Dubai apartment sales soared in the fourth quarter of 2022, up 164% year-on-year, with a series of off-plan launches accounting for the growth.

Morgans Realty said real estate sales overall in the emirate increase 15% quarter-on-quarter (QoQ) and 65% year-on-year in Q4. The broker published an analyst’s note which also cited a 2% increase in mortgage activity QoQ despite rising interest rates.

The emirate saw 97,252 real estate transactions valued at AED 265 billion ($72 billion) in 2022, up 59.5% on 2021, the note said. 

Apartment sales accounted for 69% of total transactions during the quarter, with a 6% price per square foot increase QoQ, 18% YoY and were the number of transactions was up 28% QoQ.

Off-plan apartment sales accounted for 58.5% of total apartment sales, Morgan’s International Realty.

Elias Hannoush, managing director, said: “While we remain positive about the stability of the Dubai market and foresee continued expansion, developers and investors will need to carry the lessons of previous market cycles in mind.

“The current expansion of the market cannot continue forever. Large gains are likely over for the foreseeable future, and several months of price stability with small price increases are predicted.”

(Writing by Imogen Lillywhite; editing by Seban Scaria)