble Index 2021" study, Frankfurt am Main is one of the cities with the highest real estate bubble risk, along with Toronto and Hong Kong. One of the reasons cited for this is the inflation-adjusted growth in residential property prices. From mid-2020 to mid-2021, this accelerated by an average of six percent in the aforementioned and other cities.
Corona also contributed to this situation, according to UBS. More and more people are deciding to buy real estate. In doing so, they benefit from favorable loans, but take a greater risk because of rising real estate prices: The debt ratio rises because the loans can no longer be repaid on time.
In the study, those responsible at UBS analyzed 25 major cities worldwide and, among other things, also recorded the developments for Europe, the Middle East, Asia-Pacific (APAC) and the USA. In Germany, there is a high risk of a bubble in Munich as well as Frankfurt am Main. For more information on the study, please visit ubs.com.
Source: ubs.com
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