Abu Dhabi office market displays strength amid record occupancy and rental growth, reports Savills
The emirate's non-oil economy grew by 6.1% year-on-year in Q1 2025, now contributing over 56% of Abu Dhabi's total GDP, a testament to the government's ongoing diversification efforts. This economic momentum is translating into growing business confidence, strong leasing activity, and heightened demand for high-quality office space.
The Central Business District (CBD) submarket recorded a 42% year-on-year increase in rental rates, while Outer CBD areas experienced an 18% rise. Prominent buildings such as City Gate Tower and Abu Dhabi Global Market (ADGM) saw annual rental uplifts of 43% and 30%, respectively. Within ADGM, rents now range between AED 2,800 and AED 3,500 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.
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 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% increase year-on-year, with financial services entities growing by 26%. Al Maryah Island's workforce has also expanded by 17%, now exceeding 29,000 employees.
New supply remains limited, 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, an additional 100,000 sqm is scheduled for delivery 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.
For further insights and detailed analysis, download the full Abu Dhabi Office Market in Minutes Q2 2025 report from here.
About Savills Middle East:
Savills plc is a global real estate services provider listed on the London Stock Exchange. With a presence in the Middle East for over 40 years, Savills offers an extensive range of specialist advisory, management and transactional services across the United Arab Emirates, Oman, Bahrain, Egypt, and Saudi Arabia. Expertise includes property management, residential and commercial agency services, property and business assets valuation, and investment and development advisory. Originally founded in the UK in 1855, Savills has an international network of over 700 offices and associates employing over 40,000 people across the Americas, UK, Europe, Asia Pacific, Africa, and the Middle East.
For further information, please contact:
Savills press office:
siddhi.sainani@savills.me
sahrish.munir@savills.me
www.savills.me
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