Cape Town ($10/sqft, 12.4% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Cape Town on rent and tax and London on talent depth.
Cape Town ($10/sqft, 12.4% vacancy) and London ($121/sqft, 8.6% vacancy) compete on different axes: Cape Town on rent and tax and London on talent depth.
| Metric | Cape Town | London |
|---|---|---|
| Region | EMEA | EMEA |
| Country | South Africa | United Kingdom |
| Class A rent (USD/sqft/yr) | $10 | $121 |
| Class A rent (local) | 180 ZAR | 95 GBP |
| Vacancy | 12.4% | 8.6% |
| Trend | rising | rising |
| Prime yield | 8.6% | 4.5% |
| Premium flex / seat / month (USD) | $280 | $1,380 |
| Submarkets covered | 5 | 7 |
| Corporate tax | 27% | 25% |
| Metric | Cape Town | London |
|---|---|---|
| Typical term | 5 yrs | 10 yrs |
| Typical rent-free | 5 mos | 24 mos |
| Lease norms | Net leases. 5-7 year terms with escalation clauses. Free rent of 3-7 months and TI of ZAR 800-1,500/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 | 27% South African corporate income tax. Western Cape SEZ programs offer additional incentives for qualifying activities. | 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 | Cape Town | London |
|---|---|---|
| Talent index (0–100) | 78 | 96 |
| Talent note | Deep tech, hospitality, BPO, and creative talent. Strong English-language professional base. Strong feed from UCT, Stellenbosch, and CPUT. Cape Town has structurally attracted in-migration from Johannesburg and abroad. | Largest financial-services and technology talent pool in EMEA. Average all-in compensation indexes 96 vs. New York's 100. |
Cape Town: MyCiti BRT, Metrorail (limited service). Cape Town International Airport (CPT) bus-served. Heavy car dependency outside the CBD core.
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.
Cape Town is the cheaper Class A market on a USD basis.
London has the deeper talent index (96/100 vs 78/100).
London has the lower headline corporate tax (25% vs 27%). Local incentives can change the effective rate materially.
Cape Town typical term is 5 years with 5 months free; London runs 10 years with 24 months free.
Cape Town: MyCiti BRT, Metrorail (limited service). Cape Town International Airport (CPT) bus-served. Heavy car dependency outside the CBD core. 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 Cape Town, 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.