Europe versus the US: The world’s best cities in 2026 ranked

European and North American cities dominate the 2026 Oxford Economics Global Cities Index, occupying 78 of the top 100 places. Europe accounts for 44 cities, while 30 are in the US and four are in Canada. ADVERTISEMENT ADVERTISEMENT The ranking assesses how well the world’s largest cities combine economic opportunity with quality of life, skilled workers, environmental resilience and stable governance. London ranks second globally, Paris third, Dublin sixth and Zurich tenth. Five US cities — New York, Seattle, San Francisco, Boston and San Jose — feature in the global top 10. Europe’s highest-ranked cities also include Oslo, Stockholm and Copenhagen. “In the US, it is strong scores across the Economics and Human Capital categories that drive their elevated position. In Europe, however, it is outperformance across the Quality of Life, Environmental, and Governance categories,” said Liam Sides, director of City Services at Oxford Economics. For those prioritising quality of life, environmental performance and stable governance, Europe’s leading cities stand out. Paris scored particularly strongly on quality of life, while Dublin performed well for both the environment and governance. Governance was also the main strength of Zurich and Oslo, with the latter receiving the highest score in this category among the leading European and US cities. For businesses seeking economic strength and access to talent, US cities generally have the advantage. New York received the index’s maximum economics score, while Seattle, San Francisco and San Jose also ranked particularly highly in this category. Los Angeles also combined a strong economics score with a relatively high quality-of-life ranking. London is the notable European exception: it achieved the highest human-capital score in the entire index, reflecting its universities, business environment and ability to attract skilled workers. However, quality of life was its lowest-scoring category, at 77. The two regions nevertheless share a major weakness: housing affordability. The report said London, Dublin and New York were “still struggling under the weight of high housing costs”, weakening their quality-of-life scores despite high incomes. More affordable cities could gain a competitive advantage by combining rising incomes with lower housing expenditure. Toulouse, for example, has attracted workers away from Paris partly because of its relative affordability. Europe’s biggest risers and fallers Compared with last year, Dublin climbed seven places to sixth, with improvements in economics, quality of life and the environment. However, it remains one of Europe’s most expensive housing markets and sits in the bottom quarter globally for housing 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 picked 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. Oxford Economics expects the Estonian capital Tallinn to record the strongest GDP growth among major EU cities over the next decade. Technology and professional services play a large role in its economy, while Estonia has relatively high rates of AI adoption compared with its Central and Eastern European peers. Eindhoven in the Netherlands is one of Europe’s leading research and advanced-manufacturing centres. Its Brainport cluster includes more than 5,000 high-tech and knowledge-based companies working in semiconductors, AI and green technology. Oxford Economics expects its industrial output to record one of Europe’s strongest expansions through 2030. However, housing supply may struggle to keep pace with the additional 28,000 residents expected by 2040. Manchester has outpaced every other UK city for GDP and productivity growth since 2010. Oxford Economics expects it to add Europe’s fifth-largest number of jobs over the next 25 years. Financial and business services will drive much of that growth, with Manchester forecast to create more jobs in these sectors than Paris or Berlin. The report named Toulouse one of Western Europe’s fastest-growing cities. Its aerospace cluster includes Airbus, Thales and Liebherr, while higher defence spending could support further growth. 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. Although the US has a clear advantage, several European cities are also well placed to benefit. London has the index’s highest human-capital score, elite universities and a large digital economy. Eindhoven has a strong AI and advanced-manufacturing cluster, while Tallinn is an emerging technology hub. Across the globe, 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 manufacturing facilities run by TSMC. 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. The Chinese technology centre is home to Huawei, Tencent and electric-vehicle maker BYD, as well as companies working in robotics and AI. Oxford Economics said cities at the forefront of these technologies, including Shenzhen and Bengaluru, could achieve rapid growth if they use 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.