The commercial real estate market in Abu Dhabi is experiencing a notable surge in demand for commercial office space, especially in A-grade buildings, reflecting robust confidence in the emirate’s economic outlook. As businesses continue to expand and seek modern, high-quality spaces, the demand for premium commercial properties is set to shape the future of Abu Dhabi’s skyline. Several existing and off plan A-grade buildings have waitlists as demand increases in line with the reported economic growth of the city by over 3.1% in 2023 and expected to double by the end of this year.
Abu Dhabi Department of Economic Development reported 25,647 new economic licences were issued last year, giving an annual increase of 3.5%. Specifically, to support the growth of its financial sector, the government announced a tenfold expansion of the ADGM financial free zone’s jurisdiction by adding Reem Island, expanding its area to approximately 1,438 hectares. This initiative is currently being rolled out by ADGM with a deadline to acquire new or upgraded licences by 31st December 2024, this movement could see a shift of businesses moving in and out of the district by Q4 of this year, further increasing the commercial office demand both within the ADGM jurisdiction and other A-grade buildings around Abu Dhabi.
According to a report released by Savills earlier this year: The city has more than 90,000 square metres in the pipeline till 2026 from prominent developers across projects like The Link Masdar City, Masdar City Square, and the HB Office Tower from Aldar. Most of these upcoming projects have recorded healthy pre-commitment rates due to the high demand.
Loubna Atbir – Manager of Office Square added: “Leasing activity has surged as businesses return to office environments and expand operations. This uptick is supported by Abu Dhabi’s strategic initiatives to attract international investors and enhance the overall business climate.The rising demand for A-grade commercial spaces in Abu Dhabi is a clear indication of the emirate’s role as a major hub for international and regional companies. Businesses are increasingly prioritising quality and sustainability, and A-grade buildings offer the ideal environment for growth and innovation. Our Business Center facility in Aldar HQ has seen a phenomenal response from large corporations, government entities and SME’s in a short span of 3 months since opening.”
Office Square commercial space expansion plans are strategically aligned with the fast economic growth that is transpiring in the region. Following the opening of their first fully serviced concierge business center in Aldars HQ building in Al Raha in June, they are now set to open their 2nd location in Nation Towers Mall next month. With over 80% occupancy in just 3 months, Office Square are now securing pre-bookings for commercial office space for the 2nd location.
Over time, a noticeable trend has emerged: the scarcity of high-quality commercial space for small and medium-sized enterprises (SMEs). Most landlords prefer to lease out larger spaces, which means that smaller units are seldom available, making it challenging for smaller businesses to establish a presence in landmark buildings . In order to close the gap in the market Office square takes on larger spaces in A-grade buildings and creates smaller office units to cater to the growing SME industry.
