The overall requirements for new office space in the UAE's capital city reached 11,260 sq.m. during Q2, up from 9,750 sq.m. during the same period last year.
Also, rents for Grade A offices in Abu Dhabi have seen a growth in Q2, a review of key trends and performance of the emirate's office market showed.
Headline rents for Grade A offices Abu Dhabi have shown resilience during the second quarter, mirroring the emerging trend in Dubai, with rents in three of the five submarkets – Abu Dhabi Free zones (AED 1,970 psm), Capital Centre (AED 1,325 psm) and Corniche/Downtown (AED 1,600 psm) – experiencing rental growth, Knight Frank said in its Abu Dhabi Office Market Review report.
After rising by 6.7 percent over the last 12 months, rents in the Corniche/Downtown area have now reached their highest level since at least 2017.
According to the UK real estate consultancy, anomalous performance of climbing rents and steady vacancy rates is also in part being driven by landlords' needs to boost their rental income to meet financing obligations and so some are perhaps adjusting rents upwards without new demand to support any increases.