EU watchdog: property valuations are too high

The housing and commercial property markets are demonstrating signs of being overvalued in Europe, according to the European Union’s financial watchdog.

Investors are increasingly chasing alternative riskier assets such as property in the hunt for more lucrative returns, the European Systemic Risk Board said in its annual report.

“High investor demand and the search for higher yields, which have been a major source of the commercial real estate price increase, particularly in prime markets, have potentially made investors vulnerable to a repricing of risk premia,” it warned.

It said that most countries