The UBS Global Real Estate Bubble Index publishes an annual ranking of cities with the highest risk of a housing market bubble. According to the latest report, European cities face the greatest risk, while São Paulo has been recognized as one of the most fairly valued housing markets in the world.
The UBS Global Real Estate Bubble Index measures the risk of a “bubble” in major global housing markets. A real estate bubble arises when property prices are significantly overvalued compared to their underlying fundamentals. UBS analysts define a bubble as a substantial and sustained mispricing of an asset, which cannot be definitively proven until it bursts
While many major global cities face the risk of a real estate bubble, São Paulo has been recognized as one of the most fairly valued housing markets. Along with São Paulo, other cities in this category include Boston, Milan, and Dubai.
Moderate Price Growth
Unlike other major cities, housing prices in São Paulo are increasing at a moderate pace, helping prevent a market bubble.
Housing Affordability
The ratio of property prices to household incomes remains stable, making housing accessible to a wide range of residents.
Active Construction
A steady influx of new residential developments in São Paulo meets growing demand, preventing a shortage of available properties.
Economic Stability
As Brazil’s largest economic hub, São Paulo benefits from a consistent demand for both commercial and residential real estate.
São Paulo, being the largest economic center in Brazil, is an attractive destination for investors thanks to its fair property valuations, stable price growth, and well-developed infrastructure. The experts at ALTUM ESTATE can help you navigate the São Paulo real estate market and select the best investment opportunities, ensuring security and confidence in your ventures.
