The annual ranking put out by the British magazine Monocle also placed Dusseldorf in the top 20. Tokyo came in second. No US city made the top 25, with picturesque Vancouver the only North American city in the mix.
Image: picture-alliance/dpa/A. Gebert
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Munich took top honors this year, knocking Tokyo off its top perch.
The analysts acknowledged the high cost of living in the Bavarian capital but insisted residents get their money's worth, citing the city's "excellent infrastructure with a booming economy" and "proximity to nature with appreciation for culture."
It also cites Munich's public swimming pools and accompanying saunas, observing that most "wouldn't feel out of place at a top-notch private gym."
One day in Bavaria
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The city of 1.5 million also boasts a 3.5 percent unemployment rate. And contrary to many other cities that rate is even lower among young people. The economy hums on automobile production, machine-building, IT and biotech industries.
Tokyo and Vienna each slipped a notch to No. 2 and No. 3, respectively. Tourism continues to boom in Tokyo, according to the ranking overview, as the city gears up for hosting the 2020 Olympic Games.
Still the city of 9.5 million wins high marks for its first rate "food, retail, transport and all-round efficiency," and "for showing that big cities don't have to be harsh and impersonal."
Vienna was criticized for its limited retail hours but otherwise won plaudits for its Baroque beauty, affordable rent, excellent transport, food and cultural life.
Zurich jumped four spots to the No. 4 position and Copenhagen advanced one spot to No. 5.
Last year Munich and Berlin tied for the No. 3 spot, but while Munich jumped to the top, Berlin slipped to No. 6. A much-needed airport has been beset by cost overruns and poor planning. It was supposed to open in 2011 but is now not expected to open before 2019.
Still, the Monocle review calls Berlin "one of the most palpably exciting cities in the world," awash in creativity, not only in art and culture but also in entrepreneurship.
Berlin's Kaiser-Wilhelm Memorial ChurchImage: picture alliance/DUMONT Bildarchiv/S. Lubenow
Madrid advanced three spots to No. 7, and Hamburg moved up a notch to No. 8.
Hamburg: Elbphilharmonie effect
Hamburg has seen a rapid growth in tourism; fed, in part, by its newly opened concert hall — the Elbphilharmonie, in 2017. The northern city on the river Elbe now surpasses Berlin in the number of overnight stays.
The city now bans diesel-powered vehicles and is undertaking a number of redevelopment projects.
Hamburg's Elbphilharmonie towers over neighboring apartment blocksImage: picture-alliance/dpa/A. Heimken
Melbourne and Finland's Helsinki round out this year's top 10.
Vancouver was the only North American city to make the list, coming in at No. 15, thanks in large part to its natural beauty.
The small German city of Dusseldorf — home to about 600,000 people — in North Rhine-Westphalia came in at No. 18. A comparatively low cost of living, a vibrant art scene and a thriving telecom sector give the city its appeal, according to the review.
Despite its small size Dusseldorf is home to Germany's third-busiest airport, surpassed only by those in Frankfurt and Munich. The city is also undertaking an €80 million ($94 million) upgrade of its public transport system.
Still, the city was faulted for not being more welcoming to businesses and tourists.
Bavaria is Germany's most popular tourist destination. In addition to highlights such as Neuschwanstein Castle, the Zugspitze Peak and Munich, visitors also value the diversity and charm of the rural regions.
Image: picture-alliance/dpa/L. Mirgeler
The countryside
The Tölzer Land region, located south of Munich and stretching as far as the Austrian border, captivates with its real Bavarian picture-book idyll. Making it a perfect destination for a day trip.
Image: picture-alliance/dpa/L. Mirgeler
One mountain, two lakes
The Herzogstand is over 1,700 meters (5577 ft) high and offers a fantastic view of Kochelsee (left) and Walchensee (right) lakes. It was the favorite mountain of King Ludwig II of Bavaria. These days the mountain summit can be easily reached by cable car, which means that in the summer months tourists flock up to the top. Too many now, according to some locals.
Image: picture-alliance/dpa/M. Balk
Bavarian Caribbean
Walchensee lake is up to 190 meters deep and one of Bavaria's most scenic water sports areas. Turquoise colored water and white sandy beaches - ensure that the lake is also known as the Bavarian Caribbean. And it is absolutely quiet: there is no motor-boating allowed on the lake.
Image: picture-alliance/chromorange/B. türk
A water sports hotspot
Walchensee lake is an ideal spot for divers, surfers and kiters. On a summer day, if you drive along the shore, you can see the surfers queuing up at the entry points. The sheltered location in a valley basin with steeply towering mountains ensures pleasant mild temperatures on the one hand, and ideal thermal conditions on the other.
If you want to cross from Walchensee to Kochelsee lake, you have to take the path over the Kesselberge mountains. The Kesselberg Road winds in narrow curves over the mountain for over 9 kilometers (5.6 mi). Motorcyclists love this track. Unfortunately there were so many accidents that motorcycles were banned from riding on weekends and overtaking is forbidden on the entire track.
Image: picture-alliance/dpa/M. Schrader
Nature and art
Lake Kochelsee lies 200 metres below Lake Walchensee and is nestled in a vast marshland. Nature and art are closely linked here. At the beginning of the 20th century, the lake was the meeting point of the "Blauer Reiter" group of Expressionist artists. The Franz Marc Museum at Kochelsee is worth a visit. It is dedicated to the work of the great artist and his contemporaries.
Image: picture-alliance/chromorange/B. Türk
Summer in Murnau
During the summer months Franz Marc and his artist friends moved to the neighboring town of Murnau. The young Expressionists met in the home of Wassily Kandinsky and his partner Gabriele Münter. Today the residential house is a museum and memorial place.
Image: picture-alliance/C. Koenig
Bad Tölz spa town
The spa town on the Isar River gave the region its name - Tölzer Land. With just under 18,000 inhabitants, Bad Tölz is one of the largest cities in the region. From Munich the train takes about an hour to reach Bad Tölz, and from here it heads for the mountains. The pretty old town and the nature around it make Bad Tölz a perfect starting or finishing point for day trips.
A refreshing alternative to a mountain hike is a tour along the Isar. The river shows its original, wild character only in a few places. You can get a small idea of the untamed beauty of this river on a rafting tour between Bad Tölz and Lenggries.
Image: picture-alliance/dpa/F. Mächler
Tradition obliges
Always impressive - Bavarians in festive costume. If you happen to be in Bavaria on Corpus Christi, the chances of meeting them are not bad. Corpus Christi is one of the highest holidays in the Catholic church year. Like here in Walchensee faithful Catholics march through their villages and towns all over Bavaria in festive processions.
Image: DW/A. Termèche
Crowning finish
What would a day in the mountains be without a visit to a mountain tavern? You don't have to worry about the basic supply of alpine delicacies. A hearty or sweet snack is readily available even at an altitude of 2,000 meters. It tastes best after a strenuous climb. An added bonus is that you can then confidently ignore calorie counting. So go ahead and enjoy, you've earned it.
