European and North American cities dominate Oxford Economics’ 2026 Global Cities Index, taking 78 of the top 100 positions. Europe accounts for 44 cities, while the U.S. has 30 and Canada has four.

The index assesses the world’s largest cities across economics, human capital, quality of life, environmental conditions and governance.

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London, Paris And New York Lead Major Cities

London ranks second globally, followed by Paris in third, Dublin in sixth and Zurich in 10th. Five U.S. cities, New York, Seattle, San Francisco, Boston and San Jose, also place in the global top 10.

U.S. cities generally score strongly on economics and human capital, while European cities perform better in quality of life, environmental conditions and governance, according to Liam Sides, director of City Services at Oxford Economics.

London stands out among European cities with the index’s highest human-capital score, although its quality-of-life score of 77 is its weakest category.

Housing Costs Remain A Common Challenge

High housing costs weigh on quality-of-life scores in London, Dublin and New York. More affordable cities such as Toulouse can attract workers from larger, more expensive urban centers.

Dublin climbed seven places to sixth, while Warsaw recorded Europe’s biggest rise, jumping 109 places to 61st. Istanbul rose 42 places to 64th, while Madrid and Budapest gained 14 places each.

Not all major cities improved. Rome fell eight places to 119th, while Lisbon dropped 44 places to 148th.

Five European Cities To Watch

Oxford Economics highlighted Warsaw, Tallinn, Eindhoven, Manchester and Toulouse as European cities to watch.

Warsaw’s economy is forecast to grow by about 3% annually over the next five years, nearly twice the European-city average. Tallinn is expected to record the strongest GDP growth among major EU cities over the next decade, supported by technology and professional services.

Eindhoven remains a major research and advanced-manufacturing center, with more than 5,000 high-tech and knowledge-based companies in its Brainport cluster. Manchester has recorded the strongest GDP and productivity growth among UK cities since 2010, while Toulouse continues to benefit from its aerospace industry and relatively lower living costs.

AI Is Reshaping Urban Growth

AI is increasingly influencing the economic prospects of cities with strong technology and advanced-manufacturing industries. London benefits from its universities and digital economy, while Eindhoven combines AI with advanced manufacturing and Tallinn has relatively high AI adoption among Central and Eastern European peers.

Outside Europe and North America, Taipei climbed 12 places to 48th, Kuala Lumpur rose 14 places to 65th and Shenzhen entered the top 100 at 93rd. Oxford Economics also expects cities such as Shenzhen and Bengaluru to benefit from AI and other emerging technologies if innovation translates into productivity gains.

Asia Gains Ground

Europe and North America continue to dominate the index, but Asian cities are becoming increasingly important drivers of urban economic growth.

By 2050, Chinese and Indian cities are forecast to account for a larger share of global-city GDP than Europe. Shanghai’s economy is expected to overtake San Francisco’s next year, while Ho Chi Minh City is projected to approach Berlin’s economic size by 2050.

The 2026 index therefore shows continued strength among established European and North American cities alongside faster growth in several Asian urban centers.