Visual Capitalist


    Visual Capitalist

    Visual Capitalist
    Data-driven visuals that help explain a complex world
    Tue, 19 Oct 2021 20:23:35 +0000


    Visual Capitalist

    The World’s Biggest Real Estate Bubbles in 2021

    Tue, 19 Oct 2021 19:19:12 +0000

    According to UBS, there are nine real estate markets that are in bubble territory with prices rising to unsustainable levels.

    The post The World’s Biggest Real Estate Bubbles in 2021 appeared first on Visual Capitalist.


    Ranked: The World’s Biggest Real Estate Bubbles in 2021

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    Ranked: The World’s Biggest Real Estate Bubbles in 2021

    Identifying real estate bubbles is a tricky business. After all, even though many of us “know a bubble when we see it”, we don’t have tangible proof of a bubble until it actually bursts.

    And by then, it’s too late.

    The map above, based on data from the Real Estate Bubble Index by UBS, serves as an early warning system, evaluating 25 global cities and scoring them based on their bubble risk.

    Reading the Signs

    Bubbles are hard to distinguish in real-time as investors must judge whether a market’s pricing accurately reflects what will happen in the future. Even so, there are some signs to watch out for.

    As one example, a decoupling of prices from local incomes and rents is a common red flag. As well, imbalances in the real economy, such as excessive construction activity and lending can signal a bubble in the making.

    With this in mind, which global markets are exhibiting the most bubble risk?

    The Geography of Real Estate Bubbles

    Europe is home to a number of cities that have extreme bubble risk, with Frankfurt topping the list this year. Germany’s financial hub has seen real home prices rise by 10% per year on average since 2016—the highest rate of all cities evaluated.

    housing bubble index 2021

    Two Canadian cities also find themselves in bubble territory: Toronto and Vancouver. In the former, nearly 30% of purchases in 2021 went to buyers with multiple properties, showing that real estate investment is alive and well. Despite efforts to cool down these hot urban markets, Canadian markets have rebounded and continued their march upward. In fact, over the past three decades, residential home prices in Canada grew at the fastest rates in the G7.

    Despite civil unrest and unease over new policies, Hong Kong still has the second highest score in this index. Meanwhile, Dubai is listed as “undervalued” and is the only city in the index with a negative score. Residential prices have trended down for the past six years and are now down nearly 40% from 2014 levels.

    Note: The Real Estate Bubble Index does not currently include cities in Mainland China.

    Trending Ever Upward

    Overheated markets are nothing new, though the COVID-19 pandemic has changed the dynamic of real estate markets.

    For years, house price appreciation in city centers was all but guaranteed as construction boomed and people were eager to live an urban lifestyle. Remote work options and office downsizing is changing the value equation for many, and as a result, housing prices in non-urban areas increased faster than in cities for the first time since the 1990s.

    Even so, these changing priorities haven’t deflated the real estate market in the world’s global cities. Below are growth rates for 2021 so far, and how that compares to the last five years.

    housing bubble price increases 2021

    Overall, prices have been trending upward almost everywhere. All but four of the cities above—Milan, Paris, New York, and San Francisco—have had positive growth year-on-year.

    Even as real estate bubbles continue to grow, there is an element of uncertainty. Debt-to-income ratios continue to rise, and lending standards, which were relaxed during the pandemic, are tightening once again. Add in the societal shifts occurring right now, and predicting the future of these markets becomes more difficult.

    In the short term, we may see what UBS calls “the era of urban outperformance” come to an end.

    The post The World’s Biggest Real Estate Bubbles in 2021 appeared first on Visual Capitalist.



    Showcasing the Strength of Canadian Gold Mining

    Tue, 19 Oct 2021 17:46:51 +0000

    Canadian gold mining has grown to become a highly prolific industry, thanks to its geological riches and political stability.

    The post Showcasing the Strength of Canadian Gold Mining appeared first on Visual Capitalist.


    The following content is sponsored by Clarity Gold.

    Showcasing the Strength of Canadian Gold Mining

    Gold mining has long played an integral role in shaping Canada’s cities and its modern day economy. The gold mining infrastructure that was built alongside the country’s towns in the 19th century has grown to provide $21.6 billion worth of exports for Canada in 2020.

