Adelaide is bursting with potential but must act quickly to ensure affordability and liveability credentials don’t erode.
The Committee for Adelaide’s second global benchmarking report reveals that Adelaide has made positive progress in innovation, business appeal, population growth and reputation. But declining productivity, spending on R&D, transport infrastructure, connectivity and housing present ongoing challenges, putting Adelaide’s long-held advantages of lifestyle and affordability at risk.
The 2025 Benchmarking Adelaide Report, compiled by leading urban intelligence firm, The Business of Cities, was commissioned by the Committee for Adelaide, with the support of JLL, Mitsubishi Motors Australia, RAA, Hames Sharley, AEDA and the City of Adelaide, to gain an outside-in perspective of Adelaide’s strengths, weaknesses and future opportunities.
CLICK HERE TO DOWNLOAD THE 2025 BENCHMARKING ADELAIDE REPORT.
Comparing performance among 20 similar-sized international cities – from Porto to San Diego – that share common characteristics and challenges, the report assesses how Adelaide stacks up globally in areas such as economy, business dynamics, skills, transport, vibrancy, sustainability, brand and reputation.
The report finds that Adelaide continues to excel as a hub for international education, high-impact research and momentum to decarbonise. Adelaide performs most strongly in the following categories:
- 3rd strongest city for range of university specialisms
- 3rd for highest share of high-impact research
- 4th fastest for growth in venture capital over the last 5-years
- Most attractive city within its peer group for construction costs
- One of the fastest growing peer cities based on forecast population growth
- Recognition for quality-of-life, easy-going culture, creative sector, events and festivals, natural beauty and exemplary food-and-wine.
Adelaide’s human capital drivers are positive, with the 3rd strongest demographic ingredients for a high skilled economy among its peers and share of jobs in typically higher-paying sectors growing at a faster rate than others. Adelaide’s universities, specialist academic capability and growing defence, health and creative sectors remain key strengths, with higher education and student appeal providing a significant boost to Adelaide’s global reputation.
However, Adelaide continues to see newcomers outnumbered by those who leave to travel, live and work elsewhere. Adelaide has work to do to be front of mind for international investors or organisers looking to Australia.
Other areas that Adelaide is being outpaced by its peers include:
- Down to 12th for productivity, with Adelaide’s productivity gap sitting at 20% compared to the national average, larger than most other peer cities.
- Down 4 spots to 9th for ‘liveability, affordability and wellbeing’, with other cities moving faster on housing production with Adelaide falling to the bottom 8% for homeownership affordability in the English-speaking world
- 3rd highest share of income spent on rent, after San Diego and Auckland
- Bottom 3rd for internet connection speeds
- 2nd last for new green buildings
- Below average for walkability to key services and amenities
- Last among 8 measured peers for cycling infrastructure
While Adelaide’s innovation ecosystem is gathering pace, rates of R&D spend constrain Adelaide’s potential, with 25% less investment in research and development occurring in Adelaide compared to American peers and 50% less then faster-growing European cities. Start-ups and growth firms requiring capital continue to struggle.
Citywide congestion and car reliance trends are both downward, with Adelaide residents spending more time driving than most. Adelaide’s public transport system is not keeping pace with the city’s wider-growth model and active transport potential is also not being realised.
Other cities are also catching up to Adelaide in areas such as sustainability and resilience, with Adelaide falling four spots to 13th. While South Australia’s uptake of renewables is setting the pace for decarbonisation and the energy transition, Adelaide still emits more total greenhouse gases per person than most peer cities. EV infrastructure and adoption in the metropolitan area also remains behind.
The report suggests that Adelaide should look to San Diego and Toulouse for inspiration on capitalising on the local defence sector, while Auckland and Austin prove that housing density can be done well.
CLICK HERE TO DOWNLOAD THE 2025 BENCHMARKING ADELAIDE REPORT.
Quotes Attributable to Committee for Adelaide CEO, Sam Dighton:
“Adelaide is moving on many metrics, including innovation, business appeal and decarbonisation. Our enviable climate and natural beauty are the envy for cities across the world and Adelaide’s universities, research capabilities, creative sector, events, food scene and cultural landscape continue to grow in stature and reputation.”
“In other measures, however, Adelaide is being outpaced. Productivity growth continues to lag, R&D investment is stifling growth and other cities are decarbonising faster.”
“Housing unaffordability, poor public transport infrastructure, congestion and active transport challenges are negatively impacting Adelaide’s appeal, and we risk losing people, and their skills, if we do not act quickly.”
