A city can only be included in the Happy City Index if reliable, measurable, and comparable data are available. We have no doubt that there are many beautiful places to live around the world, as well as cities that deserve to be part of our analysis. However, in some cases, we have been unable to find sufficient information on their achievements and performance.

Human happiness depends on many factors. A sense of security, family relationships, and the fulfilment of dreams are only a small part of a much larger picture. Cities also play a role in ensuring the happiness of their residents. On the one hand, this involves investments aimed at fostering interpersonal relationships and implementing social policies, including inclusive ones.

The desire to constantly improve the quality and standard of living is a well-established fact. For each community, cultural or historical conditions may lead to different factors determining favourable living conditions, such as the political system, religiosity, or family traditions. Nonetheless, individual aspirations are generally focused on survival and achieving set goals—both short-term needs, such as nutrition, thirst, or sleep, and long-term needs related to spiritual and creative fulfilment. Each person, given their unique potential, should identify their own areas of need that can make them happier and more fulfilled. However, these aspirations are continually transformed by the changing environment around them.

Challenges caused by climate change and progressive urbanisation mean that each city can be seen as a dynamic organism that must actively respond to its evolving environment, with all residents influencing its overall functioning through their actions.

People are the creators of their cities, which is why involving them in urban decision-making and participation is crucial. This involvement is a fundamental aspect of effective governance. An organism in which all its elements are actively engaged in the common good can be considered not only healthy but also focused on happiness. Education policy also plays a key role in preparing future generations to manage resources responsibly for the benefit of all.

We know happiness is influenced by many factors, and a wealth of research backs this up. Every year, we work hard to objectively assess what truly matters to city dwellers, using this insight to evaluate their happiness. This process also helps us refine our understanding of happiness. By analysing objective data, open information, and conducting interviews with residents, we’ve been able to identify and assess cities across 26 different areas, neatly organised into six key categories - Themes.

A city is shaped by its residents, who impart an individual character through their activities. Their efforts contribute to the city’s economic development and the creation of new spaces tailored to residents’ needs. Engagement and participation enable them to implement changes that align with the needs and expectations of its people in happy cities.

In a city where happiness is a priority, the focus is primarily on people and their needs. First and foremost, this involves addressing the level of awareness and knowledge, as well as the quality of the educational system. This system should provide the necessary competencies and qualifications. Research indicates that acquiring a certain level of qualifications and skills is crucial, including a readiness for lifelong learning, access to modern educational resources of the twenty-first century, higher education opportunities, and the number of residents with higher education. Additionally, the digitisation of schools, the level of digital and mathematical skills, and the ability to communicate in foreign language are important factors. It is also essential to foster the development of digital competencies and general technological knowledge among residents.

A city where happiness is fostered also provides inclusive solutions for all social groups. This includes concepts related to cosmopolitanism, openness to diversity, social and ethnic pluralism, and broadly understood social inclusion. This approach considers various groups of residents, including the digitally excluded and people with disabilities. These aspects of openness to diversity can be broadly referred to as social inclusion, which reflects the general readiness of residents to accept differences and promotes social cohesion.

Involving residents in city decision-making processes is crucial for the proper development of the city and for ensuring a sense of happiness. This involvement can take various forms, including activities that engage different social groups, organised by non-governmental organisations, as well as individual consultations with beneficiaries and stakeholders of implemented solutions. While involving residents requires their openness and knowledge, it is also the city’s role to collect and consider these opinions in decision-making processes. Therefore, citizen participation and broad partnerships with different communities are vital. Transparency in actions, management, and data is also essential. Authentic, adequate, and widely accessible information about the city’s operations and decisions should be made available in a transparent and easily understandable manner to all interested parties.

A key issue in the area of Environment is the comprehensive management of natural resources, including renewable energy. This encompasses both water management and electricity consumption. It also involves addressing pollution, both broadly and in detail, which relates to the quality of air and water, as well as emissions of carbon dioxide and nitrogen oxides. Similarly, waste and sewage management are crucial factors, with the level of recycling serving as a fundamental indicator of a city's development towards being a city of happy residents.

The Environment area addresses various issues that cities must tackle, taking into account both resident involvement and the activities organised and implemented by city authorities. Problems such as air pollution and waste management are particularly important in light of research by the United Nations Department of Economic and Social Affairs, which predicts that the global urban population will nearly double between 2015 and 2050. This increase will significantly raise the demand for public transport services and exacerbate pollution-related issues. It also necessitates the rational, equitable, and sustainable management of natural resources to support the growing population.

