Europe and North America dominate the 2026 Oxford Economics Global Cities Index, holding 78 of the top 100 spots. The region accounts for 44 European cities, 30 U.S. cities, and four Canadian municipalities.
The ranking evaluates how the world’s largest cities blend economic opportunity with quality of life, talent, environmental resilience, and governance.
London ranks second globally, followed by Paris in third place, Dublin sixth, and Zurich tenth. The United States is represented by five cities in the top ten: New York, Seattle, San Francisco, Boston, and San Jose.
Other leading European performers include Oslo, Stockholm, and Copenhagen.
“In the U.S., strong scores in Economics and Human Capital drive their high rankings. In Europe, cities excel in Quality of Life, Environmental, and Governance categories,” said Liam Sides, director of City Services at Oxford Economics.
For those seeking superior quality of life, environmental performance, and stable governance, European cities such as Paris, Dublin, Zurich, and Oslo stand out. Paris earned particularly high marks for livability, while Dublin shone in environmental stewardship and governance. Zurich and Oslo also posted robust governance scores, with Oslo topping the category among leading European and U.S. cities.
U.S. cities remain attractive for firms looking for economic strength and talent pools. New York achieved the index’s maximum economics score, while Seattle, San Francisco, and San Jose also ranked highly in this area. Los Angeles paired a solid economics performance with a relatively high quality‑of‑life rating.
London is the notable European exception, holding the highest human‑capital score in the index, reflecting its world‑class universities, business ecosystem, and ability to attract skilled workers. However, its quality‑of‑life rating was the lowest among its peers at 77.
Both regions, however, confront a critical challenge: housing affordability. High housing costs continue to undermine overall livability despite strong incomes.
The report highlighted London, Dublin, and New York as still “struggling under the weight of high housing costs,” which weakened their quality‑of‑life scores. More affordable locales such as Toulouse are gaining workers from pricier markets like Paris thanks to lower housing expenses.
Europe’s biggest risers and fallers
Compared with the previous year, Dublin climbed seven places to sixth, driven by improvements in economics, quality of life, and the environment. It remains one of Europe’s most expensive housing markets, however, ranking in the bottom quarter globally for affordability.
Warsaw recorded Europe’s biggest rise, jumping 109 places to 61st. Istanbul climbed 42 places to 64th, while Madrid and Budapest each gained 14 places, reaching 30th and 111th respectively.
Helsinki rose 12 places to 26th and Brussels gained nine places to reach 25th. Berlin and Lyon each moved up seven places, while Zurich, Oslo, and Amsterdam rose six places.
Frankfurt slipped one place to 63rd. Rome fell eight places to 119th, while Lisbon recorded the sharpest decline among the cities listed, dropping 44 places to 148th.
Hidden gems: Europe’s cities to watch
Oxford Economics identified five European “cities to watch”: Warsaw, Tallinn, Eindhoven, Manchester, and Toulouse.
The Polish capital, which jumped more than 100 places, has become the largest centre for finance, technology, and business services in Central and Eastern Europe.
Its economy is forecast to grow by about 3 % a year over the next five years, almost twice the European city average. Warsaw is also overtaking Paris in average income per person this year when adjusted for purchasing power. Vilnius is expected to follow before the end of the decade.
Tallinn is projected to record the strongest GDP growth among major EU cities over the next decade. Technology and professional services dominate its economy, and Estonia leads its peers in AI adoption rates.
Eindhoven has emerged as a leading research and advanced‑manufacturing hub. Its Brainport cluster includes more than 5,000 high‑tech and knowledge‑based companies working in semiconductors, AI, and green technology. Industrial output is expected to expand strongly through 2030, though housing supply may struggle to keep pace with an expected 28,000 additional residents by 2040.
Manchester has outpaced every other UK city for GDP and productivity growth since 2010. It is expected to add Europe’s fifth‑largest number of jobs over the next 25 years, driven largely by financial and business services. Oxford Economics forecasts more jobs in these sectors for Manchester than for Paris or Berlin.
Toulouse is cited as one of Western Europe’s fastest‑growing cities. Its aerospace cluster includes Airbus, Thales, and Liebherr, and higher defence spending could support further expansion. Lower living costs, a warmer climate, and a high quality of life are attracting people from Paris and fuelling expectations of rapid population growth.
How AI is shaping cities’ prospects
“The global AI boom is leading to substantial rates of economic growth across those cities at the forefront of development,” Sides said.
While the U.S. holds a clear advantage, several European cities are well positioned to benefit. London boasts the index’s highest human‑capital score, elite universities, and a large digital economy. Eindhoven has a robust AI and advanced‑manufacturing cluster, and Tallinn is emerging as a technology hub.
Worldwide, demand for AI hardware helped Taipei climb 12 places to 48th. The Taiwanese capital is at the centre of the semiconductor industry and hosts major TSMC facilities.
Kuala Lumpur rose 14 places to 65th, supported by its technology sector, skilled workforce, and growing data‑centre industry. Shenzhen entered the top 100 at 93rd, serving as home to Huawei, Tencent, electric‑vehicle maker BYD, and firms in robotics and AI.
Oxford Economics noted that cities at the forefront of these technologies, including Shenzhen and Bengaluru, could achieve rapid growth if they leverage them effectively.
Asia drives the next phase of growth
Europe and North America still dominate the ranking, but Asia is becoming the main engine of urban growth. Its cities combine large populations with rapid gains in productivity and income, while moving into technology, advanced manufacturing, and financial services.
By 2050, the share of global‑city GDP generated by Chinese and Indian cities is forecast to exceed Europe’s share. Shanghai’s economy alone is expected to overtake San Francisco’s next year, despite being only a quarter of its size at the turn of the century. Ho Chi Minh City’s economy, meanwhile, is forecast to be almost as large as Berlin’s by 2050, compared with less than half its size today.