Budapest ranked 36th out of 173 cities, scoring 91 points out of 100. That puts it firmly among the higher-rated cities worldwide, although its position fell by four places compared with last year and its overall score dropped by one point.

For expats living in Budapest, the result provides an interesting snapshot of how the Hungarian capital compares with other major cities around the world - and where it still has room for improvement.

Budapest still scores strongly

While the four-place drop is significant, Budapest's 91-point score remains substantially above the global average of 76.1.

The capital also ranks ahead of a number of well-known European and international cities. 

Prague ranked 49th with 89 points, while Madrid was 42nd with 90 points. Barcelona ranked 51st with 88 points, and Rome was 53rd with 87 points.

Budapest also sits comfortably ahead of Athens, which ranked 88th with 78 points.

At the other end of the scale, Zurich ranked fifth with 96 points, while Auckland and Luxembourg scored 95 points, ranking 12th and 15th respectively.

Budapest's four-place decline was shared by Luxembourg, Portland, Abu Dhabi, Dubai and Saipan, although their scores and previous rankings varied considerably.

The EIU ranking is broader than a simple assessment of whether residents enjoy life in a particular city. It considers 30 indicators across five categories: stability, healthcare, culture and environment, education, and infrastructure.

That makes it particularly relevant when comparing cities as places to live, work and do business.

Copenhagen remains number one

Copenhagen retained the top spot in the 2026 ranking, followed by Vienna and Melbourne.

The top 10 continues to be dominated by cities in wealthy developed countries, with Australia, Canada, Japan and Switzerland all represented.

The overall global picture has not changed dramatically. The average liveability score remained unchanged at 76.1 points, although individual categories moved in different directions.

Average stability scores fell by 0.5 points, while culture and environment also weakened slightly. Healthcare recorded the strongest improvement, rising by an average of 0.7 points, with smaller gains in education and infrastructure.

Asia continues to close the gap

Western Europe remains the strongest-performing region overall, but its lead is no longer growing.

Asian cities continued to improve, with nine Asian cities and seven European cities now among the world's 20 most liveable.

The EIU attributed part of the improvement in several Chinese cities to better healthcare indicators. The changing balance suggests that the global liveability landscape is becoming increasingly competitive, rather than being dominated by a small group of Western European cities.

Security concerns hit Middle Eastern cities

The sharpest deterioration in the 2026 index came in the Middle East and North Africa.

The EIU said the war involving Iran that began in February, Israeli and US strikes on Iran and subsequent regional responses had a major impact on perceptions of security.

The 18 Middle Eastern and North African cities included in the index fell by more than three places on average.

Muscat suffered the biggest decline, dropping 14 places to 123rd, with a score of 68. Kuwait City fell 12 places, Amman 11 and Manama 10, while Doha dropped seven places. Tehran also entered the world's 10 least liveable cities.

Against that backdrop, Budapest's four-place decline looks relatively modest.

For expats already living in the capital, the ranking offers another indication that Budapest remains a highly competitive city internationally - even if there is still plenty of scope to improve its position in the years ahead.

Source:
Economist.com

Photo: Pixabay

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