City Ranking 2025: Potsdam Has the Best Infrastructure of All Cities

Mayor Noosha Aubel says: “Many residents will resonate with these results. Our city is truly a place where people love to live. It is a city of science, education and community. Taking the top spot in the new Infrastructure Index reinforces our commitment as a unified city—administration, politics and civil society—to shaping a place where progress and joy of life are felt every day. We rank very well in key fields such as science, infrastructure and quality of life. Yet the ranking also highlights the challenges we share with many other cities: high property prices, rising rents, insufficient new housing. We will continue working with federal and state partners to create more affordable homes.”

Once a year, IW Consult, WirtschaftsWoche and ImmoScout24 examine what it’s like to live and work in Germany’s major cities. Their nationwide ranking compares all 71 cities with more than 100,000 inhabitants.

The ranking evaluates cities across labor market performance, economic structure, real estate conditions and quality of life (level ranking), as well as their development over the past five years (dynamic ranking). New this year is the IW Infrastructure Index, developed specifically for the study and created in the context of the Special Fund for Infrastructure and Climate Neutrality (SVIK).

Potsdam ranks No. 1 in the new IW Infrastructure Index

The newly calculated Infrastructure Index measures how cities perform in research and education, transport and digital networks, and climate resilience. Potsdam leads the index nationwide.

• It stands out with an exceptionally high density of universities (1st place).
• It ranks 2nd for the condition of motorway and federal road bridges.
• The number of STEM research institutions and the quality of fiber-optic coverage are also above average (each 5th place).

Comparison of the current status quo

The level ranking evaluates current living, housing, working and economic conditions in German cities based on 51 indicators. Rental prices and marketing times indicate housing-market attractiveness. Childcare availability and visitor numbers serve as markers of quality of life. Labor-market strength is measured using indicators such as commuter ratios and the proportion of engineers. Economic competitiveness is reflected, among other things, in tax revenue.

In the level ranking, Potsdam performs strongly: with 19th place, it achieves the best result among all major cities in eastern Germany.

Potsdam offers a high quality of life

The dynamic ranking compares changes in 36 indicators over five years, helping identify trends and assess the impact of policy measures. It reveals which cities have gained ground in the competition for talent and business—and which have lost momentum.

In the dynamics category, Mainz once again leads the field. Potsdam follows in 12th place and scores particularly well in quality of life, ranking third nationwide. The city also makes significant advances in economic development (12th place) and labor-market performance (14th place).

Further Information in German

Read news on the website of the State Capital Potsdam

IW Consult – Städteranking 2025

WirtschaftsWoche (Paywall) Einzeldossiers zum Städteranking 2025 

WirtschaftsWoche (PayWall) Hier wohnt die Hoffnung – Deutschlands beste Städte