The World's Top 'Cities to Watch' in 2026
What Makes These Cities Stand Out Beyond Tourism?
A new global report from Oxford Economics has identified five rapidly evolving cities that are gaining attention from travelers and urban experts alike. Released in early 2024, the analysis highlights Toulouse in France, Ho Chi Minh City in Vietnam, and three other emerging urban centers that are undergoing significant cultural, economic, and infrastructural transformation. These cities are being noted not just for tourism potential but for their growing influence on regional innovation and quality of life.
The report emphasizes how shifting work patterns, increased investment in public spaces, and grassroots cultural movements are reshaping these urban environments. In Toulouse, a historic aerospace hub, new tech startups and revitalized riverfront districts are drawing younger residents. Ho Chi Minh City continues to expand its metro system while preserving historic neighborhoods, creating a blend of old and new that appeals to both locals and visitors. Local insights cited in the report point to improved walkability, rising culinary diversity, and community-led urban projects as key drivers of change.
How Are Local Communities Shaping the Future of These Urban Spaces?
Beyond surface-level attractions, the report dives into deeper indicators like employment growth in green industries, housing affordability trends, and access to education and healthcare. Toulouse has seen a 15% increase in renewable energy-related jobs over the past two years, according to regional data referenced in the study. Ho Chi Minh City’s education sector is expanding rapidly, with new international schools and vocational training centers opening to support a growing skilled workforce. These factors, the report argues, are what make the cities not just interesting to visit but increasingly compelling to live in or invest in long-term.
Community involvement emerges as a recurring theme across all five cities. In Toulouse, neighborhood associations have led efforts to convert underused industrial zones into public gardens and co-working spaces. In Ho Chi Minh City, youth-led collectives are organizing pop-up markets and street art festivals that celebrate local identity while attracting international attention. The report quotes urban planners who stress that top-down development alone is insufficient; sustainable growth depends on integrating resident feedback into planning processes. This participatory approach, they say, is helping to avoid the pitfalls of gentrification seen in other global cities.
What criteria did Oxford Economics use to select these cities? The report evaluated cities based on economic growth projections, cultural vitality, infrastructure investment, and quality of life indicators, with input from local experts and residents.
Frequently Asked Questions
Are these cities already popular with tourists? While some, like Toulouse and Ho Chi Minh City, are seeing rising visitor numbers, the report focuses on their potential for sustained growth rather than current tourism rankings.
Will these cities face challenges as they grow? Yes, the report acknowledges risks such as rising housing costs and strain on public services, but notes that proactive planning and community engagement could mitigate these issues.