Global real estate markets cooled in 2025 due to high rates, reducing bubble risk, though Miami, Tokyo, and Zurich remained overvalued.

In 2025, most global real estate markets cooled as high mortgage rates and affordability issues reduced bubble risk, though Miami, Tokyo, and Zurich remained overvalued with scores above 1.5. Madrid and Dubai also showed strong price growth, indicating overvaluation. Conversely, Toronto, Hong Kong, Vancouver, Frankfurt, London, and San Francisco saw price declines, moving into the fairly valued range. Overall, the trend showed lower bubble risk than in 2024, though supply shifts and affordability pressures may shape future market dynamics.