Aldar says occupancy in its prime office space at 97%

Aldar

Aldar Properties, the largest developer in Abu Dhabi, said occupancy levels in prime grade A commercial properties have reached 97 percent on rising demand and limited supply.

The properties include four buildings at Abu Dhabi Global Market (ADGM), Aldar HQ, and International Tower in the Capital Gate district.

Occupancy rates at the towers at ADGM, the global financial centre on Al Maryah Island, reached 99 percent, compared to 79 percent in 2022. 

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The developer acquired the four office towers – Al Sila, Al Sarab, Al Maqam, and Al Khatem – with a total net leasable area of 180,000 sq m from Mubadala Investment Company for AED4.3 billion ($1.17 billion).

The average lease term is more than four years, with the tower home to companies such as PwC, Deloitte, Brevan Howard, Cleveland Clinic, Abu Dhabi National Oil Company, G42 Asset Management and Abu Dhabi Commercial Bank.

HQ and International Tower currently have an average occupancy rate of 95 percent.

During the first half of 2023, the office sector in Abu Dhabi saw strong growth, with grade A rents returning to levels last seen in 2016, the developer said in a statement. 

Jassem Saleh Busaibe, CEO at Aldar Investment, said: “Abu Dhabi’s commercial property market continues to perform strongly, bucking the global trend. With a favourable business environment, the city continues to be an attractive destination for leading global corporates to establish their regional presence.”

Aldar has recently partnered with Mubadala to acquire Al Maryah Tower, another prime commercial property on Al Maryah Island. The tower is expected to achieve a pre-leasing occupancy rate of 50 percent by year-end and be operational in the first quarter of 2024.

The Abu Dhabi-listed developer and Mubadala Investment Company in March struck a deal to develop 63,000 square metres of commercial space within ADGM and are eyeing plots of land to further increase the free zone’s prime office supply.