Madrid is a real cultural gem, drawing visitors to experience its renowned museums, vibrant culinary scene, and lively nightlife, earning its rank as the third most visited city in Europe. Situated centrally in Spain, the country’s capital serves as a gateway to the Iberian Peninsula and Southern Europe, attracting a multicultural crowd and fostering innovation and entrepreneurship.
But how does Madrid fare in global rankings on economic competitiveness and sustainability performance, livability, city brand strength, and reputation?
Overview of Madrid’s Performance & Potential
The following table offers an overview of Madrid’s overall performance across various international rankings. For a deeper analysis, our custom reports provide tailored insights for specific contexts, such as cities, regions, or countries.
| Ranking | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| Brand Finance Global City Index | – | – | – | – | 23 | 17 | – |
| Resonance World’s Best Cities | – | 12 | 10 | 8 | 13 | 7 | 7 |
| Global Financial Center Index | – | 43 | 33 | 18 | 40 | 52 | 53 |
| 2Thinknow Innovation Cities Index | 28 | – | 40 | – | 19 | – | – |
| Kearney Global Cities Index | 15 | 16 | 19 | 19 | 12 | 13 | – |
| Mercer Quality of Living Ranking | 46 | – | – | – | 46 | 47 | – |
| Mercer Cost of Living Ranking | 82 | 87 | 67 | 90 | 83 | 76 | – |
| Numbeo Cost of Living Index | – | 206 | 277 | 302 | 273 | 184 | 147 |
| Numbeo Quality of Life Index | – | 102 | 118 | 108 | 89 | 14 | 67 |
| IESE Cities in Motion Index | 24 | 25 | – | 27 | – | 20 | 24 |
| Arcadis Sustainable Cities Index | – | – | – | 28 | – | 50 | – |
City Brand Strength
Madrid’s global stature is on the rise, underpinned by its cultural richness, quality of life, and international connectivity. Ranked 17th in Brand Finance’s Global City Index 2024 and 7th in Resonance Consultancy‘s World’s Best Cities 2025 report, the Spanish capital is celebrated for its vibrant neighborhoods, thriving arts and culinary scenes, and strong livability.
Appeal to Investors and Business
Madrid’s economic profile is defined by its growing innovation capacity, competitive business environment, and strategic role in global finance. Ranking 19th in 2Thinknow’s Innovation Cities 2023 Index, the city demonstrates strong performance in technology, research, and creative industries. It holds 13th place in Kearney’s 2024 Global Cities Report, highlighting its international connectivity, human capital, and economic competitiveness. Although positioned 53rd in the GFCI 37 Rank, Madrid continues to strengthen its financial sector, supported by a stable economy, expanding professional services, and increased investment in digital infrastructure.
Appeal to Talent
Madrid attracts global talent with its strong quality of life, cultural vibrancy, and relatively affordable living costs. Ranked 47th in Mercer’s Quality of Living Ranking 2024, and 67th in Numbeo’s Quality of Life Index 2025, the city is recognised for its healthcare, public transport, and welcoming urban environment. Its affordability further enhances its appeal—Madrid ranks 76th in Mercer’s Cost of Living Index 2024 and 147th in Numbeo’s Cost of Living Index 2025, making it one of the more cost-effective major European capitals for residents and international professionals alike.
Urban Sustainability
Madrid is advancing its sustainability agenda through urban regeneration, green mobility, and investment in smart infrastructure. Ranked 50th in the Arcadis Sustainable City Index 2024 , the city is enhancing its environmental performance with initiatives focused on public transport electrification, low-emission zones, and urban greening. In the IESE Cities in Motion Index 2025, Madrid ranks 24th overall, reflecting particular strengths in governance, international outreach, and mobility.
Our Key Takeaways
Madrid continues to strengthen its position as a leading global city, blending cultural depth, economic competitiveness, and a high quality of life. With a strong international profile and growing influence in innovation and finance, the Spanish capital is emerging as one of Europe’s most attractive urban hubs.
- Strengths: Diverse cultural scene, affordable cost of living, strong infrastructure and connectivity.
- Weaknesses: Lagging behind Barcelona in global brand perception.
- Opportunities: Rising status in global financial and innovation rankings.
- Threats: Climate stress, particularly summer heatwaves.
Last updated in July 2025. Explore more city profiles here.
Did you know? Our custom reports complement publicly available rankings by offering a deeper look at your city’s performance and potential. They combine independent benchmarking across key indices with expert community feedback—highlighting how your city is perceived and where it stands out. Designed to support place branding leaders, these reports provide clear, actionable insights to strengthen strategy, positioning, and international reputation.
📊 Want to see an example? Contact us today!
Disclaimer: The information in this article is intended to provide a general overview of Madrid’s economic and cultural landscape and facilitate comparison over time. While we strive for accuracy and completeness, the data is provided “as is” without warranty of any kind. Please verify any information before relying on it for decision-making purposes.
