German property experts are citing the bursting property bubbles in Europe and the US as one of the reasons that German property prices have grown in popularity since 2008, with new price bubbles inflating in Germany’s seven biggest cities.

The cost of new apartments in these cities – led by Hamburg, Berlin, Munich and Cologne – jumped 9% last year, according to a Bundesbank report.

“Experiences in other countries show that particularly an environment of low interest and high liquidity can lead to exaggerations on the property market,” wrote Bundesbank board member Andreas Dombret. “This could bring with it considerable dangers to financial stability. The price rise seems to have continued in the first half of 2012, in particularly in the seven large cities.”

The Bundesbank warning follows data from leading property website Immobilienscout, which showed a significant price rise since 2007 in inner-city Hamburg (42%), Berlin (35%) and Munich (37%). In the same period, average countrywide German prices rose 12%.