What are the best neighborhoods in Madrid?

Authored by the expert who managed and guided the team behind the Spain Property Pack

Yes, the analysis of Madrid's property market is included in our pack

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries (Spain, Portugal, Italy, Germany, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Spain. If you'd like to learn more about us, you can check our presentation page.

Fact-checked and reviewed by our local expert

✓✓✓

Anna Siudzinska 🇵🇱

Real Estate Agent

Anna Siudzińska is a skilled business strategist and experienced manager, specializing in sales, marketing, and corporate growth. With a wealth of experience in international markets, she possesses in-depth knowledge of Madrid's real estate sector, guiding clients toward profitable investments and market advantages.

What's your monthly rent budget in euros?

Your monthly rent budget in Madrid directly determines which neighborhoods are accessible to you, with significant price variations across the city.

As of June 2025, Madrid's rental market shows striking differences between districts. Premium areas like Salamanca command €30-34 per square meter monthly, meaning a 70-square-meter apartment costs €2,100-2,380 monthly. Central trendy neighborhoods like Malasaña and Chueca range from €22-25 per square meter, translating to €1,540-1,750 for the same apartment size.

Mid-range options include Chamberí and Retiro at €25-28 per square meter, while emerging areas like Tetuán offer better value at €18-22 per square meter. For budget-conscious renters, peripheral neighborhoods like Vallecas (€16-20 per square meter) and Vicálvaro (€14-16 per square meter) provide the most affordable options.

A realistic budget breakdown: studios in central areas start from €1,100 monthly, one-bedroom apartments range €1,500-2,500, while two-bedroom properties vary from €1,800-3,500 depending on location and quality. These prices include basic utilities but exclude internet, which adds €30-50 monthly.

It's something we develop in our Spain property pack.

How important is proximity to public transport for your daily routine?

Madrid's exceptional public transport network makes proximity to metro stations crucial for daily convenience and property values.

The Madrid Metro operates 13 lines with over 300 stations, running from 6:05 AM to 2:00 AM daily. Properties within 5 minutes walking distance of metro stations typically command 10-15% higher rental prices. The average commute time in Madrid is 62 minutes, but metro accessibility significantly reduces this.

Zone A covers all central neighborhoods and most attractions, with monthly passes costing €54.60. Areas well-served by multiple metro lines include Sol (Lines 1, 2, 3), Gran Vía (Lines 1, 5), and Nuevos Ministerios (Lines 6, 8, 10). These transport hubs offer maximum connectivity but come with premium rental prices.

Bus networks complement metro coverage with 200+ lines operating from 6:00 AM to 11:30 PM, plus night buses (Búhos) until 6:00 AM. Single journey costs are €1.50 for buses and €1.50-2.00 for metro depending on zones crossed.

Neighborhoods like Salamanca, Chamberí, and Malasaña offer excellent metro access, while emerging areas like Vallecas and Hortaleza are expanding their connections through ongoing infrastructure projects.

What's the average rental price per square meter in each neighborhood?

Madrid's rental prices per square meter vary dramatically across neighborhoods, reflecting location, amenities, and investment potential.

How long does it typically take to commute to the city center from each area?

Commute times to Madrid's city center (Puerta del Sol) vary significantly based on neighborhood location and transport connections.

Central neighborhoods offer the shortest commutes: Sol and Centro are already in the heart, while La Latina, Malasaña, and Chueca require just 5-15 minutes by metro or walking. These areas provide maximum convenience for professionals working in Madrid's business district.

Mid-distance neighborhoods like Salamanca, Chamberí, and Retiro offer 15-25 minute commutes via metro, providing an excellent balance between accessibility and living space. These areas are particularly popular with families and established professionals.

Emerging neighborhoods require longer commutes: Tetuán averages 20-25 minutes, Vallecas takes 30-35 minutes, while peripheral areas like Vicálvaro and Villaverde require 35-45 minutes to reach the center. However, these areas compensate with larger apartments and better value for money.

Peak hours (7:30-9:30 AM and 6:00-8:00 PM) can add 10-15 minutes to metro journeys due to increased crowding and frequency adjustments. Night commutes rely on bus networks after 2:00 AM metro closure, potentially doubling travel times.

Madrid's Cercanías suburban trains connect outer areas efficiently, running every 10-30 minutes with direct connections to central stations like Atocha and Chamartín.

Don't lose money on your property in Madrid

100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Download Now

What's the crime rate per 1,000 residents in each neighborhood?

Madrid maintains relatively low crime rates compared to other European capitals, though safety levels vary considerably across neighborhoods.

Overall, Madrid ranks as the 21st safest city globally according to The Economist's 2021 ranking, with a general crime index of 26.6 out of 100. The city experiences significantly lower violent crime rates than cities like Barcelona or Paris, with most incidents being petty theft and pickpocketing in tourist areas.

Safest neighborhoods include Salamanca, Chamberí, and Retiro, where crime rates are below 20 per 1,000 residents annually. These affluent areas benefit from strong police presence and community security measures. Central areas like Sol and Gran Vía experience higher reported incidents (25-30 per 1,000) mainly due to tourist-related pickpocketing rather than violent crime.

