LIMITED SUPPLY EXPECTED TO UNDERPIN MARKET FUNDAMENTALS
Abu Dhabi’s office market remains structurally undersupplied, with no new completions recorded in Q3 2026. Around 48,000 sqm of NLA has been delivered so far this year, and a further 27,000 sqm is expected by year-end, mainly across several buildings in Masdar City. That would bring 2026 completions to c. 75,000 sqm, below the 90,000 sqm delivered in 2025. Most of the remaining 2026 space is already pre-let, reflecting continued occupier demand. Supply is set to tighten further in 2027, when just 36,000 sqm is expected, the lowest annual total in the forecast period. The pipeline is then expected to increase sharply, with c. 364,000 sqm expected between 2028 and 2030. Deliveries are projected to peak at 149,000 sqm in 2029, with large schemes including One Maryah Place contributing. Until that supply arrives, constrained availability should continue to support rental growth and market resilience over the near term.
OFFICE RENTS CONTINUE TO RISE, SUPPORTED BY HIGH OCCUPANCY
Abu Dhabi’s office market continued to record rental growth in Q3 2026, with city-wide average asking rents rising to AED 2,298 per sqm per annum, up 27% YoY and approximately 5% QoQ. While annual growth remains substantial, the slower quarterly increase suggests some moderation in rental momentum following the sharp gains recorded earlier in the year. City-wide occupancy stood at 93.3%, with occupancy in the prime office segment remaining near historic highs at approximately 98%.
Rental pressures remain most pronounced in ADGM on Al Maryah Island, where average asking rents have reached AED 6,250 per sqm, nearly three times the city-wide average, supported by 99% occupancy. Masdar City also recorded 99% occupancy, while the Corniche maintained a strong occupancy rate of 97%. With limited availability in established office districts, occupiers continue to explore alternative locations, particularly Al Reem Island, where average rents are significantly lower than in ADGM, although occupancy remains comparatively lower at 83%.
Looking ahead, the supply pipeline remains limited relative to existing demand. While the moderation in quarterly rental growth may signal a more measured pace of increases, the shortage of available Grade A space is expected to sustain landlords’ negotiating leverage, particularly in prime locations, until meaningful new supply enters the market.
