Madrid has returned to the list of the world’s 20 cities with the highest quality of life.
In the ranking compiled by Deutsche Bank Research Institute, the Spanish capital took 18th place, ahead of Paris, London and New York.
This means Madrid has climbed 15 positions compared with 2019, although it is two places lower than last year.
Why Madrid has strengthened its position
The Mapping the World’s Prices 2026 report by Deutsche Bank Research Institute attributes this progress to factors such as safety, infrastructure, mobility and the quality of urban services, as well as higher salary levels and the city’s growing international appeal.
According to the study, Barcelona, which ranks 42nd, also maintains a strong position among Europe’s largest cities thanks to its quality of life, economic momentum and ability to attract talent and investment.
Over the past decade, Madrid and Barcelona have strengthened their international image as attractive cities in which to live and work.
The main challenge is housing affordability
Nevertheless, the report notes that the main challenge for both cities is the rising cost of housing.
In Madrid, the average net salary is 2200 euros per month, 45% higher than ten years ago, while housing prices over the same period have risen by 94% to 8013 euros per square metre.
Rent for a three-bedroom apartment has also increased significantly: over the past 10 years it has risen by 77% and now averages 2493 euros per month.
Despite this trend, Madrid maintains a competitive position in terms of disposable income after rent.
On average, this figure stands at 1908 euros per month, placing the city 40th in the world by this indicator.
Quality of life and housing access will shape future competition
The study concludes that Madrid and Barcelona have become more visible internationally as centres for living, working, investment and entrepreneurship.
However, housing affordability has become one of the main factors that will determine their future competitiveness in attracting talent, investment and business activity.
For buyers considering property in Spain, these figures confirm sustained interest in major cities where high-quality urban living is combined with strong housing demand.
Luxembourg ranks first in the world for quality of life for the second year in a row.
As for the cost of living, Zurich and Geneva remain the most expensive cities in the world. Tel Aviv entered the top five, influenced by the strengthening of the shekel and geopolitical tensions in the Middle East.
