The quality of life ranking is based on a range of indicators, including life expectancy, income per person, income equality, housing expenditure, access to recreation and cultural sites, and crime rate.
Canberra, which was ranked second in 2024, overtook Grenoble in France to claim the top position this year.
The Global Cities Index evaluates the world’s 1,000 largest cities across five categories: Economics (30%), Human Capital (25%), Quality of Life (25%), Environment (10%), and Governance (10%). These categories are assessed through 27 specific indicators to determine a city’s overall performance and ranking.
While Canberra excelled in quality of life, it ranked lower in other categories: 15th in Governance, 103rd in Human Capital, 241st in Environment, and 245th in Economics. As a result, Canberra’s overall ranking dropped to 52nd in 2025, down from 44th the previous year.
New York was rated the best overall city in the 2025 Index, followed by London and Paris. New York and London maintained their lead positions for the second consecutive year, driven by strong performance in Economics and Human Capital. Paris, San Jose, and Seattle completed the top five, with the latter two performing well in GDP per person and quality of life measures.
Two Australian cities—Melbourne and Sydney—were ranked in the top 10 globally. Melbourne was Australia’s highest-ranked city at sixth place, improving from ninth in 2024. It performed particularly well in Human Capital, ranking 12th globally due to its strong higher education sector and skilled workforce. Melbourne also ranked in the top 20 for Economics, the top ten per cent for Environment, and shared 15th place with Sydney for Governance.
Sydney moved from 16th to seventh in the global rankings, supported by improvements in Quality of Life and Environment. It surpassed Melbourne in Human Capital, owing to its large concentration of corporate headquarters and a diverse foreign-born population. However, rising housing costs continue to impact its Quality of Life score.
Brisbane rose from 27th in 2024 to 23rd in 2025, overtaking Perth to become Australia’s third-highest-ranked city. It was noted for its high life expectancy, international demographic, and strong educational institutions. Environmental factors such as natural disasters and high housing costs, however, weighed on its performance.
Perth fell from 23rd to 31st, with its economic reliance on mining contributing to lower diversity in its economy. Canberra also experienced a slight drop in overall ranking, despite topping the global list for Quality of Life, supported by high life expectancy and strong income equality.
Other Australian cities in the 2025 Index include Adelaide, which ranked 54th (down from 51st), and the Gold Coast, which improved from 81st to 69th.
The Global Cities Index, compiled by Oxford Economics, provides a comparative assessment of the world’s leading urban areas using consistent data and methodology. It aims to identify the relative strengths and weaknesses of cities as they adapt to global economic uncertainties. In 2024, the cities in the index collectively housed a third of the world’s population and contributed nearly 60 per cent of global GDP.
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