Professor of economics at New York University's Nouriel Roubini, who predicted the global financial and economic crisis of 2008-2011, forecasts bubbles in real estate markets. By him, twelve countries, six of which are in Europe, are on the edge of crisis, according to ee24.com citing opp-connect.com. In addition, the "overheating" of prices threatens another five countries in the world, but there it will affect only the major cities.
According to Roubini, countries fail forward to success: "What we are witnessing in many countries looks like a slow-motion replay of the last housing-market train wreck. And, like last time, the bigger the bubbles become, the nastier the collision with reality will be."
Neil Irwin, columnist of Washington Post, noticed a trend that is one of the causes of bubbles: people have a lot of money, mortgage rates are low, investment in production does not seem to be profitable, so people buy houses in all major cities around the world, and inflate prices.
So, here is the list of troubled countries :
- Canada
- France
- Switzerland
- Germany
- Norway
- Sweden
- Finland
- Israel
- China
- Singapore
- Australia
- New Zealand
Moreover, the crisis may occur in real estate markets in the largest cities of:
- Brazil
- UK (only in London )
- Turkey
- India
- Indonesia
Get to know more on probabilities and projections of bubbles in real estate markets of Switzerland, Germany, Sweden and Norway.