Moderate-risk areas include Malasaña, Chueca, and La Latina (20-25 per 1,000 residents), where occasional petty theft occurs but violent crime remains rare. Lavapiés reports slightly higher rates (25-30 per 1,000) due to its diverse population and nightlife concentration.

Peripheral neighborhoods like Vallecas and Villaverde show crime rates of 30-35 per 1,000 residents, though these are primarily property crimes rather than violent incidents. Carabanchel requires more caution, particularly at night, with rates approaching 35-40 per 1,000 residents.

Women report feeling safe walking alone in central Madrid even at night, with dedicated police hotlines (091 for emergencies) providing 24-hour support in multiple languages.

What's the average age and income level of residents in each area?

Madrid's neighborhood demographics reflect distinct lifestyle preferences and economic stratification across the city.

Salamanca attracts mature professionals aged 35-55 with household incomes averaging €70,000-90,000 annually. This upscale district houses executives, lawyers, and established entrepreneurs seeking luxury living near premium shopping and cultural venues.

Chamberí and Retiro appeal to families and middle-aged professionals (30-50 years) with incomes ranging €50,000-70,000 annually. These neighborhoods offer excellent schools, parks, and traditional Spanish lifestyle amenities.

Malasaña and Chueca attract younger demographics (25-40 years) including artists, designers, and tech workers with incomes between €30,000-50,000 annually. These creative hubs offer vibrant nightlife and alternative culture scenes.

La Latina draws culture enthusiasts and young professionals (28-45 years) with similar income ranges €35,000-55,000, attracted by authentic Spanish atmosphere and proximity to historic sites.

Tetuán and Vallecas house working families and first-time buyers (25-45 years) with household incomes €25,000-45,000 annually. These emerging neighborhoods offer better value for growing families seeking space and community.

Madrid's overall average household income sits at €50,200 annually, with 43% of residents classified as wealthy compared to 28% nationally. The city maintains lower poverty rates (15%) versus the national average (21%).

How many international schools, coworking spaces, or hospitals are nearby?

Madrid's amenities distribution varies significantly across neighborhoods, affecting both lifestyle quality and property investment potential.

International Schools: Madrid hosts 22 international schools, concentrated in affluent northern areas. Salamanca and Chamberí provide access to premium institutions like American School of Madrid and King's College Madrid. Central areas like Sol and Retiro offer proximity to International School San Patricio and Lycée Français. Budget neighborhoods often require 30-45 minute commutes to quality international education options.

Coworking Spaces: Madrid's startup ecosystem has generated 150+ coworking facilities. Malasaña and Chueca lead with 25+ spaces each, including Impact Hub Madrid and Talent Garden. Salamanca offers 15+ premium business centers, while emerging areas like Tetuán are developing their coworking infrastructure with 5-8 new facilities annually.

Healthcare Facilities: Madrid's healthcare system ranks among Europe's best. Central neighborhoods provide access to Hospital Universitario La Paz and Hospital Clínico San Carlos within 15 minutes. Salamanca residents access prestigious Ruber Internacional and Hospital Universitario La Princesa. Peripheral areas like Vallecas and Vicálvaro rely on Hospital Universitario de Getafe, requiring 20-30 minute commutes for specialized care.

Cultural Amenities: Museums concentration favors central areas - Retiro neighbors Prado Museum, Reina Sofía, and Thyssen-Bornemisza. Malasaña offers alternative galleries and creative spaces, while Salamanca provides luxury shopping along Serrano Street.

It's something we develop in our Spain property pack.

What's the average size (in square meters) of available rentals within your budget?

Madrid rental apartment sizes vary inversely with neighborhood prestige, offering different value propositions across budget ranges.

In premium areas like Salamanca, €2,000 monthly typically secures 60-70 square meters in historic buildings with high ceilings and premium finishes. These apartments prioritize location and luxury over space, appealing to professionals valuing prestige and convenience.

Mid-range neighborhoods like Chamberí and Retiro offer better space efficiency: €1,500 monthly provides 70-85 square meters with modern amenities. These areas balance location convenience with reasonable square footage for families or professionals requiring home offices.

Trendy central areas like Malasaña and Chueca provide 65-80 square meters for €1,500, though historic building constraints may limit layout flexibility. These properties attract young professionals prioritizing lifestyle over space optimization.

Emerging neighborhoods offer maximum space value: €1,200 in Tetuán or Vallecas secures 80-100 square meters with modern layouts and parking possibilities. These areas appeal to families prioritizing space and value over central location.

Budget-friendly periphery areas like Vicálvaro provide 90-120 square meters for €1,000-1,200 monthly, including outdoor space and parking. These properties suit families or remote workers requiring maximum space efficiency.

Madrid's average apartment size decreased to 82 square meters in 2025, down from 87 square meters in 2015, reflecting urban densification and rising land values in desirable areas.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Spain versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

How walkable is each neighborhood based on walk score data?

Madrid's walkability varies dramatically between compact central districts and sprawling peripheral developments, directly impacting daily convenience and quality of life.

