Top 10 Overpriced Real Estate Markets


For those of you not interested in the villas options for frequent international getaways, here are the most over-priced real estate markets internationally.

By using the Price to earnings ratio, a ratio used to analyze a market’s stock valuation of a company its shares and that company’s earnings, Forbes came up with the most over-priced real estate markets in the world. Below is the top three:

Monaco, P/E (price-to-earnings) 74.07
It should be no surprise that Monaco tops the list. This two-mile long municipality’s no-tax law attracts many international moguls. Simultaneously Monaco cannot accommodate all its big spenders which makes the real estate market a hot zone.
In order to relieve the real estate tension, Monaco plans to expand into the sea by building an artificial peninsula.

Rome, P/E: 50.51
Despite Italian economy’s slow-growth prices in central Rome are very high and the property transaction premium fee of 14.6% insure an elevated P/E ratio

Paris, P/E: 37.45
As for Rome, Paris’ steep transaction tax on buyers (11.5%) and sellers (4.8%) along with the city’s extremely high prices extremely high prices maintain the market very costly for the rate of return.

See the full list at Forbes