Abu Dhabi’s office market continued to strengthen in Q2 2025, as tight supply and rising demand pushed occupancy and rental rates for Grade A spaces to record highs. The city’s strong economic momentum is translating into growing business confidence, strong leasing activity and heightened demand for high-quality office space.
“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,” said Stephen Forbes, head of Abu Dhabi at Savills Middle East.
Key sectors driving occupier activity
In Abu Dhabi’s office market, the Central Business District (CBD) submarket recorded a 42 percent year-on-year increase in rental rates, while Outer CBD areas experienced an 18 percent rise.
Prominent buildings such as City Gate Tower and Abu Dhabi Global Market (ADGM) saw annual rental uplifts of 43 percent and 30 percent, respectively. Within ADGM, rents now range between AED2,800 and AED3,500 per sq m per annum.
Occupier activity in H1 2025 was led by BFSI, consulting, technology and hedge fund sectors, with a growing number of requirements for larger units between 10,000 and 20,000 sq ft.
In Q1 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 percent increase year-on-year, with financial services entities growing by 26 percent. Al Maryah Island’s workforce has also expanded by 17 percent, now exceeding 29,000 employees.
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100,000 sqm of space to be delivered in 2025
New supply remains limited across Abu Dhabi’s office market, with approximately 100,000 sqm of space expected to be delivered in 2025, including projects in Masdar City Square and Yas Place. High pre-leasing activity in these developments signals robust demand. Looking ahead, Abu Dhabi expects an additional 100,000 sqm due by 2027 from key projects like One Maryah Place and Saadiyat Business Park.
With the market’s fundamentals remaining strong, Savills anticipates continued upward pressure on prime rental values for the remainder of 2025.
The strong demand in Abu Dhabi’s office market aligns with major growth across the city’s real estate sector. In the first half of 2025, Abu Dhabi’s real estate sector delivered a standout performance, with total transaction values rising by 39 percent year-on-year to reach AED51.72 billion ($14.08 billion), up from AED37.2 billion in H1 2024, according to the Abu Dhabi Real Estate Center (ADREC).
The number of property transactions also rose by 12 percent, totaling 14,167 deals, driven by robust growth in sales, purchases, and mortgage activity. Sales and purchase transactions alone surged 32 percent in value to AED32.69 billion, recorded across 7,964 transactions.
Meanwhile, mortgage deals registered a substantial 52 percent increase in value, reaching AED19.03 billion through 6,204 transactions. International investor interest remained strong. Foreign direct investment (FDI) transactions reached 890, with a 3.3 percent rise in total value to AED3.38 billion.
