**LIMITED SUPPLY AND STRONG DEMAND KEEP THE MARKET TIGHT**
While only a few office developments were delivered YTD 2025, Abu
Dhabi continues to experience a pronounced supply and demand
imbalance. Q3 2025 saw the completion of the SAAS Business Tower and
the office component of the mixed-use Radiant Square development,
followed by The Link in Masdar City (pre-let) at the start of Q4. Moderate
new supply is expected in 2026, led by Masdar City Square, which is
largely pre-let, and the M-19D project. The market is anticipated to remain
undersupplied until 2028, when prominent completions such as One
Maryah Place and Saadiyat Grove Business Park are expected to be
delivered. Early pre-leasing activity for these future developments
underscores the depth of occupier demand and sustained confidence in
Abu Dhabi’s office market.
**FINANCE, ENERGY, AND INNOVATION FUEL GROWTH**
Demand continues to be led by the banking and finance sector, driven by
global and regional institutions expanding within ADGM, which continues
to maintain near-full occupancy levels. Oil and gas occupiers, particularly
those linked to ADNOC and its ecosystem, remain a major source of
enquiries as firms are expanding into higher grade stock near ADNOC
offices. The public sector and business services also contribute
significantly to activity, reflecting the steady expansion of government-related entities and professional services firms. Meanwhile, technology,
healthcare and life sciences continue to support the diversification of
demand, aligned with Abu Dhabi’s innovation and knowledge-economy
objectives. Collectively, these trends underline a diversified demand
profile.
**LOW VACANCY SUSTAINS UPWARD RENTAL PRESSURE**
Abu Dhabi’s office market is expected to remain landlord-favourable,
supported by a city-wide vacancy of 8.3% and a Grade A vacancy of just
2%. Limited upcoming supply, coupled with strong institutional demand
and continued expansion across the energy and financial sectors, will
sustain upward pressure on prime rents. While emerging hubs such as
Masdar City and Yas Island are set to absorb part of the spillover demand,
Grade A availability in core districts remains extremely tight, driving
competition for high-quality space.