Quotes Attributable to Dr Tim Moonen, Co-Founder & Managing Director, The Business of Cities:
“This international perspective reveals that Adelaide has been quietly and purposefully setting up many of the building blocks to become a more innovative, resilient and ultimately successful city for generations to come.”
“Leadership across Adelaide now has the chance to be even more proactive and committed about the kind of infrastructure, governance and storytelling the city will need to make the most of the opportunities that will come its way.”
“The last 30 years of global experience tells us that liveable cities have no divine right to success. To reproduce liveability over many cycles requires a spirit of reinvention, restlessness, and willingness to forge deeper models of partnership.”
Quotes Attributable to Shaun Westcott, President and CEO, Mitsubishi Motors Australia Limited:
“Valencia may have ten times more EV chargers than Adelaide, but Adelaide with 44% of homes and businesses already powered by rooftop solar, could have an as yet untapped advantage. We can leverage it through bi-directional charging technology – using solar to charge your car, and your car to power your home.”
“Adelaide’s productivity has declined since the previous report, ranking us 12th out of 20. True productivity isn’t about working longer or harder – it’s about working smarter. By embracing new technology, training, automation and AI, we can work better, faster, and more efficiently.”
“To become global leaders in Industry 5.0, we must turn our focus to innovation. As the Benchmarking report notes, ‘Adelaide does all the right things on paper,’ but we’re falling short on talent and innovation outcomes. What we need now is a clear, shared, vision to address this – jointly developed by communities, industry, academia, and government. The future belongs to those who innovate boldly and strategically – let’s work together to achieve this, right here in Adelaide.”
Quotes Attributable to Ben Parkinson, Managing Director, JLL:
“The 2025 Benchmarking Adelaide Report presents a mixed picture for our property sector. While our construction costs and population growth forecasts are positive, declining affordability and livability are concerning.”
“This report is a call to action for the property industry to innovate in sustainable, affordable housing and modern workspaces. At JLL, we see these challenges as opportunities to shape Adelaide’s future, ensuring we maintain our competitive edge in the global urban landscape.”
Quotes Attributable to Michael Sedgman, CEO, City of Adelaide:
“The City of Adelaide welcomes the updated benchmarking results.”
“The results reinforce the world-competitive standing of Adelaide’s university sector, the growth in venture capital investment, and Adelaide’s high-quality events and festivals, much of which are centered in the city and the Adelaide Park Lands.”
“It is also noteworthy that Council has laid the foundations for Adelaide’s improvement, in areas such as housing affordability, walkability, and cycling infrastructure.”
“Council has adopted a residential population target of 50,000 by 2036, which is supported by a number of infrastructure investments and our City Plan, which overlays where dense residential growth can be accommodated and supported by community amenities and access to usable open space.”
“Council is also actively investing in code amendment work, to ensure land-use planning rules support residential growth while preserving valued built character and heritage, as well as improvements to the Adelaide Park Lands Trail and cycling infrastructure connections with neighbouring suburbs to improve active transport options into the city.”
Quotes Attributable to Caillin Howard, Managing Director, Hames Sharley:
“Welcoming, vibrant and intelligent, the City of Adelaide continues to excel as a place of innovation and a hub for academic and cultural thinking at the highest level. We are proud to play our part, with Hames Sharley’s ongoing background in research bolstering Adelaide’s intelligence economy and development.”
“Acknowledging that there is much fine-tuning to continue this journey, let’s think bigger. We must unite to make better progress – where planning is government supported, where private investors are incentivised and where the public sector is mobilised to support development, benefiting every community.”
“As designers, reports like Benchmarking Adelaide 2025 are invaluable. They empower our team to work where we’re needed the most and to ensure that any investment maximizes value for money. Ultimately, we want to make Adelaide the best place to work, play and live.”
Quotes Attributable to Emily Perry, General Manager, Community & Corporate Affairs, RAA:
“RAA is proud to once again support the Benchmarking Adelaide Report, which provides valuable insights to inform stronger government decision-making and investment. By learning from peer cities, we can build on our strengths and respond to the challenges to unlock Adelaide’s potential.”
“From transport and active mobility to housing affordability and sustainability, the report highlights issues that directly shape how South Australians move, live and thrive – all of which are central to RAA’s advocacy agenda.”
“We continue to advocate for a safer, more sustainable and liveable South Australia. That means investing in transport infrastructure, accelerating the rollout of EV charging networks in urban areas and ensuring active and public transport systems keep pace with population and housing growth.”
“It is critical that infrastructure is planned alongside with new housing, rather than as an afterthought. Getting this right is essential to keeping Adelaide connected, inclusive and globally competitive.”
