Abu Dhabi’s property boom contrasts with other major cities around the world such as New York, London and San Francisco, where office vacancy rates remain high.
Abu Dhabi’s drive to attract major hedge funds to its financial hub, Abu Dhabi Global Market, to a shortage of office space, as mentioned. Bloomberg Agency.
The emirate has been working hard to attract tenants over the years, but the four iconic towers of Abu Dhabi Global Market, located on Al Maryah Island, are almost full. So the government is now expanding the free zone to include neigh bouring Reem Island, increasing its size tenfold and making it one of the world’s largest financial districts at 14.4 million square metres (3,558 acres).
Officials are asking existing tenants on Reem Island to obtain a licence from the Abu Dhabi Global Market or vacate their offices by the end of the year. About a quarter of those tenants may have to move, according to real estate firm Cushman & Wakefield Core.
“Occupancy rates on Al Maryah Island have exceeded 95% due to the increasing demand from companies seeking to establish a presence in ADGM. Therefore, expansion is the natural and necessary next step to meet the increasing demand from companies seeking to establish a presence in Abu Dhabi’s financial centre,” an ADGM representative said in an emailed statement.
Abu Dhabi’s property boom contrasts with other major cities around the world, including New York, London and San Francisco, where office vacancy rates remain high as many employees shift to remote work in the wake of the pandemic. San Francisco’s vacancy rate has more than doubled to 16%, a level not seen since the 1990s.
