Impact of COVID-19 on Dubai Real Estate Purchases

Published on and written by Cyril Jarnias

With the impact of COVID-19, Dubai’s real estate market has undergone profound transformations reflecting a radical shift in buyer preferences. Successive lockdowns have heightened the need for more spacious and multifunctional spaces, and the quest for homes better suited to renewed lifestyles has become a priority for many investors.

Today, buyers are seeking properties that offer more flexibility and comfort, incorporating home office and recreational spaces, which has redefined the contours of Dubai’s real estate market in response to this new post-pandemic reality.

Impact of the Pandemic on Real Estate Preferences in Dubai

Since the beginning of the COVID-19 pandemic, Dubai’s real estate market has undergone a profound transformation, driven by evolving buyer preferences and a remarkable surge in transactions and prices.

Key Trends Observed:

  • Strong growth in the residential sector: In 2024, the average value of residential properties in Dubai increased by 27.5%. In February 2025, sales jumped by 40%, reaching AED 51.1 billion.
  • Stability and attractiveness: Prices stabilized between 2023 and 2024 while maintaining high demand for residential housing. Over 142,000 new units were launched in 2024.
  • Focus on luxury: Interest in high-end residential properties continues to increase.

Evolution of Buyer Preferences Since the Pandemic:

  • Search for private outdoor spaces (spacious balconies, terraces, or gardens)
  • Larger homes, adapted for remote work
  • Proximity to essential amenities and healthcare infrastructure
  • Increased importance placed on environmental sustainability

Table – Typical Evolution of Sought-After Criteria:

Criterion Before COVID Since COVID
Outdoor spaces Low priority Highly sought after
Living space Average Larger
Remote work/office spaces Rarely prioritized Frequently requested
Proximity to amenities/healthcare Moderately important Very important

Popular Neighborhoods & Types of Properties Sought:

  • Focus on neighborhoods offering green surroundings (parks) or easy access to beaches
  • Marked demand for single-family homes with private gardens or apartments with large terraces
  • Notable increase in occupancy rates in family-friendly residential areas

Additional Factors Influencing These Choices:

  • Local political and economic stability
  • Technological developments facilitating remote buying/selling
  • Government policies encouraging foreign investment
  • Growing search for sustainable/eco-friendly housing

The pandemic has therefore amplified the desire for comfortable and flexible personal space as well as the practical necessity of being close to essential medical services.

Industry professionals also note that this new structural reality continues to durably shape the landscape of the local real estate market.

Good to know:

Since the beginning of the COVID-19 pandemic, Dubai’s real estate market has seen a notable shift in buyer preferences, with increased demand for homes including outdoor spaces like balconies or gardens, and more spacious interiors for remote work. According to a recent study, 65% of new buyers now seek properties offering these features. Consequently, neighborhoods providing these advantages are seeing their popularity rise, particularly areas like Arabian Ranches and Dubai Hills Estate. This change is also influenced by the desire to be close to essential amenities and healthcare infrastructure, which has boosted demand for villas and townhouses in these locations. Data shows a 30% increase in villa sales compared to apartments, reflecting this shift toward living spaces better suited to the new realities imposed by the pandemic.

The New Post-COVID Buyer Criteria

The priorities of real estate buyers in Dubai have undergone a notable transformation since the pandemic, reflecting new needs and expectations.

New Post-COVID Criteria:

  • Increased importance of interior space: Buyers now seek more spacious homes to accommodate remote work and extended family life at home. Apartments with dedicated offices, multifunctional rooms, or large living rooms have become highly sought after.
  • Value placed on outdoor spaces: Wide balconies, private terraces, and gardens are in high demand, as they allow enjoyment of a private outdoor setting while staying at home.
  • Growing demand for villas and single-family homes offering more privacy compared to traditional urban apartments.
  • Marked preference for residences incorporating advanced technological solutions (home automation, remote control of equipment) facilitating management of the connected home.
  • Strengthened interest in projects offering:
  • Shared green spaces
  • Sports facilities (modern gyms)
  • Wellness areas (spas, pools, zen zones)
  • Enhanced security

Testimonials Collected from Real Estate Agents:

“Since COVID, our clients systematically ask if there’s a private outdoor space or a room that could be converted into an office. Many now prefer Jumeirah Village Circle or Arabian Ranches over the ultra-dense city center.”

“Buyers want an environment where it’s possible to live healthily without constantly relying on public infrastructure.”

