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Dubai’s property market faces mounting pressure after a rapid surge in prices from 2022 to early 2025 and warnings of a looming correction driven by an estimated 210,000 new housing units entering the market. This sharp increase in supply comes despite the city’s relatively small population of four million and widespread under-occupied residential towers, where many buildings hold occupancy rates as low as 30 to 40 percent. Analysts caution that mid-market apartment developments are especially vulnerable, with some at risk of becoming stalled or sparsely populated like earlier overambitious projects. The city’s heavy reliance on construction and real estate for a significant share of its GDP leaves it exposed during global or regional downturns, echoing the 2008 crash that led to halted projects and a dramatic outflow of residents. Geopolitical tensions in the Gulf and declining oil prices add further uncertainty, potentially shaking investor confidence and straining economic stability. While luxury villas and waterfront homes continue attracting wealthy buyers and generating record transactions, experts note that only select premium segments appear resilient. Forecasts suggest residential prices could fall by up to 15 percent in certain areas, with softening rental yields signaling broader stress. As the market grapples with oversupply, economic risks and historical volatility, caution remains essential for prospective investors.