Abu Dhabi’s office and industrial property markets are experiencing strong growth, with rental rates rising due to increasing demand, regulatory changes, and active development, according to Savills Middle East.
Savills’ latest Abu Dhabi Commercial Property Market Report states that economic licences on the mainland grew by 16 per cent in 2024, while active licences in non-financial free zones rose by 22 per cent. This growth follows new regulations from the Abu Dhabi Department of Economic Development (ADDED), allowing businesses registered in other emirates and free zones to establish branches in Abu Dhabi without requiring a physical presence in the first year.
The report highlights continued demand for Grade A office space, resulting in high occupancy levels across major buildings. International Tower, Daman House, and Baniyas Tower are fully occupied, while ADGM has reached 97 per cent occupancy. The number of operational entities within ADGM rose to 2,088, including 231 financial firms, marking a 31 per cent rise from H1 2023.
Rental prices for Grade A offices in CBD and Outer CBD submarkets increased by an average of 8 per cent year-on-year in Q4 2024, with individual buildings such as Capital Gate Tower and Addax Tower seeing 14 per cent and 13 per cent growth, respectively. ADGM office rents range between AED2,600 ($708) and AED2,900 ($790) per sq m annually.
Stephen Forbes, Head of Abu Dhabi at Savills Middle East, noted strong occupier demand, particularly in financial services, consulting, and technology sectors. He highlighted how regulatory reforms and infrastructure growth continue to attract interest. The industrial sector also saw rental rates rise by 25 per cent, driven by e-commerce and logistics demand.
Looking ahead, over 100,000 sq m of new office space is expected in 2025, with projects like Masdar City Square and Yas Place seeing strong pre-leasing. The industrial sector remains active, with KEZAD rents rising 38 per cent and major investments, including a AED5bn ($1.36bn) industrial park by Mubadala and Aldar. KEZAD is also developing 250,000 sq m, set for completion by Q4 2025. While upcoming supply may ease some pressure, demand for high-quality facilities remains strong.
