The top 10 cities for hybrid workers to take a 'workcation'

Have you been seeking a place to work and enjoy leisure activities simultaneously? Look no further.

Budapest has been ranked as the top city for both work and vacation, or "workcation," by International Workplace Group, a flexible and hybrid workspace operator.

According to research conducted on 1,000 hybrid office workers worldwide, the results show that in-house research has been instrumental in providing valuable insights.

Many companies have made hybrid and remote work a permanent arrangement after gaining traction during Covid-19 when offices were temporarily shut down to meet health standards.

The number of people working from home increased five-fold between 2019 and 2023, and 40% of U.S. employees currently work remotely at least one day a week, according to a report published by the Stanford Institute for Economic Policy Research.

With cloud technology accessible anywhere in the world as long as there's a high-quality internet connection, it's no surprise that more individuals are adopting the concept of working while traveling, whether it's for a short period of time at the end of a vacation or for an extended period as a digital nomad, according to Mark Dixon, founder and CEO of International Workplace Group.

The IWG report found that 84% of hybrid workers would either extend or consider prolonging a vacation to work remotely, and 75% said that the freedom of working from anywhere increases their job satisfaction.

Thirty cities worldwide were evaluated by the IWG report based on a 10-point scale in various categories.

• Climate
• Culture
• Accommodation
• Transport
• Food
• Subsistence (cost of a coffee)
• Happiness
• Broadband speed
• Sustainability
• Availability of flexible workspaces

Dixon explained to CNBC Make It how the criteria for assessing the comfort of overseas environments should take into account work responsibilities.

He stated that while basic necessities like housing, transportation, and sustenance are important, there are also significant factors that can greatly affect a worker's productivity, including high-speed internet and access to flexible workspaces.

Budapest was ranked first in this year's survey, receiving high ratings in all categories, including accommodation (9.5/10), transport (9.5/10), sustainability (8.5/10), and broadband speed (8/10).

The Hungarian capital is renowned for its classical architecture, drawing in 12 million international tourists annually, and boasts over 200 museums and galleries, lively neighborhoods, and abundant green spaces, making it an excellent destination for digital nomads, as per the report.

Top 10 cities for a workcation, according to IWG:

1. Budapest
2. Barcelona
3. Rio de Janeiro
4. Beijing
5. Lisbon
6. New York
7. Singapore
8. Jakarta
9. LA
10. Milan

Barcelona, which was the top choice for hybrid workers last year, continues to be a popular destination among them. The city boasts a digital nomad visa, efficient transportation infrastructure, and an affordable cost of living. Additionally, Barcelona offers a vibrant atmosphere, impressive architecture, and nearly constant sunshine, according to the report.

Barcelona received high ratings in transportation (9/10), climate (8.5/10), and accommodation (8.5/10) categories, which assess the affordability of a monthly transport pass, the amount of sunshine hours per year, and the average rent per month, respectively.

This year's list showcased cities in Asia, including Beijing, Singapore, and Jakarta, which ranked among the top 10. Despite dropping a spot, Beijing remained in the top four.

Singapore improved its ranking by 14 places to seventh place, with outstanding scores in broadband quality (10/10) and sustainability (9/10).

Singapore, known for its world-class airport and its status as a global gateway to Southeast Asia, is also recognized as Asia's happiest country for the second year in a row and is set to provide island-wide 5G coverage by 2025, according to IWG.

Dixon stated that this trend will intensify, with more companies adopting WFA policies to enhance employees' work-life balance and boost their appeal as an employer.

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