Saxo Bank’s Chief Economist Steen Jakobsen is bearish when it comes to the outlook for housing markets. He believes it could become one of the worst performing assets in 2015.

The extremely low interest rates have made housing prices in some markets soar as much as 40% during 2014. Steen says this is out of touch with reality, expressing particular concern with developments in local housing markets in Norway, Dubai, Australia and the United Kingdom.

While investing in livable housing is commonly a safe bet, Steen says investors are getting carried away and investing in second, even third homes, which entails much bigger risks.

Here Steen sets out the underlying causes, which may cause the bubble to burst.