Most stock markets have seen an overall bull run over the past ten years, rising from the financial crisis and investors are concerned the shoe may soon be on the other foot. Global real estate markets, some of which have risen to the highest point post 2008, are also operating in risky territory.

According to a UBS global real estate bubble index report, a significant number of major global real estate markets are on the verge of going burst as a result of the easy money which has filled up property in key locations.

The 2018 Real Estate Bubble Index compiled by the Swiss investment bank has identified six major global cities that are courting bubble territory. These include Hong Kong, Munich, Toronto, Vancouver, Amsterdam and London, spread across three continents.

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The index ranks cities on an index with scores greater than 1.5 considered to be at bubble risk. Hong Kong topped the index with a score of 2.03 this year, moving above Munich (1.99), Toronto (1.95), and Vancouver (1.92) which are also at bubble risk. Amsterdam and London scored 1.65 and 1.61 on the index respectively.

Other major cities including Paris, Stockholm, Frankfurt and Sidney are not far from the red mark either.

According to the UBS report, rising interest rates in major markets have led to a rise in the prices of real estate making houses unaffordable. The inevitable decline in prices has already been spotted in half of the bubble cities.

Due to the interconnected nature financial markets, a real estate bubble in major global financial nodes like London and Hong Kong would likely produce ripple effects to other cities on the globe with negative implications.