PHOTO: Paris is among four European cities with a property market at bubble risk, according an index released by UBS. Photo: Stocksy

European cities face the greatest risk of a property price bubble, a new analysis shows, but Australians have not escaped the heat despite the downturn.

Munich is the most overvalued housing market in the world, according to a UBS global analysis of 24 major cities, with valuations at an all-time high.

Amsterdam, Frankfurt and Paris were also among the seven cities deemed to be at bubble risk in the UBS Global Real Estate Bubble Index 2019, released this week – as were Toronto, Hong Kong and Vancouver.

“On a global level, economic uncertainty is outweighing the effect of falling interest rates on urban housing demand,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “However, in parts of the Eurozone, low rates have still helped to push real estate valuations into bubble risk territory.”