Abu Dhabi office rents soar to record highs as demand outpaces supply

Abu Dhabi: Abu Dhabi’s office property market is showing remarkable strength, with Grade A office rents reaching record highs in the second quarter of 2025.

Rising demand and limited new supply are driving both rental growth and occupancy levels across the capital, according to real estate advisor Savills’ latest “Market in Minutes” report.

The Central Business District (CBD) saw the steepest climb, with rents rising by 42% year-on-year, while Outer CBD areas posted an 18% increase. Prominent developments such as City Gate Tower and Abu Dhabi Global Market (ADGM) saw rental hikes of 43% and 30%, respectively. ADGM rents now range between AED 2,800 and AED 3,500 per square metre per year.

Behind the real estate boom is Abu Dhabi’s broader economic success. The emirate’s non-oil economy grew by 6.1% in the first quarter of 2025, now accounting for over 56% of total GDP, as government diversification efforts bear fruit.

That growth is translating into stronger business confidence, increased leasing activity, and a shift toward larger, high-quality office spaces.

“Abu Dhabi continues to attract a diverse mix of regional and international occupiers,” said Stephen Forbes, Head of Abu Dhabi at Savills Middle East. “With more global firms setting up in the capital, especially following the ADGM expansion, we’re seeing increased demand from financial services, tech, and consulting firms.”

In Q1 2025, ADGM completed its jurisdictional expansion to Al Reem Island, adding nearly 500,000 sq m of office space. The number of operational firms within ADGM grew by 43% year-on-year to 2,781, with a 26% rise in financial services entities. The workforce on Al Maryah Island also grew by 17%, now exceeding 29,000 employees.

Occupier activity during the first half of 2025 was led by banking, financial services, consulting, technology, and hedge fund sectors — many seeking 10,000 to 20,000 sq ft units.

Only 100,000 sq m of new office space is expected to be delivered in 2025, including key projects in Masdar City Square and Yas Place, both of which are already seeing high pre-leasing levels. A further 100,000 sq m is planned by 2027, with notable developments like One Maryah Place and Saadiyat Business Park in the pipeline.

With demand outpacing supply, Savills anticipates continued upward pressure on prime office rents throughout the rest of 2025 — a trend that may benefit landlords and developers but challenge companies looking to expand or relocate in the capital.