![]() ![]() This is even more impressive when considering that Shenzhen was a small fishing village until the 1970s. Hong Kong, along with Shenzhen (#2), and Guangzhou (#5) are part of the burgeoning megacity known as the Pearl River Delta, which is home to over 1,500 skyscrapers. Topping the charts is Hong Kong, with an impressive 657 skyscrapers, including six supertalls (buildings over 300 meters tall). Unsurprisingly, China’s cities dominate the list, solidifying the country’s reputation as a global powerhouse of tall buildings. In this graphic, which uses data from the Council on Tall Buildings and Urban Habitat ( CTBUH), we reveal the 25 cities with the most skyscrapers and supertall buildings globally. When it comes to soaring skylines and architectural marvels, no country has embraced the vertical revolution quite like China. Ranked: The Cities with the Most Skyscrapers in 2023 In the short term, we may see what UBS calls “the era of urban outperformance” come to an end. Add in the societal shifts occurring right now, and predicting the future of these markets becomes more difficult. Debt-to-income ratios continue to rise, and lending standards, which were relaxed during the pandemic, are tightening once again. All but four of the cities above-Milan, Paris, New York, and San Francisco-have had positive growth year-on-year.Įven as real estate bubbles continue to grow, there is an element of uncertainty. Overall, prices have been trending upward almost everywhere. Below are growth rates for 2021 so far, and how that compares to the last five years. Remote work options and office downsizing is changing the value equation for many, and as a result, housing prices in non-urban areas increased faster than in cities for the first time since the 1990s.Įven so, these changing priorities haven’t deflated the real estate market in the world’s global cities. Overheated markets are nothing new, though the COVID-19 pandemic has changed the dynamic of real estate markets.įor years, house price appreciation in city centers was all but guaranteed as construction boomed and people were eager to live an urban lifestyle. ![]() Note: The Real Estate Bubble Index does not currently include cities in Mainland China. Residential prices have trended down for the past six years and are now down nearly 40% from 2014 levels. ![]() Meanwhile, Dubai is listed as “undervalued” and is the only city in the index with a negative score. In fact, over the past three decades, residential home prices in Canada grew at the fastest rates in the G7.ĭespite civil unrest and unease over new policies, Hong Kong still has the second highest score in this index. Despite efforts to cool down these hot urban markets, Canadian markets have rebounded and continued their march upward. In the former, nearly 30% of purchases in 2021 went to buyers with multiple properties, showing that real estate investment is alive and well. Two Canadian cities also find themselves in bubble territory: Toronto and Vancouver. Germany’s financial hub has seen real home prices rise by 10% per year on average since 2016-the highest rate of all cities evaluated. With this in mind, which global markets are exhibiting the most bubble risk? The Geography of Real Estate BubblesĮurope is home to a number of cities that have extreme bubble risk, with Frankfurt topping the list this year. As well, imbalances in the real economy, such as excessive construction activity and lending can signal a bubble in the making. Even so, there are some signs to watch out for.Īs one example, a decoupling of prices from local incomes and rents is a common red flag. ![]() Reading the Signsīubbles are hard to distinguish in real-time as investors must judge whether a market’s pricing accurately reflects what will happen in the future. The map above, based on data from the Real Estate Bubble Index by UBS, serves as an early warning system, evaluating 25 global cities and scoring them based on their bubble risk. After all, even though many of us “know a bubble when we see it”, we don’t have tangible proof of a bubble until it actually bursts. Identifying real estate bubbles is a tricky business. Ranked: The World’s Biggest Real Estate Bubbles in 2021 ![]()
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