The Swiss investment bank UBS has conducted a study comparing the risk of suffering a housing bubble in 24 cities According to their calculations, the German city Munich currently occupies the top of the ranking, with an index of 2.01, in which values above 1.5 pose a risk.
Madrid has entered for the first time in the ranking prepared by the Swiss bank. The city is at position 17 with 0.61 points. At the moment the situation in Madrid is not very worrying but it is striking that it is above cities like New York that has an index of 0.50 and where to buy an apartment in the center of 60 square meters is the eleven year salary . According to UBS the prices in the capital are overrated and have increased by 30 percent since 2012 but are still far from the maximum prices that were experienced in 2007 when the housing bubble burst. The rise in housing prices has already been a cause of concern for the International Monetary Fund (IMF) that warned in the first quarter of this year about the consequences of a new bubble. The European Central Bank (ECB) later warned about the same and advised governments to take macroprudential measures to avoid future crises in the sector that affect the entire economy.
. (tagsToTranslate) Lucia Puig