Highest walkability scores (85-100 - Walker's Paradise) belong to Sol, La Latina, Malasaña, and Chueca. These neighborhoods provide daily necessities within 5-minute walks, including supermarkets, pharmacies, restaurants, and entertainment venues. Residents rarely need transportation for routine activities.

Very walkable areas (70-84 - Very Walkable) include Salamanca, Chamberí, and Retiro. These districts offer most amenities within 10-minute walks, though some specialized services may require short metro trips. Wide pedestrian-friendly streets and numerous parks enhance walking appeal.

Somewhat walkable neighborhoods (50-69 - Somewhat Walkable) encompass Tetuán, Arganzuela, and emerging areas. Basic services exist within walking distance, but car or public transport becomes necessary for shopping variety and entertainment options.

Car-dependent areas (25-49 - Car-Dependent) include Vallecas, Vicálvaro, and most peripheral neighborhoods. These areas require planned trips for most activities, though local centers provide essential services within walking distance.

Madrid's city center maintains exceptional pedestrian infrastructure with dedicated walking zones around Puerta del Sol and Gran Vía. The BiciMAD bike-sharing system complements walkability with 2,000+ electric bikes available throughout central districts at €2 per hour.

How many cafes, restaurants, and parks are there within a 10-minute walk?

Madrid's neighborhood amenity density directly correlates with rental prices and lifestyle satisfaction, varying dramatically across districts.

Central Districts (Sol, La Latina, Malasaña): Offer exceptional density with 50+ restaurants, 20+ cafes, and 3-5 parks within 10-minute walks. La Latina alone features over 100 tapas bars in its historic core, while Malasaña provides diverse international cuisine and trendy coffee shops. Plaza Mayor and Retiro Park anchor central green spaces.

Upscale Areas (Salamanca, Chamberí): Provide 30-40 high-quality restaurants, 15+ cafes, and 2-3 well-maintained parks. Salamanca emphasizes fine dining and luxury shopping, while Chamberí offers traditional Spanish establishments. Parque del Buen Retiro serves both neighborhoods excellently.

Emerging Neighborhoods (Tetuán, Vallecas): Feature 15-25 local restaurants, 8-12 neighborhood cafes, and 1-2 community parks. These areas prioritize family-friendly establishments and local services over tourist-oriented venues. New developments include planned green spaces and commercial centers.

Peripheral Areas (Vicálvaro, Villaverde): Offer 8-15 restaurants, 5-8 cafes, and 1-2 parks, typically concentrated around transportation hubs or shopping centers. These neighborhoods emphasize practical amenities over entertainment variety.

Madrid's Sunday El Rastro flea market in La Latina attracts 100,000+ weekly visitors, while Chueca's gay district hosts Pride celebrations drawing 2+ million participants annually. These events significantly boost local business activity and rental demand.

What's the air quality index or pollution level in each zone?

Madrid's air quality shows significant improvement following recent environmental policies, though variations exist across neighborhoods based on traffic density and industrial proximity.

Overall, Madrid maintains moderate air quality with an average AQI of 45-65 (Moderate level) throughout 2025. The city implemented strict low-emission zones (Madrid Central) in the city center, significantly improving air quality in Sol, La Latina, and Malasaña since 2018.

Best air quality areas include Retiro, Chamberí, and residential parts of Salamanca, benefiting from park proximity and reduced traffic density. These neighborhoods typically maintain AQI levels of 35-50 (Good to Moderate), making them ideal for families with children or individuals with respiratory sensitivities.

Central areas like Sol and Gran Vía experience moderate pollution (AQI 50-70) due to tourist activity and commercial density, though strict vehicle restrictions have substantially improved conditions. The pedestrianization of major streets has reduced pollution exposure for residents.

Peripheral neighborhoods near major highways (Vallecas, Villaverde) sometimes experience higher pollution levels (AQI 60-80) during peak traffic hours, though these areas benefit from better ventilation and lower overall density.

Madrid's extensive park system, including 40+ major green spaces, provides air quality buffers throughout the city. The recent expansion of bike lanes and electric bus fleets continues improving environmental conditions across all neighborhoods.

How much do utility costs and local taxes vary between neighborhoods?

Utility costs and local taxes in Madrid show minimal variation between neighborhoods, as most services operate under municipal or regional pricing structures.

Property tax (IBI) represents the main variation, calculated on cadastral values that reflect neighborhood property prices. Salamanca properties pay 2-3 times more than Vallecas equivalents. Luxury buildings in premium areas include higher maintenance fees covering concierge services, elevators, and common area upkeep.

It's something we develop in our Spain property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Sources

1. Real estate market Madrid - Indomio
2. The best neighborhoods in Madrid - HousingAnywhere
3. 12 hottest real estate areas in Madrid in 2025 - Investropa
4. Cost of Living in Madrid - Numbeo
5. Where To Stay in Madrid: 9 Best Areas & Neighbourhoods - Time Out
6. Transport in Madrid - Wikipedia
7. Crime in Madrid - Numbeo
8. Madrid Population 2025 - World Population Review
9. Cost of Living in Madrid - Relocate.me
10. Average monthly rent in Madrid by neighborhood - Moving2Madrid