Global Power City Index 2025: Tokyo Claims 2nd Place For First Time
Tokyo has ascended to the number two spot—officially overtaking New York who was second in 2023 and 2024—for the first time in the Global Power City Index (GPCI) 2025’s world’s top metropolises. Released on December 17 by the Mori Memorial Foundation’s Institute for Urban Strategies, this year’s report marks a historic shift in the hierarchy of urban powerhouses. While London successfully held onto the crown for the 14th consecutive year, the gap at the very top is significantly narrowing.
Tokyo’s rise is a statistical win that reflects a tangible evolution in how the city is lived in and experienced, driven by surging scores in livability and cultural interaction.
The Nightlife Surprise
Perhaps the most surprising detail for long-term residents is Tokyo’s newfound dominance in the evening economy. Often criticized in the past for a lack of late-night diverse entertainment compared to its Western counterparts, Tokyo globally ranked first in nightlife options.
This leap suggests that the capital’s efforts to bolster—or better promote—the nightlife economy are paying dividends.
Shingo Inoue, researcher at the Institute for Urban Strategies, Mori Memorial Foundation, told GoConnect in an exclusive interview that this evolution serves a critical business function beyond simple leisure.
“Nightlife is not merely a form of entertainment; it functions as a space for serendipitous encounters, cross-disciplinary interaction and informal networking,” he said. “Such environments are particularly essential for entrepreneurs, creators, researchers and investors. In addition, they indirectly enhance a city’s competitiveness in hosting international conferences and events.”
Combined with a post-pandemic tourism boom, this propelled the city to second place in the Cultural Interaction category.
Livability in an Era of Inflation
Tokyo also secured the top spot in livability, a critical factor that helped it edge past New York in the rankings. The report highlights a “tale of two worlds” regarding inflation. Western powerhouses such as New York (third) and London (first) saw their scores dragged down by soaring costs of living, particularly in rent and general price levels.
In contrast, Tokyo remained relatively affordable for a city of its caliber, offering high stability and safety without the drastic price hikes seen elsewhere. For international residents, this validates what is often felt on the ground: Tokyo manages to balance world-class infrastructure with a quality of daily life that is becoming increasingly rare in other global financial hubs.
Green Gains
Another key driver for the GPCI results was the environment category, where Tokyo jumped to seventh place. The city ranked second in the newly added Corporate Sustainability Assessment indicator, reflecting a serious commitment from Japan’s private sector to green initiatives. While London took the top spot for Urban Greenery, Tokyo is closing the gap with improved biodiversity and environmental policies.
The Asian Resurgence
Tokyo wasn’t the only success story in the region. The 2025 index noted a broader East Asian resurgence, with Seoul in South Korea closing in at sixth place and Shanghai entering the top eight for the first time.
The return of international tourists has revitalized these urban centers, contrasting with the inflationary pressures dampening the momentum of some cities in North America and Europe. Other Japanese cities, including Osaka and Fukuoka, also showed upward momentum, hinting that the magnetism of Japanese urban life is growing nationwide.
What This Means for Residents
These rankings signal that Tokyo is successfully evolving from a purely business-centric hub into a more holistic, culturally vibrant and livable global city. This shift directly impacts how the city appeals to international professionals.
“Global talent places importance not only on salary and position, but also on the range of options available for after-work and weekend activities, as well as on safety and convenience in daily life.” Inoue said.
“Cities that offer a high density of dining and cultural experiences, diversity that can be enjoyed both individually and in groups and a high level of safety provide a strong incentive not only for attracting talent but also for retaining it.”
This unique combination of high-density culture and physical security is what sets Tokyo apart from its peers in the top three. Inoue adds that this specific balance appeals to diverse demographics that other cities struggle to capture, saying, “In a global context where vibrant nightlife and safety often present a trade-off, Tokyo’s exceptional balance between the two is likely to attract a wide range of international talent, from single expatriates and those relocating with families to highly skilled female professionals.”
Final Standings Overview
In the final assessment of the GPCI, London retained the top spot despite a decline in its overall score. Tokyo climbed from third to second place, buoyed by its top rankings in livability and nightlife options. New York fell to third place, primarily impacted by the rising cost of living. Meanwhile, Paris is closing the gap with New York, and Singapore remained steady in fifth place.
FAQ
Why did Tokyo beat New York in the Global Power City Index 2025?
Tokyo surpassed New York primarily due to surging scores in livability and nightlife options. While New York suffered from score reductions caused by the high cost of living and inflation, Tokyo maintained high stability and affordability.
Which city is currently ranked number one?
London continues to hold the number one spot for the 14th consecutive year. However, the report notes that the gap between London and the runner-up, Tokyo, is narrowing.
How does inflation affect the city rankings?
Inflation played a major role in the 2025 rankings. Western cities such as London and New York saw their scores negatively impacted by soaring rents and prices. Conversely, Tokyo’s relative affordability amidst global inflation helped secure its #1 ranking in livability.
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