Asian cities gain ground in global competitiveness race: BCG

Shenzhen led in speed of change, whilst Shanghai and Central Asian cities narrowed the gap in livability.

Asian cities are gaining ground in global urban competitiveness as the pace of change becomes a key factor in attracting residents and capital, according to a Boston Consulting Group (BCG) report.

BCG said cities are no longer competing mainly on infrastructure, but on how well they turn urban assets into everyday benefits such as saved time, smoother services, better experiences, and stronger prospects.

The report assessed 80 cities across more than 200 indicators, covering speed of change, economic opportunities, livability, social capital, and engagement with government.

Cities in China, the Middle East, and Central Asia recorded some of the fastest improvements, whilst Western cities continued to lead in economic opportunities and livability.

Shenzhen ranked first globally for speed of change, followed by Riyadh, Tashkent, and Doha. BCG said the top 10 in this category were dominated by Middle Eastern and Chinese cities, reflecting the pace and scale of changes pursued in these markets.

In livability, European cities still led, with Zurich, London, and Oslo taking the top three spots. However, BCG said Shanghai and Central Asian cities are rapidly closing the gap, with Shanghai ranking 14th in the category.

Among developing megacities, Guangzhou led as the most balanced city, supported by above-average fundamentals, high speed of change, and strong resident advocacy. BCG also noted that cities in India and Southeast Asia, whilst still constrained by fundamentals, scored highly for speed of change.

In the established powerhouse category, Chinese cities such as Shanghai and Shenzhen benefited from high speed of change, social capital, and strong advocacy, although they still lagged on some fundamentals.

The report also said Singapore stood out among global cities for balancing income and equality, alongside Helsinki and Madrid.

BCG said housing affordability and mobility remain key challenges for cities globally. Commute times rose 6% across cities, partly due to a 7.5% increase in the number of cars on the road since 2023.

The report said city governments will need to sustain momentum for change whilst responding to shifting resident needs, including hybrid work, automation, aging populations, housing affordability, congestion, and demand for more connected urban living.