Abu Dhabi’s office market recorded sharp rental and occupancy growth in the second quarter of 2025 as demand for Grade A space outpaced supply.
According to Savills’ latest Market in Minutes report, the emirate’s non-oil economy grew by 6.1 per cent year-on-year in the first quarter of 2025, contributing more than 56 per cent of total GDP.
Abu Dhabi office market booms
The Central Business District (CBD) saw a 42 per cent year-on-year increase in rental rates, while Outer CBD rents rose 18 per cent. City Gate Tower and Abu Dhabi Global Market (ADGM) recorded annual rental uplifts of 43 per cent and 30 per cent respectively, with ADGM rents ranging from AED 2,800 to AED 3,500 per square metre per year.
Stephen Forbes, Head of Abu Dhabi at Savills Middle East, said: “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, ADGM completed its jurisdictional expansion to Al Reem Island, adding nearly 500,000 sq m of office space. By the end of that quarter, the total number of operational firms within ADGM rose to 2,781, a 43 per cent increase from a year earlier, while financial services entities grew by 26 per cent. The workforce on Al Maryah Island expanded by 17 per cent to over 29,000 employees.
Approximately 100,000 sq m of new office space is expected to be delivered this year, including projects in Masdar City Square and Yas Place. Another 100,000 sq m is planned by 2027 from projects such as One Maryah Place and Saadiyat Business Park.
Savills expects continued upward pressure on prime rents through the remainder of 2025.
