--- title: "London vs Tel Aviv: Class A office comparison" description: "Side-by-side Class A office comparison for London and Tel Aviv — rent, vacancy, talent, tax, lease norms, transit, and top submarkets." canonical: https://classa.info/compare/london-vs-tel-aviv pageType: comparison lastUpdated: 2026-04-15T00:00:00.000Z license: "CC BY 4.0 with attribution to Class A Atlas (https://classa.info)." --- > London ($121/sqft, 8.6% vacancy) and Tel Aviv ($66/sqft, 12.4% vacancy) compete on different axes: London on talent depth and Tel Aviv on rent and tax. ## TL;DR - Class A rent: London $121/sqft vs Tel Aviv $66/sqft. - Vacancy: London 8.6% vs Tel Aviv 12.4%. - Talent index: London 96 vs Tel Aviv 90. - Corporate tax: London 25% vs Tel Aviv 23%. - Premium flex/seat/month: London $1,380 vs Tel Aviv $880. # London vs Tel Aviv: Class A office comparison **London ($121/sqft, 8.6% vacancy) and Tel Aviv ($66/sqft, 12.4% vacancy) compete on different axes: London on talent depth and Tel Aviv on rent and tax.** ## TL;DR - [Class A](/glossary/class-a) rent: London $121/sqft vs Tel Aviv $66/sqft. - Vacancy: London 8.6% vs Tel Aviv 12.4%. - Talent index: London 96 vs Tel Aviv 90. - Corporate tax: London 25% vs Tel Aviv 23%. - [Premium flex](/topics/lease-vs-flex)/seat/month: London $1,380 vs Tel Aviv $880. ## Market data side-by-side | Metric | London | Tel Aviv| | Region | EMEA | EMEA| | Country | United Kingdom | Israel| | Class A rent (USD/sqft/yr) | $121 | $66| | Class A rent (local) | 95 GBP | 220 ILS| | Vacancy | 8.6% | 12.4%| | Trend | rising | softening| | Prime yield | 4.5% | 5.4%| | Premium flex / seat / month (USD) | $1,380 | $880| | Submarkets covered | 7 | 5| | Corporate tax | 25% | 23%| ## Lease norms | Metric | London | Tel Aviv| | Typical term | 10 yrs | 5 yrs| | Typical rent-free | 24 mos | 6 mos| | Lease norms | London leases are predominantly Full Repairing and Insuring (FRI). Tenant pays service charge and is responsible for dilapidations on lease end. Rent reviews to open-market rent every 5 years are standard. Rent-free periods of 18-30 months on a 10-year term are typical, with 'capped' rent-free for break-clause certainty. Personal guarantees are uncommon for institutional tenants; rent deposits are common for younger covenants. | Net leases. 5-7 year terms standard. Free rent of 4-9 months and TI of ILS 600-1,200/sqm typical on a 5-year deal.| | Tax note | UK corporation tax is 25% (19% small profits rate). Business rates are a major occupancy cost — ~50% of rateable value annually, levied separately from rent and service charge. | 23% Israeli corporate income tax. Approved Enterprise / Preferred Enterprise regimes provide reduced rates (7.5-16%) for qualifying R&D and high-tech activities.| ## Talent | Metric | London | Tel Aviv| | Talent index (0–100) | 96 | 90| | Talent note | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. | Among the deepest tech, AI, cyber, and defense talent pools globally. Strong feed from Tel Aviv University, Technion, Hebrew University, and the IDF tech units (8200, Talpiot). English fluency is structural in tech.| ## Transit & commute **London:** The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. **Tel Aviv:** Tel Aviv Light Rail Red Line (opened 2023), Israel Railways. Ben Gurion Airport (TLV) is rail-served. Tel Aviv Metro Lines 1, 2, 3 in planning. Bus network. ## Top submarkets — London - [**Mayfair & St James's**](/cities/london/mayfair-st-james) — trophy tier · £165/sqft/yr · ≈ $210 PSF/yr USD - [**City of London**](/cities/london/city-of-london) — trophy tier · £95/sqft/yr · ≈ $121 PSF/yr USD - [**Fitzrovia & Soho**](/cities/london/fitzrovia-soho) — prime tier · £110/sqft/yr · ≈ $140 PSF/yr USD ## Top submarkets — Tel Aviv - [**Sarona / Da Vinci**](/cities/tel-aviv/sarona-da-vinci) — trophy tier · ₪260/sqm/mo · ≈ $78.3 PSF/yr USD - [**Bavli (Azrieli Center)**](/cities/tel-aviv/bavli-azrieli) — trophy tier · ₪250/sqm/mo · ≈ $75.3 PSF/yr USD - [**Rothschild & Allenby**](/cities/tel-aviv/rothschild-allenby) — trophy tier · ₪240/sqm/mo · ≈ $72.2 PSF/yr USD ## Decision criteria ### Pick by cost Tel Aviv is the cheaper Class A market on a USD basis. ### Pick by talent depth London has the deeper talent index (96/100 vs 90/100). ### Pick by tax Tel Aviv has the lower headline corporate tax (23% vs 25%). Local incentives can change the effective rate materially. ### Pick by lease optionality London typical term is 10 years with 24 months free; Tel Aviv runs 5 years with 6 months free. ### Pick by transit London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. Tel Aviv: Tel Aviv Light Rail Red Line (opened 2023), Israel Railways. Ben Gurion Airport (TLV) is rail-served. Tel Aviv Metro Lines 1, 2, 3 in planning. Bus network. ## Run a 4-city comparison Score London, Tel Aviv and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD. [**Run a 4-city comparison →**](/tools/city-comparator) ## Frequently asked questions ****Is Class A office cheaper in London or Tel Aviv?**** : Tel Aviv is cheaper on a USD basis: $66/sqft vs $121/sqft. ****Which has better talent depth, London or Tel Aviv?**** : London indexes higher on talent depth (96 vs 90). ****Which has more sublease availability, London or Tel Aviv?**** : Tel Aviv carries higher vacancy (12.4% vs 8.6%) and therefore typically more sublease overhang. ****What lease term should I expect in London vs Tel Aviv?**** : London typical term is 10 years with 24 months rent-free; Tel Aviv typical term is 5 years with 6 months rent-free. ****How does transit and commuter access compare?**** : London: The Elizabeth Line transformed cross-London commute times. Heathrow to Liverpool Street is 35 minutes; Paddington to Canary Wharf is 17 minutes. Crossrail-adjacent assets command a measurable rent premium. Tel Aviv: Tel Aviv Light Rail Red Line (opened 2023), Israel Railways. Ben Gurion Airport (TLV) is rail-served. Tel Aviv Metro Lines 1, 2, 3 in planning. Bus network. ## Editorial provenance Reviewed by [**Samuel Okafor**](/about/authors/samuel-okafor) — EMEA contributing editor. Last updated 2026-04-15. See our [methodology](/about/methodology) and [editorial standards](/about/editorial-standards). ### Primary sources for this page - [CBRE Marketview reports](https://www.cbre.com/insights) — CBRE - [JLL Office Insight](https://www.jll.com/en/trends-and-insights) — JLL - [Cushman & Wakefield Marketbeat](https://www.cushmanwakefield.com/en/insights) — Cushman & Wakefield - [Savills World Research](https://www.savills.com/research_articles/) — Savills - [Colliers Global Office Outlook](https://www.colliers.com/en/research) — Colliers [Full sources index](/about/sources) · [Submit a correction](/about/corrections) --- Citation: Source: Class A Atlas (https://classa.info/compare/london-vs-tel-aviv), updated 2026-04-15T00:00:00.000Z.