Record Occupancy in Abu Dhabi Office Market Q2 2025
Abu Dhabi’s office sector surged in Q2 2025, with Grade A occupancy rates hitting record highs amid constrained supply and rising demand. The market’s momentum reflects a broader economic upswing, as business confidence fuels leasing activity across financial services, consulting, and tech.
The Abu Dhabi Office Market Q2 2025 saw a sharp rise in rental values, particularly in the Central Business District (CBD), where rates jumped 42% year-on-year. Outer CBD areas followed with an 18% increase, signaling widespread demand for quality space.
ADGM Expansion Adds 500,000 sqm, Boosts Leasing Activity
The jurisdictional expansion of Abu Dhabi Global Market (ADGM) to Al Reem Island added nearly 500,000 sqm of new office space in Q1 2025. By the end of Q2, ADGM hosted 2,781 operational firms, up 43% year-on-year, with financial services entities alone growing 26%.
This influx of global firms has shifted demand toward larger units, typically ranging between 10,000 and 20,000 sq ft, as occupiers seek scalable, high-quality environments. Within ADGM, rental rates now range from AED2,800 to AED3,500 per sqm per annum, with City Gate Tower and ADGM buildings seeing annual uplifts of 43% and 30%, respectively.
Limited New Supply: Only 100,000 sqm Expected in 2025
Despite strong demand, new office supply remains tight, with just 100,000 sqm slated for delivery in 2025. Key developments include Masdar City Square and Yas Place, both experiencing high pre-leasing activity.
Looking ahead, an additional 100,000 sqm is expected by 2027 from landmark projects such as One Maryah Place and Saadiyat Business Park, but the current shortfall is already placing upward pressure on prime rents.
Sector Breakdown: BFSI, Tech, and Consulting Lead Demand
The Abu Dhabi Office Market Q2 2025 was dominated by occupiers from banking, financial services, insurance (BFSI), consulting, and technology. Hedge funds also emerged as active participants, reflecting Abu Dhabi’s growing appeal as a global commercial hub.
Al Maryah Island’s workforce grew 17%, now exceeding 29,000 employees, further reinforcing the need for scalable office infrastructure. The demand trend is not just about space—it’s about quality, location, and long-term viability.
Real Estate Transactions Hit AED51.72B in H1 2025
The strength of the office market aligns with broader real estate performance. In H1 2025, Abu Dhabi recorded AED51.72 billion in total property transactions, up 39% year-on-year. Sales and purchase deals surged 32% in value, while mortgage activity rose 52%, reaching AED19.03 billion.
International investor interest remained robust, with 890 FDI transactions totaling AED3.38 billion, underscoring Abu Dhabi’s rising global stature and the “safety premium” driving real estate investment.
Outlook: Continued Rental Growth Through 2025
With limited supply and sustained demand, the Abu Dhabi Office Market Q2 2025 sets the tone for continued rental growth. Savills projects further upward pressure on prime rents through year-end, especially in Grade A assets.
As Abu Dhabi cements its position as a regional business magnet, occupiers will need to act fast to secure space in a market where availability is shrinking and competition is intensifying.