Among the factors analysed in the ECONOMY area, hard data such as Gross Domestic Product (GDP) and related productivity are particularly important. GDP represents the total value of goods and services produced over a specific period. After adjusting for inflation, real GDP is obtained, which reflects actual physical production. Productivity, another key indicator, is crucial for economic growth and is defined as the ratio of GDP to the volume of expenditures. It measures how effectively productive inputs, such as labour and capital, are utilised to achieve a given level of output. This data is directly related to the organisation of work and the ability to maximise the potential of inputs, including human resources.

In our analysis, we also examine some of the most important data—specifically, the type of salary one can expect in a given city compared to the national average. Often, certain goods and services, such as taking a holiday in a chosen location within the country or accessing national resources like the higher education system, are entirely independent of one’s specific location within the same country. Therefore, we also measure the extent to which a city provides conditions that facilitate better access to nationally available services.

Additionally, the median annual salary in a given country helps assess how working conditions enable access to globally available services. Residents of certain cities simply have the opportunity to earn higher wages, giving them greater access to national services. At the same time, residents of specific countries benefit from better access to globally provided services.

This, too, is measured within the Index, as it directly impacts the overall ranking of each city.

The final element that reflects the ECONOMY of happy cities is the international presence of companies. This encompasses their ability to compete globally and collaborate with entities from other countries. Such international engagement can enhance efficiency by, for example, leveraging the benefits and intellectual assets of being part of global cooperation networks and exchanging knowledge.

The involvement of the business sector is crucial for implementing development policies aimed at creating a happy city. This impact is reflected not only in unemployment rates and the ability to provide a stable environment for residents pursuing their life goals but also in the industries involved, the readiness to seek innovative solutions, and the capacity to compete on a global scale. However, the most critical factor is the intrinsic value of the employees themselves, including their openness, creativity, and entrepreneurship.

One important characteristic of smart city dwellers is their readiness and ability to engage in lifelong learning. This is reflected not only in their active participation in governance-related activities, which form the foundation of the city’s development, but also in their effectiveness in enhancing business efficiency, enabling enterprises to compete globally and deliver tangible benefits to residents. This can be measured by employment levels, labour market flexibility, and the benefits funded by personal and corporate taxes, which are often the primary sources of revenue for covering urban expenses.

Within the HEALTH theme, SAFETY plays a crucial role in assessing both crime-related incidents and the number of road accidents. This area goes beyond measuring recorded criminal activity and traffic incidents—it also evaluates access to medical services, including the number of doctors relative to the city's population and the proportion of residents covered by health insurance. Health coverage ensures access to medical care in case of emergencies requiring hospitalisation as well as for routine healthcare needs.

An essential component of SAFETY is also the availability of vaccination programmes for children. In this regard, we do not assess whether vaccinations are mandatory but rather whether they are provided free of charge. Our analysis indicates that in many countries where vaccination is not compulsory, the vaccination rate remains exceptionally high, highlighting strong public awareness. However, it is crucial that decisions about vaccinations stem from informed parental choice rather than financial constraints. This is why ensuring free access to vaccinations in selected areas is so important.

Intelligent transport systems, mobile applications, and other solutions that enhance traffic management, including user-friendly e-payment systems for public transport, are essential features of a city where happiness is a key growth factor. The application of new information and communication technologies in transport is still an innovative and positive development, significantly improving the quality and efficiency of the system. Creativity and ingenuity are therefore crucial for discovering new solutions in this field, enhancing public transport, and directly impacting the city’s quality of life. This approach should also lead to the optimisation and overall evaluation of public transport, including its accessibility, efficiency, and organisation.

In addition to the use of information and communication technologies for managing traffic and public transport, the accessibility of public transport at local, national, and international levels is a crucial factor in the development of cities where residents are happy.

All indicators have been categorised into 26 areas of urban activity. These areas carry different weights and levels of significance, which we have assigned based on our research, findings, and analyses.

In the #2025 edition of the Happy City Index, we have introduced negative scores for the first time. Our goal has always been to associate happiness with positive outcomes, which is why, until now, we have rewarded cities with points, allowing them to achieve progressively higher scores. However, with the introduction of the HEALTH area, we recognised that certain aspects should also be assigned negative points. This encourages cities not only to gain points through good urban policies but also to avoid losses resulting from poor practices.