"But economic turmoil, political tension and high unemployment in some European countries and high levels of unemployment have continued to be problematic in the region."
Canadian cities dominated rankings in the Americas region, with Vancouver at number five retaining the top spot and Honolulu at 28 the most pleasant U.S. urban centre.
New Zealand's Auckland at number three is still atop the Asia Pacific region's charts, while Dubai at 73 gets best marks in the Middle East and Africa.
But that region also has 15 cities in the bottom 20, including Lagos, Nigeria; Bamako, Mali; Khartoum, Sudan; and N'Djamena, Chad. Iraq's capital Baghdad was ranked lowest in the world.
"The ongoing turmoil in many countries across North Africa and the Middle East has led to serious security issues for locals and expatriates," Parakatil said.
"Many countries continue to experience violence through political demonstrations that have sometimes developed into massive uprisings and led to serious instability within the region."
This is a far cry from Vienna, which has held the top spot in the Mercer rankings since 2009.
Yet the city is not without complaints.
Jennifer Stepper, an American designer who has lived in Vienna for 18 years, noted that visiting friends often comment about how unfriendly waiters and shopkeepers are. But it no longer bothers her
"Now I realise it is just the way of the Viennese. Like the rest of us, they have their quirks."