Adelaide CBD Economy Shows Robust Growth in Latest Data

The Adelaide Central Business District's economy has continued its strong growth trajectory, with local jobs rising from approximately 142,000 in 2019 to 170,000 in 2023, a 19% increase over four years, according to the latest figures from economy.id.com.au. This surge comes alongside a 5.7% growth in the economy during the last fiscal year, placing Adelaide third nationally in economic expansion behind only two other capital cities.

Why This Matters Now

This steady employment growth and expanding economic output are significant as Adelaide seeks to solidify its position as a key commercial hub in South Australia. The city’s three-year average Gross Regional Product (GRP) growth rate was 6.6%, second highest nationally after Perth, underscoring the sustained momentum of the local economy. These developments reflect a broader recovery in city activity post-pandemic, with the workforce and businesses demonstrating resilience and expansion.

Signs of Vitality in Business and Worker Activity

GST-registered businesses in the CBD have increased 10% above pre-pandemic levels, rising from 11,129 in 2019 to 12,338 in 2023. This growth indicates a thriving entrepreneurial environment as more businesses establish themselves in the city. Peak-day worker foot traffic, tracked between Tuesday and Thursday, has recovered to 94% of pre-COVID volumes, exemplifying returning vibrancy in the city’s workplace precincts.

Meanwhile, the office real estate market in Adelaide’s CBD has recorded a remarkable 115,500 square metres of positive net absorption between the first quarter of 2023 and the fourth quarter of 2025, outstripping comparable figures in other major cities. Prime-grade office space occupancy has grown by 108,500 square metres, while rental rates have experienced the nation’s strongest year-on-year growth of 13.0% as of the first quarter of 2025. These numbers reflect robust demand for commercial space amid the city’s economic upswing.

The workforce and businesses in the CBD and North Adelaide collectively employ 172,652 people as of 2025, representing nearly one-third of users within the City of Adelaide. Workers in these areas collectively spend around $2.5 billion annually in the local economy, with an average daily spend per worker estimated at $72, contributing about $205 million monthly. These figures highlight the role workers play not only as employees but also as significant drivers of downtown commerce and service sectors.

Looking Ahead

With the Adelaide CBD’s economy expanding and businesses continuing to flourish, the city stands positioned for further economic development. Maintaining and supporting infrastructure, services, and commercial property availability will be crucial to accommodate continued growth. For workers and businesses alike, the evolving economic environment offers opportunities but also calls for adaptability to the changing urban and commercial landscape.

Those engaged in the city’s commercial activities may find it advantageous to monitor trends in office space availability and rental rates closely. Similarly, government and private stakeholders could consider policies and investments that sustain the high levels of GST business registrations and employment growth seen recently.