Mark Stücklin
The latest Deutsche Bank report on global prices and quality of life puts Madrid ahead of Barcelona, both in affordability and wellbeing—but neither Spanish city is close to the extremes seen elsewhere in the world.
The Deutsche Bank Research Institute’s Mapping the World’s Prices – 2025 report, now in its ninth edition, tracks the cost of living and quality of life in 69 global cities, offering a deep dive into everything from rent and salaries to cappuccinos, cinema tickets and iPhones. And while most headlines are going to places like Luxembourg, which took the surprise top spot for quality of life, there’s plenty of insight to be drawn from how Spain’s two biggest cities compare both to each other and the rest of the world.
Madrid outperforms Barcelona in key quality-of-life metrics
Madrid ranks 16th globally for quality of life, well ahead of Barcelona in 43rd place. The capital’s relatively good showing is credited to factors like decent healthcare and manageable commute times, while Barcelona scores lower mainly due to a weaker safety rating.
Neither city is especially expensive by international standards—indeed, both sit somewhere around the middle of the pack. But despite its beach and arguably better weather, Barcelona still trails Madrid in most of the report’s quality-of-life indicators.
Housing costs still relatively affordable
When it comes to housing, Madrid and Barcelona might feel expensive to locals, but globally they remain reasonably priced. Madrid is ranked 34th for the cost of buying a property in the city centre, and Barcelona comes in cheaper still at 45th. Rental prices tell a similar story: Madrid ranks 29th with an average of $2,811 (around €2,400) per month for a three-bedroom flat, while Barcelona is close behind at 32nd with $2,738 (€2,360).
While prices have risen sharply—by over 50% in both cities in the past five years—they still fall well short of the eye-watering rents seen in New York, Singapore or Boston, which top the global rental charts.
Salaries and spending power—still some way to go
Salaries in Spain remain on the lower end of the spectrum in global terms. Madrid and Barcelona rank 41st and 43rd respectively for post-tax incomes, averaging $2,193 (€1,889) and $2,082 (€1,793) per month. That’s far behind top earners in Geneva, Zurich and San Francisco, where net salaries can exceed $6,000 a month.
That said, daily expenses in Spain help balance the books. Beer is still cheap (around $1.40 or €1.20), gym memberships cost a fraction of what they do in cities like New York, and public transport is relatively affordable—especially in Barcelona, where a monthly pass costs just $29 (€25), compared to $58 (€50) in Madrid and a staggering $244 (€213) in London.
The global view: surprises at the top and bottom
Beyond Spain, the big surprise of the report is Luxembourg, which has dethroned cities like Zurich and Geneva to take the global quality-of-life crown. With high incomes, free public transport, low pollution and short commutes, the tiny Grand Duchy punches well above its weight—though housing remains a hot political issue even there.
At the other end of the affordability spectrum, cities like El Cairo, Delhi and Bogotá remain the cheapest for housing and basic services. Meanwhile, a sharp rise in costs and incomes has pushed US cities like New York, Boston and San Francisco to the top of the global rankings for prices—levels not seen since the report’s inception in 2012.
Conclusion
Madrid’s strong showing in the Deutsche Bank ranking confirms its status as one of Europe’s more liveable capitals, offering a relatively high quality of life without the steep costs found in the likes of London or Paris. Barcelona still offers a good lifestyle—especially for sun-seekers—but lags behind Madrid in several key areas, especially safety and cost-efficiency. Neither city is a bargain anymore, but both remain attractive compared to many of their global peers.
The report includes dozens of detailed tables comparing prices, incomes, and lifestyle metrics across 69 global cities—an invaluable resource for anyone curious about how the world’s major urban centres stack up in 2025.