    When combined with the country’s superb geology, Canada’s jurisdictional strengths make it one of the most prolific and secure locations in the world for mining companies to explore, develop, and produce gold.

    This infographic sponsored by Clarity Gold dives into how Canada has grown into a nation built for gold mining. Both in how the country facilitates the production of gold, and how the gold mining industry supports Canada’s economy and local communities.

    Canada’s Golden Geology and Production

    Gold is scattered across the Canadian landscape in a variety of gold mining regions and districts, with the most prolific located between Ontario and Québec.

    The 2 billion year-old Archean greenstone belt that arcs through the centre of the Canadian shield provides the foundation for the Abitibi gold belt, which has produced more than 190Moz of gold.

    Gold Mining District/Region Provinces/Territories Gold Produced (million troy ounces)
    Abitibi Greenstone Belt Ontario and Québec >190Moz
    Trans-Hudson Corridor Saskatchewan and Manitoba >40Moz
    Red Lake Ontario >30Moz
    Golden Triangle British Columbia >5Moz

    Source: Resource World

    The Trans-Hudson corridor in Saskatchewan and Manitoba has produced more than 40Moz of gold, while the Red Lake mining district of eastern Ontario and the Golden Triangle in British Columbia have delivered >30Moz and >5Moz respectively.

    Last year, Canada’s top 10 mines produced 3.26 million ounces of gold combined, equating to more than $6 billion worth of the yellow precious metal.

    Mine Province/Territory Primary Owner/Operator 2020 Gold Production (thousand troy ounces)
    Canadian Malartic Québec Yamana/Agnico Eagle 569Koz
    Detour Lake Ontario Kirkland Lake 517Koz
    LaRonde (incl. LZ5) Québec Agnico Eagle 350Koz
    Brucejack British Columbia Pretium 348Koz
    Porcupine Ontario Newmont 319Koz
    Meliadine Nunavut Agnico Eagle 312Koz
    Rainy River Ontario New Gold 229Koz
    Hemlo Ontario Barrick Gold 223Koz
    Meadowbank Nunavut Agnico Eagle 209Koz
    Macassa Ontario Kirkland Lake 183Koz

    Source: Kitco

    Ontario and Québec are the powerhouse provinces of Canadian gold production, hosting 30 mines between the two provinces.

    A Nation Built for Gold Mining

    Canada’s politically secure nature and established permitting process has resulted in five of the 10 largest gold mining companies having projects in Canada. Three Canadian provinces (Saskatchewan, Québec, and Newfoundland & Labrador) are among the world’s 10 most attractive mining investment jurisdictions according to the Fraser Institute’s 2020 survey of mining companies.

    Beyond the legal and permitting strengths of the nation, Canada’s extensive network of capital markets has enabled the Canadian companies to dominate the world’s gold mining industry. With Agnico Eagle and Kirkland Lake’s upcoming merger, three of the world’s top five gold mining companies will be headquartered in Canada.

    The Canadian equity markets are a key driver of the world’s gold exploration and development funding, with the TSX having raised $7.5 billion in mining equity capital in 2020. Gold still remains the major driver of these money flows, with gold mining companies making up more than half of Canada’s mining exploration budget.

    How Gold Mining Gives Back to Canada

    Ever since the first discoveries of gold across Canada in the 1800s, the development and production of gold mines has been the foundation for many towns and merchants across the nation.

    Today, Canada’s mining industry directly employs more than 392,000 Canadians, with the sector offering the highest average annual industrial rate of pay in the country at $123,000. The industry is also proportionally the largest private sector employer of Indigenous peoples in Canada.

    From the nation’s prolific gold deposits to its network of funding through robust public markets for mining equities, gold mining has grown into one of Canada’s most important strengths. The discovery, development, and production of the precious metal will remain an essential pillar of Canada’s economy.

    The post Showcasing the Strength of Canadian Gold Mining appeared first on Visual Capitalist.



    Net-Zero Emissions: The Steps Companies and Investors Can Consider

    Mon, 18 Oct 2021 19:13:24 +0000

    More companies are declaring net-zero emissions targets, but where can they start? Find out the steps companies and investors can take.

    The post Net-Zero Emissions: The Steps Companies and Investors Can Consider appeared first on Visual Capitalist.


    Net-Zero emissions