As cities compete in an increasingly mobile talent economy, Professor José Antonio Ondiviela, director, Citizen-Centric Intelligent Cities Research Institute, Universidad Francisco de Vitoria, explains why urban success factors must now consider how magnetism, liveability and affordability shape where people choose to live and work.
There’s an argument that, in the last two decades, urban success has been framed as a technological challenge, one that could be solved through infrastructure, data and software. However, as the fourth industrial revolution matures, and as work, capital and people become increasingly mobile, a different question has come to the fore; not how smart a city is, but how attractive it is.
The 2025 edition of the Worldwide Observatory for Attractive Cities, authored by Professor José Antonio Ondiviela, reflects this changing mindset. Rather than treating technology as the end goal, the Observatory places people – specifically talent – at the centre of urban competitiveness. In Ondiviela’s words, “cities today are no longer just places to live. They are products competing globally for talented people”.
In an era where remote and hybrid work are normalised, where skilled professionals can choose between continents, and where demographic pressures are reshaping labour markets, the ability to attract and retain talent has become a defining metric of city success. The Observatory argues that urban prosperity is now driven less by geography and more by human choice.
Ondiviela’s work starts from a simple observation – that economic value today is generated by innovation density rather than physical proximity to resources. “Cities are still the engines of growth,” he explains, “but the logic has changed. Wealth comes from ideas, creativity, and human interaction”.
This reframes the purpose of technology in cities. Rather than being a goal in itself, technology becomes an enabler of human development. The Observatory builds on the “three Ts” of urban prosperity – technology, talent and tolerance – but updates them for a more fluid, global context.
“Cities change over time. History is built and destroyed in cities. So magnetism is not static”
Technology, in this model, is valuable only insofar as it improves how people live, work and participate in the city. Talent is seen as a self-reinforcing loop – talented people are attracted to places where other talented people already are. Tolerance underpins everything, shaping whether a city feels open, safe and welcoming to global citizens while maintaining its local identity.
What makes the Observatory distinctive, though, is how it translates these principles into a practical framework for understanding city choice.
At the heart of the 2025 edition is a psychological insight – choosing a city is a deeply human decision, shaped by both emotion and rational calculation. Ondiviela describes it as being “very similar to choosing a partner or making a major life investment”.
“If you are young, skilled and globally mobile, you have real choice,” he says. “There are around 1.7 billion millennials in this situation. They can choose the city where they want to develop their potential”.
That choice unfolds in two stages. First comes the emotional response, driven by perception, image and feeling. Only after that does the rational evaluation begin. This duality is captured in the Observatory’s core equation:
City attractiveness = city magnetism × city profitability
The model recognises that cities can be efficient but unloved, or beautiful but unaffordable. True attractiveness emerges only when both dimensions reinforce one another.
City magnetism represents the emotional filter through which people initially assess cities. “This is the left brain,” Ondiviela explains. “It’s about whether you like a city, whether it feels exciting or inspiring, whether you’ve visited it, seen it in films, heard about it from friends, or associate it with culture or events”.
This is why cities invest so heavily in global visibility, from major sporting events to cultural branding. Magnetism is difficult to measure precisely because it is emotional, subjective and often unconscious. To address this, the Observatory introduces the idea of a city timeline.
“Cities change over time,” Ondiviela says. “History is built and destroyed in cities. So magnetism is not static”.
The framework breaks magnetism into three chronological components – past, present, and future.
“People don’t just choose a city for what it is now. They choose it for what it promises to become”
The past is identity. It includes history, heritage, culture, gastronomy, climate, geography, and global narratives – films, music, literature, social media and blogging. All of these elements shape the mental image people hold of a city, often long before they visit.
The present reflects how the city feels today. This includes competitiveness, creativity, ethics, equality, social cohesion and everyday quality of life. It is about what motivates people when they wake up each morning and engage with the city.
The future is strategy. This captures whether a city projects confidence about where it is going – its investment in innovation, technology, smart city programmes, education and human capital. “People don’t just choose a city for what it is now,” Ondiviela notes. “They choose it for what it promises to become”.
