Abu Dhabi’s (ADGM) office property market is experiencing an unprecedented surge, driven by record-breaking demand for premium spaces, a tight supply pipeline, and growing interest from global enterprises. According to Savills’ Q2 2025 Market in Minutes report, the capital is now a top-tier commercial hub attracting multinational companies and regional headquarters across key sectors.
Key Takeaways:
- Rental rates in prime zones up to AED 3,500/SQM/year
- ADGM expansion added 500,000 SQM of commercial space
- 43% rise in licensed firms operating within ADGM
- Pre-leasing activity strong across all upcoming developments
- Non-oil economy now contributes 56%+ to GDP
- Investor appetite rising across all residential segments
ADGM and CBD Lead the Growth
The Central Business District (CBD) saw a dramatic 42% year-on-year increase in rental rates during Q2 2025. This sharp rise is largely due to near full occupancy in landmark buildings and intensified demand for Grade A office spaces. In outer CBD areas, rental growth remained strong at 18% over the same period.
Iconic developments such as City Gate Tower and Abu Dhabi Global Market (ADGM) reported annual rental increases of 43% and 30%, respectively. Within ADGM, rental prices now range from AED 2,800 to AED 3,500 per square metre annually, reinforcing its reputation as a premium financial free zone and a preferred destination for global firms.
ADGM Expands to Al Reem Island
One of the most significant developments of 2025 has been ADGM’s jurisdictional expansion into Al Reem Island, adding 500,000 square metres of commercial space. This move not only broadened the city’s financial landscape but also sparked a 43% year-on-year increase in licensed firms operating within ADGM, reaching 2,781 by the end of Q1.
The financial services sector, in particular, recorded a 26% growth, reflecting Abu Dhabi’s strategic position as a financial powerhouse in the region. With this expansion, workforce numbers on Al Maryah Island exceeded 29,000 employees — a 17% jump from the previous year.
Strong Demand from Key Sectors
Leasing momentum is particularly strong among firms in banking, financial services, insurance (BFSI), consulting, technology, and hedge funds. The trend toward larger office requirements is becoming increasingly evident, with growing demand for units ranging from 10,000 to 20,000 square feet.
Stephen Forbes, Head of Abu Dhabi at Savills Middle East, commented:
“Abu Dhabi continues to attract a diverse mix of regional and international occupiers. The expansion of ADGM into Al Reem Island has further elevated the city’s appeal. We’re seeing a clear shift toward larger, high-quality spaces.”
Limited Supply, High Pre-Leasing
Despite this robust demand, new supply remains constrained. Only 100,000 square metres of new office stock is expected in 2025, primarily from projects such as Masdar City Square and Yas Place—both of which are already experiencing significant pre-leasing activity. An additional 100,000 sqm is anticipated by 2027 from flagship developments like One Maryah Place and Saadiyat Business Park.
This limited pipeline is expected to maintain upward pressure on rental rates, especially in prime zones.
Abu Dhabi’s Investment Appeal Strengthens
According to dubizzle’s H1 2025 Abu Dhabi Property Sales Market report, the capital is emerging as one of the most attractive real estate investment destinations in the region. This appeal spans across affordable, mid-tier, and luxury segments, driven by increasing transaction values and strong investor sentiment.
The launch of digital initiatives like Madhmoun, which enhances transparency and facilitates smoother transactions, along with landmark attractions like Disneyland on Yas Island, have further elevated investor confidence. Large-scale infrastructure projects continue to improve connectivity, positioning Abu Dhabi as a compelling alternative to other congested Gulf markets.
Economic Growth Powers Commercial Real Estate
Abu Dhabi’s commercial real estate surge reflects broader macroeconomic success. In Q1 2025, the emirate’s non-oil economy grew by 6.1% year-on-year, now contributing over 56% of total GDP. This shift aligns with Vision 2030, the government’s strategic plan to diversify the economy and reduce dependence on hydrocarbons.
As Abu Dhabi positions itself as a global business capital, its office market is expected to grow in strength and value—fueled by global interest, supportive regulation, and strategic development.
Conclusion
Abu Dhabi’s office property market is booming—with soaring demand, limited supply, and a wave of global firms moving in. From financial services to tech giants, the city’s premium office zones are becoming the go-to location for ambitious businesses. As the emirate continues its transformation under Vision 2030, the outlook for the commercial real estate sector remains exceptionally strong.
