Where are homes most overvalued?

As of late 2025/early 2026, homes are most overvalued in areas with severe price-to-income imbalances, specifically Miami, Portugal, and several major Sun Belt cities in the U.S.. Miami is ranked as the most overvalued market, with significant price premiums driven by high demand and limited supply.

What is the most overvalued housing market in the world?

Miami has been ranked as the world's most overvalued housing market, according to the 2025 UBS Global Real Estate Bubble Index.

Is UK property overvalued?

With so much demand for homes in the capital, it would be strange if people weren't willing to pay over the market value. However, a recent study suggests values in the UK housing market are overvalued by 20%, and in London, the overvaluation might be as much as 50%, according to S&P Global Ratings.

Where are home values falling the most?

Homes in the West and South are losing value most, Zillow says.

Is the housing market overvalued in Portugal?

The European Commission estimates that the average overvaluation of housing prices in Portugal is higher by around 25%, "surpassing other property markets" in the bloc. Housing affordability is deteriorating across Europe, but Portugal has emerged as the EU country with the most overvalued property prices.

The Five Most Overpriced Housing Markets

Are houses cheaper in Spain or Portugal?

In Portugal, property prices, especially outside Lisbon and Porto, are often lower than in popular Spanish locations. Algarve, although very attractive, is still often cheaper than Costa del Sol or Costa Brava.

What will happen to UK house prices in the next 5 years?

UK house price predictions for the next five years (roughly 2025-2030) suggest a period of slower growth initially, followed by a gradual acceleration, with total cumulative increases potentially reaching 15-25%, driven by falling mortgage rates and wage growth, though regional disparities will be significant, with London lagging and the North/Midlands leading. Experts anticipate annual growth to be modest (2-4%) in the near term (2025-2026) before picking up (4-6%) as the economic outlook improves, with major forecasts from Savills, Knight Frank, and Halifax/Nationwide showing similar long-term trends.

Should I buy a house now or wait until 2026 in the UK?

For first-time buyers, 2026 could be a good time to get on the property ladder, experts say. Not only are house prices likely to remain more stable, but borrowing costs are lower. “Hopefully that's to stay, but we don't know,” says Merrett. “Get [your mortgage rate] fixed.”

Where are house prices dropping in the UK?

the South East and the North East saw the biggest monthly price falls, with movements of -1.2% Yorkshire and the Humber experienced the greatest annual price rise, up by 4.5% London was the only region not to experience an annual rise, with a fall of -1.8%

Why is the UK so overpriced?

It is due in part to the economic impact of the COVID-19 pandemic, including a global surge in inflation, as well as the economic instability caused by Brexit and the Russo-Ukrainian war. While all in the UK are affected by rising prices, the crisis most substantially affects low-income persons.

What country has the worst housing prices?

For the seventh year in a row, the annual international survey named Hong Kong as the most expensive housing market. This year Hong Kong was given a rating of 18.1 per cent. According to the survey, Sydney, Australia was the second most expensive housing market with a rating of 12.2.

How to know if a house is overvalued?

So, you need to:

1. Research the local market inside out. ...
2. Find out how much comparable properties have sold for. ...
3. Guesstimate the value of similar properties if necessary. ...
4. Keep your eye on the local market house price trends. ...
5. Find out as much as you can about the history of the property. ...
6. Talk to rival estate agents.

Is Dubai in the property bubble risk?

Risk of a Bubble

Global economic reports have begun sounding the alarm. The UBS Global Real Estate Bubble Index for 2025 placed Dubai in the “high-risk” category after prices surged more than 50 percent in five years, the highest increase among all cities in the study.

What is the 2% rule in property?

The 2% rule in real estate investing is a quick guideline where a rental property is considered potentially profitable if its monthly rent is at least 2% of the total purchase price (including initial repairs/costs). For example, a $200,000 property should aim for $4,000 in monthly rent ($200,000 x 0.02). It's a useful first-pass filter to screen properties for strong gross cash flow, but it doesn't account for all expenses and market specifics, so a detailed financial analysis is still needed. 

Will house prices double in 10 years?

According to Savills' figures, house price growth is expected to remain constrained until 2027, at one per cent this year and two per cent the next. Values will grow in real terms from 2028 onwards, for the first time since 2022. In London, no growth is projected until 2027, and then only at two per cent.

What are the cheapest areas to buy in the UK?

Northern England and Scotland dominate the list of the top 10 cheapest places to buy a house in the UK. The cheapest place when you can buy a house in the UK is Burnley in Lancashire, which has average house prices of £117,636 according to Land Registry Figures for November 2024.

Is Portugal a tax haven for Brits?

Yes, the UK and Portugal have what is known as a double taxation agreement (DTA). This is designed to prevent the same income from being taxed twice, once in the UK and once in Portugal. The DTA covers income tax and capital gains tax among other taxes, although the situation can be more complicated for pensions.

How long can you stay in Portugal if you own a property?

Owning property in Portugal doesn't grant automatic residency; non-EU citizens can stay 90 days in 180, but for longer stays, you need a visa like the D7 (passive income), D8 (digital nomad), or a Golden Visa (though property investment is mostly phased out for this now), all requiring proof of income/funds and leading to residency permits, with tax residency generally triggered by 183+ days or maintaining a main home there, requiring separate applications for legal long-term stays.

Is Portugal real estate overpriced?

The researchers estimated that the appreciation of house prices above their average real value is more pronounced in Portugal. “Prices are estimated to be overvalued by around 35% in Portugal, which is the only country where overvaluation increased significantly by 2024.”