The Abu Dhabi office market is witnessing unprecedented growth, characterized by exceptional occupancy rates and soaring rental prices. A recent report underscores the robust performance of this market, highlighting how the demand for Grade A office space is outstripping supply. As the emirate’s economy continues to flourish, the Abu Dhabi office market reflects a positive commercial environment, attracting both local and international enterprises.
Recent insights from Savills’ latest Market in Minutes report indicate that Abu Dhabi’s non-oil economy expanded by 6.1 percent year-on-year in Q1 2025, accounting for more than 56 percent of the overall GDP. This economic momentum has significantly contributed to the strengthening of the Abu Dhabi office market.
Abu Dhabi Office Market Sees Significant Growth
The Central Business District (CBD) has experienced a remarkable 42 percent increase in rental rates compared to the previous year, while rental prices in the Outer CBD also climbed 18 percent. Notable buildings such as City Gate Tower and the Abu Dhabi Global Market (ADGM) recorded annual rental hikes of 43 percent and 30 percent, respectively. At ADGM, rents now fall within the range of AED 2,800 to AED 3,500 per square meter per year, emphasizing a demand for premium office space.
Stephen Forbes, Head of Abu Dhabi at Savills Middle East, commented: “Abu Dhabi continues to attract a diverse mix of regional and international occupiers, and the recent expansion of ADGM into Al Reem Island has only amplified that appeal. As more global firms establish a presence in the capital, we’re seeing a clear shift toward larger, high-quality spaces. Demand remains strong, particularly across financial services, consulting, and tech, a sign of growing business confidence and Abu Dhabi’s rising stature as a global commercial hub.”
In the first quarter of 2025, the ADGM successfully finalized its jurisdictional expansion to Al Reem Island, effectively adding nearly 500,000 square meters of office space. By the end of that period, the ADGM had seen its operational firms grow to 2,781, marking a 43 percent surge from the previous year. Additionally, financial services companies increased by 26 percent, contributing to a 17 percent rise in the workforce on Al Maryah Island, which now totals over 29,000 employees.
Looking ahead, the Abu Dhabi office market is set to welcome around 100,000 square meters of new office space this year, with significant projects underway in Masdar City Square and Yas Place. Furthermore, another 100,000 square meters are projected to come online by 2027, including developments like One Maryah Place and Saadiyat Business Park.
Savills anticipates that upward pressure on prime rents will persist for the remainder of 2025, reinforcing the notion that the Abu Dhabi office market continues to strengthen amid rising demand.