MARKETBEAT- Office Q4 2024, Abu Dhabi, UAE (image)

MARKETBEAT- Office Q4 2024, Abu Dhabi, UAE

Abu Dhabi’s office market continues to experience robust growth, marked by a significant increase in occupancy levels. Demand is primarily driven by the banking, finance, and hydrocarbons sectors, maintaining prime and Grade A occupancy at 95%, supported by stable rental rates and strong competition for Grade A spaces.

SUPPLY: ROBUST OFFICE SUPPLY PIPELINE IN ABU DHABI THROUGH 2027

In 2024, Abu Dhabi added 679,000 sq. ft. of new office stock to the market, including notable developments such as Al Maryah Tower in ADGM, the Seha Building in Danet, and the FAB building in Capital Center. Looking ahead, 2025 is projected to deliver approximately 1.13 million sq. ft. of new supply, primarily in Al Reem Island and Masdar City. While 2026 is expected to see a more modest increase of 430,000 sq. ft., 2027 is anticipated to witness the highest influx of supply in recent years, with around 1.76 million sq. ft. scheduled for completion

DEMAND: RESILIENT DEMAND AND KEY TRENDS IN ABU DHABI'S Q4 2024 OFFICE MARKET

Abu Dhabi's office market demonstrated resilience in Q4 2024, with overall vacancy rate decreasing by 4% year-on-year. Abu Dhabi Global Market (ADGM) continues to dominate as the most sought-after location for office space, supported by high demand in Al Maryah Island and Al Raha, which command the highest prices per square foot. Office spaces ranging from 4,000 to 6,000 sq. ft. remained popular, followed closely by spaces in the 2,000 to 4,000 sq. ft. range. Sector-specific demand, Banking, and Finance led accounting for 20% of the market, followed by Oil & Gas at 17%, highlighting the continued strength of key industries in the capital.

PRICING: STABLE LEASING RATES AMID HIGH DEMAND

Abu Dhabi's office leasing rates remained stable quarter-on-quarter, while city-wide average asking rents in Q4 2024 increased by 7% year-on- year. Prime office buildings command annual rental prices between AED 180 and AED 260 per sq. ft., with Grade A buildings ranging from AED 93 to AED 177 per sq. ft. and Grade B and C buildings priced at AED 65 to AED 84 and AED 46 to AED 65 per sq. ft., respectively. Occupancy rates remain high, with prime offices at 95%, Grade A and B between 90% and 95%, and Grade C between 70% and 89%. Supply for Prime and Grade A office spaces remains limited at 10% and 20%, respectively.

Related Marketbeats

MARKETBEAT- Office Q2 2025, Dubai, UAE (image)
MarketBeats • UAE

MARKETBEAT- Office Q2 2025, Dubai, UAE

After several years of constrained delivery, Dubai’s office market is on the cusp of a supply rebound.
Prathyusha Gurrapu • 2025-07-14
MARKETBEAT- Residential Q2 2025, Dubai, UAE (image)
MarketBeats • UAE

MARKETBEAT- Residential Q2 2025, Dubai, UAE

Dubai’s residential market is in the midst of a strong supply cycle, with 2025 set to be a pivotal year.
Prathyusha Gurrapu • 2025-07-14
MARKETBEAT- Office Q2 2025, Abu Dhabi, UAE (image)
MarketBeats • UAE

MARKETBEAT- Office Q2 2025, Abu Dhabi, UAE

Abu Dhabi’s office market continues to face a pronounced supply-demand imbalance, particularly for Grade A space.
Prathyusha Gurrapu • 2025-07-14
YOUR PRIVACY MATTERS TO US

With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.

MORE OPTIONS