London has been named the second best city in the world in Oxford Economics' Global Cities Index. The leading global economic advisory firm assessed the strengths, weaknesses and future potential of the world's 1,000 largest cities.
London was placed second for the second year running, with New York named the best city in the world. In the 2026 report, Oxford Economics said: "London remains one of the clearest examples of a truly global city. Its influence extends across business, science and technology, education, and the arts, giving it a reach that few other cities can equal."
Strengths in economics and human capital
The report said London was placed seventh in its "economics" category, thanks to the scale of its economy — the fourth-largest worldwide — and its track record of stable growth. It was named the best in the world for "human capital", due to "its concentration of higher education institutions and ability to generate some of the highest levels of educational attainment globally".
London also benefits from its continued appeal to highly educated migrants, with foreign-born residents accounting for around 40% of the population. The report said: "For employers, that provides access to a deep and varied talent pool; for the city, it supports population growth and a younger demographic than many peer cities, such as New York, Tokyo, and Paris."
Environment performance and quality of life concerns
London was praised for its environmental performance, with policies such as ULEZ praised for improving air quality. It was named 67th in the environment category, which the report called a "strong" performance given its size. "It compares favourably with peer cities on carbon emissions intensity, supported by its services-oriented economy with a relatively low carbon footprint", the report states.
However, London scored poorly in the quality of life category, ranking 147th. "The city's wealth is concentrated in a relatively small number of neighbourhood," the report stated. "London's Quality of Life score is also weighed down by its housing affordability crisis, with residents devoting a larger share of their income to housing costs than those in nearly any other city of the world."
The report added: "This reflects deep-rooted constraints on the supply of affordable homes, which will take both time and political resolve to address."
Top 10 best cities
The top 10 best cities in the world are: New York, London, Paris, Seattle, San Francisco, Dublin, Boston, San Jose (United States), Tokyo, and Zurich.
