2023-09-20 17:37:02
There is a remarkable paradigm shift around the world: after a period of very low inflation rates and low interest rates in many industrialized countries, something like a global interest rate turnaround has begun. First, capital market interest rates rose in many places, then also the key interest rates of the most important central banks. And this is now having a strong impact on real estate prices in many countries. “2023 represents a turning point, the adjustment is in full swing,” says Matthias Holzhey from the Swiss bank UBS. “We have had the strongest price decline in over 15 years – since the global financial crisis,” reports his colleague Maciej Skoczek.
Once a year, UBS publishes its “bubble index” – and it always attracts a lot of attention. The experts at the major Swiss bank compare how property prices have developed in relation to rents and incomes in 25 cities from all over the world. They find out how worrying the indebtedness of property buyers is and whether there are any signs that the construction industry could be overheating.
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