DOI: 10.32725/978-80-7394-976-1.40

Identification of current financial bubbles on the global real estate markets

Monika Matušovičová, Sandra Matušovičová
University of Economics in Bratislava, Faculty of Commerce, Dolnozemská cesta 1, 852 35 Bratislava, Slovak Republic, moni-ka.matusovicova@euba.sk
University of Economics in Bratislava, Faculty of National Economy, Dolnozemská cesta 1, 852 35 Bratislava, Slovak Republic, smatusovicova1@student.euba.sk


The article relates to the topic of speculative price bubbles which arise on the real estate markets. High property prices, historically high inflation and rising construction interest rates have lately brought attention to the question whether a real estate bubble is currently present on the respective markets and if a housing market crash is coming. In order to develop an understanding of this, a theoretical basis of the phenomenon of financial bubbles is crucial. The main aim of the article was to then conduct a quantitative calculation of price valuation indicators of housing affordability and subsequently construct a comparative ranking table for the world real estate markets. Leading up to timeline of first half of 2022, the results indicate an occurrence of a possible financial bubble on the real estate markets of China, Western and Central Europe. Within the present effects of the so-called "bubble in everything", the results were justified by current investment conditions, limitations of the used indicators were considered and preventive measures were proposed.
 

Klíčová slova: Financial bubbles, overvaluation, price indicators, real estate market, behavioral economics, investor behavior

stránky: 274-280



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