Together, these three layers create the emotional image that determines which cities people are willing to consider seriously.
Once a city passes the emotional test, the decision becomes rational. “This is the right brain,” Ondiviela says. “The question becomes very simple – what does this city give me, and what do I have to pay to live here?”
The Observatory refers to this as city profitability, framed as an implicit citizenship contract between the individual and the city. The city provides services, opportunity and infrastructure. In return, the citizen pays through taxes, cost of living and opportunity cost.
On the performance side, city services are grouped into 10 areas that are both intuitive and data-rich – including mobility, safety, healthcare, education, connectivity, employability, culture and environmental conditions. These services define the lived experience of the city.
On the cost side, the Observatory focuses on net purchasing power. This goes beyond headline salaries to account for taxes, housing costs and everyday affordability. Ondiviela often illustrates this using a variation of the Big Mac Index. “It’s the same product everywhere,” he says. “But the price tells you how much your money is really worth”.
A professional with the same qualifications may earn more in Zurich than in London, pay lower taxes, but face much higher living costs. What ultimately matters is how much life that income can buy. Housing, in particular, has become the most powerful constraint on urban profitability.
The 2025 Observatory draws on more than 100 indicators sourced from international organisations and statistical bodies. These indicators populate both magnetism and profitability, creating a comprehensive comparative model.
Weighting, however, remains the most sensitive issue. “There is no single best city,” Ondiviela acknowledges. “The best city for me may not be the best city for you”.
Life stage, family situation and personal priorities all influence how people value different services. Education matters more to young families, less to retirees. Career density may outweigh affordability early on, then reverse later.
To address this, the Observatory uses expert surveys to inform weighting, particularly for city services. These surveys were first conducted in 2018 and repeated in 2024, allowing the Observatory to track how priorities evolve over time.
The latest edition highlights several important shifts in global urban attractiveness.
Cities such as Dubai have risen sharply in the rankings, driven by strong economic performance, low taxation and rapid improvement in service quality. “Dubai scores extremely well on the rational side,” Ondiviela notes, “and it’s increasingly compensating on quality of life, equality and services”.
By contrast, many European and US cities are clustered in the middle of the rankings. Inflationary pressure, housing shortages, security concerns and policy uncertainty have all eroded profitability, even where magnetism remains strong.
“You can live one hour from a global capital, enjoy its connectivity and culture when you need it, and still have a 15-minute city for daily life”
Security has emerged as the single most important priority since 2018. Mobility also ranks highly, reflecting a fundamental truth of cities – “a city only works if people can meet”, as Ondiviela puts it.
Sustainability, while still valued, has slipped in relative importance. The report suggests this is partly due to realism. Net-zero targets are expensive, complex and politically difficult, especially when benefits are invisible to citizens. “People appreciate electric buses,” Ondiviela says. “But retrofitting public buildings is harder to explain”.
In response, resilience has risen sharply. Flooding, heatwaves, energy security and climate adaptation are immediate, tangible risks. They are felt directly and demand action.
One of the most striking findings is the growing attractiveness of intermediate and secondary cities. As iconic global cities become increasingly gentrified and unaffordable, talent is dispersing.
“You can live one hour from a global capital, enjoy its connectivity and culture when you need it, and still have a 15-minute city for daily life,” Ondiviela explains. Improved transport, new mobility models, and emerging technologies such as eVTOLs and advanced rail are changing how distance is measured. “Distance is no longer kilometres,” he says. “It’s time”.
This is reshaping metropolitan regions, expanding their functional boundaries and redistributing talent across wider urban ecosystems.
The 2025 Worldwide Observatory for Attractive Cities delivers a clear message to urban leaders. Technology alone is no longer enough. Smartness is the baseline, not the differentiator.
The cities that will succeed are those that understand themselves as platforms for human potential – balancing magnetism with profitability, identity with opportunity, ambition with affordability.
As Ondiviela puts it, “cities must start treating their citizens as talented customers. If they don’t, those customers will simply choose somewhere else”.
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