Abu Dhabi’s office market continues to face a pronounced supply-demand imbalance, particularly for Grade A space.
LIMITED SUPPLY KEEPS GRADE A OFFICE SPACE IN HIGH DEMAND
Abu Dhabi’s office market continues to face a pronounced supply-demand imbalance, particularly for Grade A space. Office occupancy across Abu Dhabi remains strong at 90%, with Grade A assets outperforming at 97%. However, the current pipeline remains constrained, with few new completions and strong pre-leasing activity further limiting available stock. Year-to-date, the only notable handover has been Yas Place on Yas Island. Looking ahead, around 830,000 sqftof new supply is expected in H2 2025, primarily concentrated in Masdar City, including Masdar City Square and The Link, alongside the SAAS Business Tower. However, a significant portion of this space has already been pre-committed, offering little immediate relief to the market. As a result, more occupiers are turning to flexible workspace solutions to secure high-quality space with shorter lead times in an increasingly tight market.
DEMAND ANCHORED BY FINANCE AND ENERGY SECTORS
Demand continues to be led by the financial sector -particularly global and regional institutions expanding within ADGM, which maintains the highest occupancy levels in the capital. Oil and gas occupiers, especially those linked to ADNOC, are also driving sustained demand as they expand operations and upgrade into newer, higher-spec stock.
RENTS AND OCCUPANCY LEVELS SET TO REMAIN ELEVATED
In the near term, Abu Dhabi’s office market is expected to remain landlord-favourable, supported by limited new supply, strong institutional demand, and continued expansion across the energy and finance sectors. While diversification into emerging office hubs such as Masdar City and Yas Island may gradually alleviate pressure on central locations, Grade A availability in core submarkets remains tight, ensuring sustained competition for high-quality space.
