Are we about to see a real estate bubble in Switzerland? There is no simple answer to this question, as it is generally hard to identify a real estate bubble in its early stages. With this in mind, UBS CIO WM Research launched the UBS Swiss Real Bubble Index in May 2011. The quarterly index highlights the risk of a property bubble on the Swiss residential housing market.

The UBS Swiss Real Estate Bubble Index classifies values into five categories, in order of increasing risk: slump, balance, boom, risk and bubble. The UBS Swiss Real Estate Bubble Index remained in the first quarter 2013 in the risk zone and stands at 1.17, representing an increase of 0.06 index points compared to the previous quarter.

UBS CIO WM Research also publishes a regional risk map in parallel with the index. Exposed regions are defined as regions where house prices are exposed to a substantial risk of correction.

Introductive Interview with M. Holzhey