With Grade A office rentals hitting all-time highs in the second quarter of 2025, Abu Dhabi’s commercial real estate market is exhibiting incredible energy.
According to the most recent “Market in Minutes” report from real estate firm Savills, the capital’s rental growth and occupancy levels are being driven by rising demand and a shortage of new supply.
Rents in the Central Business District (CBD) increased by 42% year over year, while those in the Outer CBD witnessed an 18% increase. Rental increases of 43% and 30%, respectively, were observed at notable developments including City Gate Tower and Abu Dhabi Global Market (ADGM). The current annual range of ADGM rents is AED 2,800 to AED 3,500 per square meter.
Economic growth fuels office demand
Abu Dhabi’s overall economic prosperity is the driving force behind the real estate boom. As the government’s efforts to diversify pay off, the non-oil economy of the emirate expanded by 6.1% in the first quarter of 2025 and now makes up more than 56% of the overall GDP.
Stronger company confidence, more leasing activity, and a move toward bigger, better office premises are all results of this expansion.
“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.”
ADGM expands, tenant activity rises
With the addition of about 500,000 square meters of office space, ADGM finished its jurisdictional extension to Al Reem Island in Q1 2025. ADGM now has 2,781 operating enterprises, up 43% year over year, with a 26% increase in financial services entities. Al Maryah Island’s workforce increased by 17% as well, reaching over 29,000 workers.
The sectors of banking, financial services, consulting, technology, and hedge funds accounted for the majority of occupier activity in the first half of 2025; many were looking for 10,000–20,000 square feet of space.
