A property bubble is a speculative bubble Speculative bubble An economic, financial or speculative bubble is formed when the level of trading-prices on a market (financial assets market, currency-exchange market, property market, raw materials market, etc.) settles well above the intrinsic (or fundamental) financial value of the goods or assets being exchanged. In such a situation, prices diverge from the usual economic valuation under the influence of buyers’ beliefs. on the entire property market. It is characterized by a sharp rise in the prices of real estate; this entails a significant and persistent gap between the price of property and the variation of fundamental economic determinants such as salaries and rental value.