Berlin ($48/sqft, 7.4% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Berlin on rent and tax and London on talent depth.
Berlin ($48/sqft, 7.4% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Berlin on rent and tax and London on talent depth.
| Metric | Berlin | London |
|---|---|---|
| Region | EMEA | EMEA |
| Country | Germany | United Kingdom |
| Class A rent (USD/sqft/yr) | $48 | $121 |
| Class A rent (local) | 44 EUR | 95 GBP |
| Vacancy | 7.4% | 8.6% |
| Trend | flat | rising |
| Prime yield | 4.3% | 4.5% |
| Premium flex / seat / month (USD) | $580 | $1,380 |
| Submarkets covered | 5 | 7 |
| Corporate tax | 30% | 25% |
| Metric | Berlin | London |
|---|---|---|
| Typical term | 5 yrs | 10 yrs |
| Typical rent-free | 4 mos | 24 mos |
| Lease norms | Net leases dominate. 5-10 year terms; tenants frequently negotiate break options at year 3 or 5. Free rent of 3-6 months on a 5-year deal; TI of €60-€100/sqm typical. | 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. |
| Tax note | 15% federal corporate income tax plus 5.5% solidarity surcharge plus Berlin trade tax (Gewerbesteuer) of about 14.35% for an effective combined rate of about 30%. | 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. |
| Metric | Berlin | London |
|---|---|---|
| Talent index (0–100) | 88 | 96 |
| Talent note | Deepest tech and creative talent pool in Germany. Strong feed from TU Berlin, HU, FU, and the rapidly growing Hertie School. Multilingual talent base supports non-German European HQs. | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. |
Berlin: BVG U-Bahn (10 lines), S-Bahn (15 lines), tram, and bus. Berlin is highly walkable and U-Bahn-served. BER airport (opened 2020) is connected via the S-Bahn S9.
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.
Berlin is the cheaper Class A market on a USD basis.
London has the deeper talent index (96/100 vs 88/100).
London has the lower headline corporate tax (25% vs 30%). Local incentives can change the effective rate materially.
Berlin typical term is 5 years with 4 months free; London runs 10 years with 24 months free.
Berlin: BVG U-Bahn (10 lines), S-Bahn (15 lines), tram, and bus. Berlin is highly walkable and U-Bahn-served. BER airport (opened 2020) is connected via the S-Bahn S9. 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.
Score Berlin, London and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.