Index of bubble in the real estate market of Switzerland, published by UBS, is constantly increasing. At the end of 2013 it stood at 1.20, at the beginning of this year - 1.22, and in June - 1.24, according to the portal ee24.com citing bloomberg.com. Bankers from UBS will officially confirm the formation of the bubble, when the index reaches 2.00.
Low mortgage rates, set by the National Bank, lead to increased demand and higher prices. Since 2008, the number of mortgages increased by 28%, and prices for apartments in Switzerland grew up by 30%. At UBS they say that the Swiss economy is in a high risk zone for the past four quarters, and 18 regions are in a zone of particular risk.
To prevent the situation of 1990, banks are instructed to increase the anti-crisis funds ("countercyclical buffers") to 2% of the mortgage loans, and in the future the size of the fund may rise to 2.5%.
Recall that the index takes into account the proportion between the purchase price and the price of rent, purchase price and income, purchase price and inflation, mortgage debt and income, as well as a number of other indicators.