As Demand Outpaces Supply, Abu Dhabi Office Rents Soar in 2025
Abu Dhabi’s commercial real estate market is on fire right now.
If you’ve been paying attention, you’ve probably seen the headlines but here’s what’s really happening: office rents are hitting all-time highs, and it’s all being driven by strong demand and a major supply crunch.
Whether you’re a business looking to expand or an investor eyeing the next big move, this matters. Let’s break it down.
What the Numbers Are Telling Us
According to Savills’ latest Market in Minutes report:
- Grade A office rents reached record highs in Q2 2025.
- CBD rents jumped 42% YoY.
- Outer CBD rents rose 18% YoY.
- ADGM and City Gate Tower saw increases of 43% and 30%, respectively.
- Current ADGM rental range: AED 2,800 – AED 3,500/m².
That’s not just growth that’s velocity. It’s clear that demand is rising faster than developers can keep up.
The Demand Drivers Behind the Boom
Abu Dhabi’s Non-Oil Economy Is Thriving
The real story behind the rental spike? Economic diversification.
- In Q1 2025, non oil GDP grew 6.1%.
- The non-oil sector now makes up 56% of the emirate’s total GDP.
- This growth fuels new business setups, especially in tech, finance, and consulting.
Business Confidence Is Back Big Time
Companies aren’t downsizing anymore. They’re scaling up and they want larger, smarter, better-located spaces.
“Abu Dhabi continues to attract a diverse mix of regional and international occupiers,” said Stephen Forbes of Savills. The ADGM expansion, in particular, is pulling in global players.
ADGM’s Expansion = A Game Changer
One of the biggest contributors to this surge is the Abu Dhabi Global Market’s jurisdictional extension to Al Reem Island.
- 500,000 m² of new office space added
- ADGM now hosts 2,781 companies, up 43% YoY
- Financial sector entities grew by 26%
- Al Maryah Island workforce: up to 29,000 employees
If you’re wondering where the demand is coming from, it’s here:
Financial services, tech, consulting, hedge funds, and VC-backed firms many leasing 10,000 to 20,000 sq. ft. of premium space.
Where This Leaves Investors and Tenants
Here’s the thing: this isn’t just a temporary spike.
- Supply remains constrained no quick fixes in sight
- Tenants are signing longer leases
- Grade A properties are nearly fully occupied
- Rents are likely to continue rising into 2026
If you own commercial space in Abu Dhabi: hold tight.
If you’re looking to lease: act fast, or you’ll pay more next quarter.
Final Take: A Market Moving on Confidence, Not Hype
This isn’t a bubble. This is strategic demand fueled by economic fundamentals and the lack of immediate new supply is only intensifying the squeeze.
As demand outpaces supply, Abu Dhabi office rents soar and this may just be the beginning.
Whether you’re an investor, a company planning expansion, or an advisor helping others grow, now’s the time to watch Abu Dhabi’s commercial scene very closely.
