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.
