**MODEST NEW SUPPLY AND RISING RENTS FUEL GROWTH**
Just 90,000 sqm, barely 2% of stock was handed over in 2025 and
another 73,500 sqm is expected to be completed in 2026, limiting any
upward drift in vacancy. Q4 2025 saw the completion of The Link in
Masdar City and Masdar City Square already pre-let for Q1 2026. Other
prominent handovers expected in 2026 are M-19D and Souk Al Jubail.
Although Mubadala and Aldar have announced an AED 60+ billion
ADGM expansion, new supply is unlikely to materialise until after 2030,
suggesting continued near-term tightness.
**DEMAND ANCHORED BY FINANCE AND ENERGY SECTORS**
The Abu Dhabi office market continues to demonstrate strong
momentum, supported by robust demand, tightening vacancies, and
broad-based sectoral expansion. By the end of Q4 2025, Prime and
Grade A office spaces reached 98.5% occupancy, up from 94% in Q4
2024, reflecting the sustained scarcity of institutional-grade supply.
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. Public sector entities, business
services firms, and flexible space operators are also driving sustained
demand as they expand operations and upgrade to newer, higher
specification stock.
**RENTS AND OCCUPANCY LEVELS 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
financial sectors. While diversification into emerging office hubs such
as Masdar City and Yas Island may gradually ease pressure on core
locations, Grade A availability within prime submarkets remains
constrained, sustaining competition for high-quality space. We have
also seen a wider adoption of flex space options as the market tightens
This dynamic is unlikely to shift meaningfully until 2029 to 2030, when
the majority of the announced Grade A pipeline is scheduled for
delivery.