Zurich and Tokyo lead UBS Global Real Estate Bubble Index 2026

The UBS Global Real Estate Bubble Index 2026 identifies Zurich and Tokyo as having the highest risk of a housing bubble among 23 international metropolitan areas. Zurich has moved to the top of the index with a score of 1.69, surpassing Tokyo's 1.54.

In Zurich, residential prices have increased by nearly 140% in real terms over the last twenty years, significantly outpacing the 40% rise in rents and 30% rise in incomes. This disparity has created severe affordability challenges; a highly qualified worker in Zurich may require over eight years of gross income to purchase a 60-square-meter home near the city center, with annual housing costs potentially exceeding 50% of gross income.

The report attributes these imbalances to a combination of low financing costs and limited supply. In Zurich, official statistics showed a vacancy rate of only 0.11% as of June 2026. While Miami previously held a top position, it has moved into a category of increased risk rather than peak bubble levels. Other markets showed varying trends, with imbalances reducing in Tokyo and Sydney, while Singapore remained relatively stable.