Mark Stücklin
Madrid’s quality of life is on the rise while Barcelona’s has slipped, according to Deutsche Bank’s latest global city rankings — a tale of two Spanish cities heading in opposite directions.
Deutsche Bank’s Mapping the World’s Prices 2025 report doesn’t just measure what it costs to live in cities — it also tries to measure how good life feels once you get there. Its Quality of Life Index, based on factors like cost of living, pollution, safety, health care, purchasing power, traffic, climate and property prices, offers a subjective but fascinating snapshot of global urban wellbeing.
And this year, Spain’s two biggest cities are heading in opposite directions.
Madrid climbs, Barcelona slips
Madrid emerges as one of the report’s big European winners, leaping 11 places since 2020 to claim a spot in the global top 20 for quality of life. Deutsche Bank attributes the rise to improved safety, relative affordability, and post-pandemic urban renewal, which have helped the capital close the gap with long-time leaders like Copenhagen, Amsterdam and Vienna.
Barcelona, by contrast, has fallen three places to 43rd, sliding further down the table and well behind Madrid. While still highly rated for climate, leisure and culture, the city scores less well on safety, congestion and local purchasing power — three factors that have deteriorated since 2020 according to the report’s composite indicators.
The criteria that make (or break) city life
The Deutsche Bank index combines both hard data and resident sentiment. Its categories include:
- Purchasing power (net salary vs cost of living)
- Safety and pollution levels
- Health care quality
- Property price-to-income ratios
- Traffic and commute times
- Climate satisfaction
Madrid scores solidly across the board, with particular strength in perceived safety, healthcare, and affordability compared to peers. Barcelona continues to excel in lifestyle metrics — sunshine, beaches, and cultural vibrancy — but struggles in areas that directly impact daily comfort and security.
A tale of two cities
The divergence between Spain’s two great cities reflects broader shifts. Madrid’s reputation as an efficient, increasingly cosmopolitan and well-managed capital is gaining ground internationally, while Barcelona — still beautiful and buzzing — faces ongoing challenges with urban management, public safety perceptions, and resident satisfaction.
A reminder: perception matters
The Quality of Life Index is, of course, subjective — Deutsche Bank itself says so. But perception drives reputation, and reputation shapes investment, tourism, and talent attraction. All cities want to be climbing the rankings, not sliding down them.
In 2025, Madrid is a city on the up, while Barcelona has work to do to recover the sparkle it once had not just in the sun, but in the data.
