Property prices in London and other global financial centres "are now, in many cases, fundamentally unjustified," says UBS. "The risk of a real estate bubble in these cities has risen sharply."
Knight Frank's Prime Global Rental Index rose by 1.6% in the final quarter of 2012, taking the annual increase to 5.1% and putting the index 20% above its post-financial crisis low in Q2 2009.