Vancouver in Canada has been identified by Swiss bank UBS as the global financial center with the riskiest housing bubble.

The Global Real Estate Bubble Index, released on Tuesday by UBS, looks at the state of the property markets in selected cities around the world and ranks them according to the risk of "bubble" status.

It found that house prices within its bubble risk zone have increased by almost 50 percent since 2011.

UBS said Vancouver prices were unaffected by the financial crisis in 2008 and continue to rise despite weakening commodity prices.

"Over the last two years, the housing market has gone into overdrive due to strong demand for local properties among foreign investors and a loose monetary policy," the report said.

"Currently, house prices in Vancouver seem clearly out of step with economic fundamentals, and are in bubble risk territory."

Hot on the heels of Vancouver are London and the Swedish capital, Stockholm. The report stated that, with the exception of Milan, low interest rates in the euro zone have pushed all the European cities reviewed into bubble territory.

"The low-interest phase in the growth engines of Europe has contributed to overheating of markets for urban residential properties in recent years," it added.

"As a result, prices in London, Stockholm, Munich and Zurich have reached new record levels after adjustment for inflation."