Canberra has been crowned the World’s Best City for Quality of Life in 2025
Long regarded as Australia’s quiet achiever, Canberra has officially stepped into the global spotlight. According to the newly released Oxford Economics Global Cities Index 2025, Australia’s capital has been named the number one city in the world for quality of life—an accolade that marks a defining moment in the city’s transformation from ‘boring’ bureaucratic centre to world-class lifestyle destination.
Not only did Canberra top the global rankings, it also emerged as the highest-ranking Australian city across four of the six quality of life indicators: income per person, income equality, housing expenditure, and life expectancy.
While it placed second behind Sydney for access to recreation and cultural sites, Canberra fell short on one front: crime rate, where it ranked lowest among Australian cities.
Still, the data paints a clear picture: Canberra has cracked the code for balanced, high-quality urban living.
Senior economist at Oxford Economics, Anthony Bernard-Sasges, explains the reasoning behind Canberra’s top ranking:
“The Australian capital ranks first in the world for quality of life this year, largely driven by the city’s high incomes combined with its low degree of income inequality, thanks to the higher availability of stable and high-paying government jobs than elsewhere.”
Canberra’s economic structure, dominated by public service and research sectors, provides a cushion of stability that many cities envy. These jobs also contribute to relatively equal income distribution—one of the key factors considered in the Global Cities Index.
The city also boasts excellent healthcare, a standout contributor to its impressive life expectancy. And while it might not rival Melbourne or Sydney in the sheer number of cultural or recreational attractions, Canberra punches well above its weight in terms of cultural offerings per capita.
From the National Gallery to small independent theatres and design precincts, there’s more culture here than first meets the eye—just without the crowds.
The 2025 Global Cities Index paints a fascinating picture of what modern livability looks like across the globe.
Alongside Canberra at the top, the list is dominated by smaller, well-organised cities known for their strong social systems, clean environments, and balanced economies. Nordic standouts like Bergen, Oslo, and Linz demonstrate the enduring appeal of Scandinavia’s egalitarian model, while Bern, Basel, and Luxembourg continue to showcase the European tradition of combining wealth with walkability and cultural richness. Singapore is the only major metropolis to break into the top tier, thanks to its world-class infrastructure and low crime rate.
Meanwhile, Paris and Grenoble highlight France’s dual strength in culture and lifestyle, with the latter representing the growing appeal of mid-sized, more affordable European cities. Together, these rankings suggest that the world’s most livable cities in 2025 are those that prioritise equity, sustainability, and quality over sheer scale.
The Top 10 Cities for Quality of Life in 2025
Here’s the full list of cities that made the cut in this year’s Oxford Economics Global Cities quality of life ranking:
- Canberra, Australia
- Bergen, Norway
- Grenoble, France
- Singapore
- Luxembourg
- Bern, Switzerland
- Paris, France
- Linz, Austria
- Oslo, Norway
- Basel, Switzerland
Canberra’s appearance at the top of this list is no small feat, considering the calibre of its peers—cities long celebrated for their beauty, affluence, and livability.
Where to Stay: Canberra’s Premier Luxury Hotels
As Canberra’s global profile has risen, so too has its appeal to high-end travellers and luxury seekers. The city’s accommodation options now rival those of more established tourist hotspots. Whether you’re visiting for business, politics, or pleasure, these standout hotels offer a chic place to stay:
- Ovolo Nishi
A design lover’s dream. Located in the heart of the NewActon precinct, Ovolo Nishi is an artful blend of sustainability, industrial chic, and creature comforts. With its reclaimed timber finishes, in-house art collection, and access to award-winning Monster Kitchen and Bar, this boutique hotel has become synonymous with Canberra’s creative pulse. - Hyatt Hotel Canberra – A Park Hyatt Hotel
Steeped in elegance and history, the Hyatt is the go-to for diplomats, dignitaries, and discerning travellers. Its Art Deco grandeur, manicured gardens, and proximity to Parliament House make it both a retreat and a statement. - Midnight Hotel, Autograph Collection
Trendy, bold, and urban, Midnight Hotel brings international flair to Canberra’s inner north. Located in the buzzing Braddon precinct, it’s within walking distance to artisan cafes, bars, and boutique shopping, making it a perfect base for exploring the city’s modern side.
A Food Scene Worth Travelling For
If Canberra’s quality of life is partly defined by its lifestyle offerings, its food scene is playing a central role. Quietly but confidently, the city has cultivated a culinary culture that now rivals its east coast cousins. Some highlights include:
- Touche, Canberra
A rising star on Canberra’s restaurant circuit, Touche is a modern European bistro that fuses traditional techniques with contemporary flair. Famed for its seasonal dishes and polished yet welcoming atmosphere, it exemplifies Canberra’s matured dining scene. - Aubergine
A stalwart of fine dining in the capital, Aubergine continues to impress with its seasonal degustation menus and minimalist sophistication. A two-hatted restaurant led by chef Ben Willis, it’s ideal for a special night out. - Pilot.
This intimate restaurant in Ainslie is small in size but huge in ambition. Offering an ever-evolving tasting menu and warm, unpretentious service, it’s a favorite among locals and those in the know. - Rebel Rebel
A laid-back but stylish option near the ANU and cultural precincts, Rebel Rebel offers vibrant share plates, a stellar wine list, and a vibe that strikes the perfect balance between refined and relaxed.
Canberra: From Underrated to Unmissable
For years, Canberra was overlooked—often unfairly—as simply the seat of government, devoid of the excitement and style found elsewhere. But today, it’s clear that what the city may lack in flash, it makes up for in balance, beauty, and substance.
Whether you’re a policy wonk, a foodie, an outdoor enthusiast, or simply someone in search of a city that gets life right, Canberra is proving it’s not just Australia’s capital by title—it’s the capital of modern livability.
So next time someone raises an eyebrow at the idea of a weekend in Canberra, tell them this: It’s the best city in the world. Officially.
