There is a high risk of a bubble in the real estate market in Zurich - a global leader.

Zurich and Tokyo remain two cities in the world where the risk of overheating real estate prices persists.

According to the real estate index published on Wednesday, September 20, 2023, the risk of real estate bubbles has significantly decreased worldwide. Last year, the risk zone included nine out of the 25 cities studied, while this year it includes only two - Zurich and Tokyo.

With a bubble risk of 1.71, Zurich ranks first in the rating, slightly ahead of Tokyo (1.65 points), where the bubble risk starts at 1.5 points.

The cities of Toronto, Frankfurt, Munich, Hong Kong, Vancouver, Amsterdam, and Tel Aviv have bid farewell to the risk of a bubble over the past year.

The authors of the study attribute the decrease in risks primarily to the drop in real estate prices.

It is expected that real estate prices will continue to decline in the long term, which will also reduce risk.