Recent Statistics Illustrating These Trends:

Preferred CriterionPost-Pandemic Evolution
Average area sought+18%
Demand for villas/houses+23%
Properties with garden/balcony+32%
Inquiries about wellness facilities+21%

Financial Flexibility and Increased Accessibility:

  • The rapid increase in rents (+17% for apartments; +23% for villas) is pushing more residents toward buying rather than renting to ensure their financial stability in a dynamic market.
  • Attractive mortgage rates as well as the expansion of foreign ownership rights make acquisition accessible to a new generation of buyers primarily aged between 30 and 45.

Change in Favorite Areas:

Densely populated neighborhoods like Downtown Dubai are seeing their attractiveness slightly diminish in favor of sectors such as Jumeirah Village Circle (JVC), Arabian Ranches, or Dubai Hills Estate which offer more:

  • Privacy,
  • Security,
  • Green spaces,
  • And a superior quality of life.

In summary: the typical profile of the new real estate buyer in Dubai now prioritizes generous private space, advanced digital connectivity, and a residential environment promoting daily well-being—all supported by a facilitating financial context.

Good to know:

Since the pandemic, real estate buyers in Dubai have placed increased importance on interior and exterior space to meet the needs of living and working from home. Properties with advanced technologies, such as home automation control or wellness equipment, as well as green spaces, are generating growing interest. According to real estate agents, a migration toward less dense areas offering more privacy and security is observed. Recent statistics show that over 60% of buyers now prefer homes with gardens or terraces. Financial flexibility is also gaining importance, with increased demand for flexible payment plans and properties offering a better quality of life.

The Rise of Remote Work and Its Influence on Housing

The rise of remote work in post-COVID Dubai has profoundly transformed real estate buyer preferences. Homes offering dedicated office spaces or flexibility to balance professional and personal life are now in high demand.

Main Changes in Purchase Preferences:

  • Increased search for villas, townhouses, and spacious apartments including a closed office or multipurpose room.
  • Marked preference for modular interior configurations to clearly separate work and relaxation.
  • Notable increase in demand for homes in suburban areas (Arabian Ranches, The Springs, Mudon), which offer more indoor and outdoor space compared to traditional downtown apartments.

Emerging Housing Trends:

  • Buyers place more importance on the presence of large balconies, private gardens, or terraces usable as relaxation areas between work sessions.
  • Health and well-being become priorities: shared sports facilities, collective green spaces, easy access to natural light, and improved filtered air systems are among the essential criteria.
Sought-After CriteriaBefore COVIDPost-COVID – Strong Trend
Dedicated office/remote work areaRareHighly demanded
Living spaceModerateLarger
Private outdoor spacesOptionalPreferred
Wellness/recreational facilitiesAccessoryEssential

Notable Examples of Popular Neighborhoods:

  • Arabian Ranches
  • The Springs
  • Mudon

These communities stand out for their spacious homes with additional rooms easily convertible into offices as well as their collective facilities (pools, fitness centers) adapted to new hybrid lifestyles.

Statistical Data:

Although precise figures vary according to publicly available recent sources, several sector analyses indicate a significant increase (+20 to +30%) in searches for properties with office space since 2021. Demand for family villas has also experienced growth exceeding 40% in some highly sought-after suburban neighborhoods after the pandemic.

Adaptation of Real Estate Developers:

To respond to this new reality:

  • Standard floor plans now systematically include a space convertible into an office.
  • Some projects integrate common rooms equipped for coworking within high-end residences themselves.
  • Focus on technological integration (smart home features), digitized building access (touchless systems), and increased offering of shared green spaces.

The rapid adaptation of Dubai’s real estate market illustrates how remote work is no longer perceived as an exception but as a central criterion guiding local architectural and residential evolution.

Good to know:

Since the pandemic, the rise of remote work in Dubai has profoundly modified real estate preferences, with increased demand for homes equipped with dedicated office spaces and flexible configurations, allowing for a better balance between professional and personal life. The search for larger outdoor spaces and recreational facilities has also intensified, reflecting a heightened need for pleasant and versatile living environments. Neighborhoods like Dubai Hills Estate and Town Square have gained popularity due to their offerings tailored to remote workers. Moreover, developers have adjusted their projects to include more modular spaces and integrated coworking facilities within residential complexes. A recent study indicates that nearly 60% of Dubai buyers now seek homes with home offices, highlighting the evolution of post-COVID priorities.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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