Tel Aviv Ranks Among the World’s Most Expensive Cities for Office Fit-Outs
Tel Aviv is among the world’s priciest markets for office fit-outs, according to JLL’s new Global Office Fit-Out Costs Guide 2026. The study covers the work needed to turn an empty office shell into a functioning workplace, including finishing, electrical and HVAC systems, communications, security, audiovisual equipment, furniture and technology infrastructure.
JLL examined 68 cities in 40 countries, grouped into Asia-Pacific, Europe and the Middle East, Latin America, and North America. Israel falls into the highest-cost tier, with a medium-spec corporate office fit-out costing more than $2,500 per square meter. That compares with a global average of $2,150 per square meter and about $2,300 in Europe and the Middle East. Tel Aviv ranks 10th in the Europe, Middle East and Africa region and 28th globally, behind cities including New York, London, Dubai and Riyadh, but ahead of Paris, Warsaw, Madrid and Milan.
North America is now the most expensive region overall, averaging about $3,200 per square meter, led by New York, San Francisco and Boston. Asia-Pacific is the cheapest region, at roughly $1,500 per square meter. The report is based on first-quarter 2026 data, and JLL said it could not precisely measure the impact of the war with Iran, which unfolded during the research period, on the economy and supply chains.
JLL said fit-out costs worldwide rose 2% to 6% over the past year in local-currency terms. The main pressures were skilled labor shortages, energy-price volatility, supply-chain disruptions, higher component prices and growing workplace technology complexity. Construction work and electrical and HVAC systems remain the biggest cost items, while AI is increasing demand for advanced audiovisual systems, smart-building tools, security, hybrid meeting rooms and other infrastructure. In Israel, where many components are imported, JLL said the risks include delays, budget overruns and the need for earlier procurement and planning.
