Average apartment rents jumped 27 percent to $25,912 (AED 95,168). The average price of apartments rose nine percent and villas 12.8 percent in that period.

“We think the prices will stabilize throughout the year,” Tatjana Lescova at S&P Global told media. “[But] we have not reached the peak level with regards to prices.”

She added that Dubai is becoming more “visible” globally, with a greater number of people moving to the Gulf city.

“We think Dubai will continue to attract new residents and that demand for residential real estate will continue,” S&P said in a statement. “[The] demand will be sustained by economic activity, population growth, and relatively affordable residential prices relative to other global hubs as the emirate continues to attract new residents.”

Since the war in Ukraine, Russians have flocked to Dubai to snap up property, further driving prices upward.

“For regions affected by conflict, it is a safe haven,” said Lescova.

Prices and transactions soared amid a strong economic recovery from the COVID-19 pandemic and the introduction of long-stay visas, property agents Allsopp and Allsopp said in a January report.

This led to a record-breaking $72.2 billion (AED 265 billion) in real estate sales in 2022 – an all-time high and a 61 percent year-on-year increase in transactions.

The sales value of transactions increased by a staggering 77 percent year-on-year.The areas which recorded the highest sales transactions for villas and townhouses in 2022 were Dubai South, Damac Hills, and Villanova, while the top three areas for apartment sales were Business Bay, Jumeriah Village Circle and Downtown Dubai.