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
If you're wondering what it actually costs to rent in Madrid in 2026, you're in the right place.
We break down average rents by apartment size, neighborhood, and tenant type, using the freshest data available.
This article is updated regularly to reflect the latest market conditions in Madrid.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Madrid.
Insights
- Madrid rents have jumped roughly 11% year-over-year heading into 2026, making it one of the fastest-rising rental markets in Spain right now.
- A well-priced apartment in Madrid typically rents within 7 to 20 days, while overpriced units can sit on the market for two months or more.
- Studios in central Madrid often command a per-square-meter premium of 10% to 15% over larger apartments due to high demand from young renters and expats.
- The gap between Salamanca (around 28 euros per square meter) and outer districts like Villaverde (around 13 euros per square meter) shows just how wide the price spread is across Madrid neighborhoods.
- Peak rental demand in Madrid hits in August and September, driven by the academic calendar and job relocations after summer holidays.
- Long-term rental vacancy in Madrid city sits around 2% to 3%, which is extremely tight by European standards.
- Expats and foreign-born residents now represent one of the three largest tenant groups in Madrid, pushing demand in neighborhoods like Salamanca, Chamberi, and Chamartin.
- Air conditioning has become almost non-negotiable for Madrid rentals, and units without it often rent at a noticeable discount during summer months.
- Madrid's IBI property tax rate dropped to 0.414% for 2026, offering landlords slightly lower carrying costs compared to previous years.
- Seasonal and temporary rentals are growing in Madrid, which shifts some supply away from long-term renters and keeps pressure on traditional lease prices.
What are typical rents in Madrid as of 2026?
What's the average monthly rent for a studio in Madrid as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Madrid is around 800 euros (approximately 840 USD or 800 EUR), based on typical units of 25 to 35 square meters.
However, studio rents in Madrid can realistically range from 700 euros to 1,050 euros per month (735 to 1,100 USD), depending on where you look and what condition the apartment is in.
The main factors that push studio rents up or down in Madrid include the neighborhood (central areas like Salamanca or Centro cost more), whether the unit is furnished, and building features like an elevator or air conditioning.
What's the average monthly rent for a 1-bedroom in Madrid as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Madrid is around 1,150 euros (approximately 1,210 USD or 1,150 EUR), based on typical units of 40 to 55 square meters.
Realistically, 1-bedroom rents in Madrid range from 950 euros to 1,500 euros per month (1,000 to 1,575 USD), covering most of what you'll find on the market today.
The cheapest 1-bedroom apartments in Madrid tend to be in outer districts like Villaverde, Usera, or Puente de Vallecas, while the most expensive ones cluster in Salamanca, Centro, and Chamberi.
What's the average monthly rent for a 2-bedroom in Madrid as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Madrid is around 1,700 euros (approximately 1,785 USD or 1,700 EUR), based on typical units of 65 to 85 square meters.
The realistic range for 2-bedroom apartments in Madrid spans from 1,350 euros to 2,300 euros per month (1,420 to 2,415 USD), depending on location and apartment quality.
You'll find the cheapest 2-bedroom rentals in Madrid in neighborhoods like Carabanchel, Villa de Vallecas, or Moratalaz, while the priciest options are in Salamanca (particularly Recoletos and Goya), Centro (Justicia and Cortes), and Chamberi (Almagro).
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Madrid.
What's the average rent per square meter in Madrid as of 2026?
As of early 2026, the average rent per square meter in Madrid is around 23 euros (approximately 24 USD or 23 EUR) per month.
Across different neighborhoods, the rent per square meter in Madrid ranges from roughly 13 euros in outer districts like Villaverde to nearly 28 euros in premium areas like Salamanca.
Compared to other major Spanish cities, Madrid's rent per square meter is among the highest in the country, similar to Barcelona and well above cities like Valencia or Seville.
Properties in Madrid that push rent per square meter above average typically feature air conditioning, a renovated kitchen and bathroom, an elevator, outdoor space like a balcony, or a prime location near metro stations.
How much have rents changed year-over-year in Madrid in 2026?
As of early 2026, rents in Madrid have increased by approximately 10% to 12% compared to one year ago.
The main factors driving rent increases in Madrid this year include strong demand from young professionals and foreign-born residents, limited new rental supply, and the growing popularity of seasonal rentals that reduce long-term inventory.
This year's rent growth in Madrid is broadly in line with the trend from 2025, which also saw double-digit annual increases, meaning the market has stayed tight rather than cooling down.
What's the outlook for rent growth in Madrid in 2026?
As of early 2026, we expect rents in central Madrid to grow by 6% to 9% over the year, with outer districts and metro-area suburbs seeing growth of 4% to 8%.
The key factors likely to push rents higher in Madrid include continued strong demand from young adults who cannot afford to buy, a growing expat population, and persistently limited rental supply in desirable areas.
Neighborhoods in Madrid expected to see the strongest rent growth in 2026 include Arganzuela (near Delicias and Legazpi), Tetuan (especially Cuatro Caminos), and spillover suburbs like Leganes and Getafe where affordability-seekers are relocating.
Risks that could change this outlook for Madrid include potential changes to rent control policies, an unexpected increase in new rental supply, or an economic slowdown that reduces household formation and relocation activity.
We have made this infographic to give you a quick and clear snapshot of the property market in Spain. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Madrid as of 2026?
Which neighborhoods have the highest rents in Madrid as of 2026?
As of early 2026, the three neighborhoods with the highest average rents in Madrid are Salamanca (around 28 euros per square meter, or 29 USD), Centro (around 27 euros per square meter, or 28 USD), and Chamberi (around 26 euros per square meter, or 27 USD).
These Madrid neighborhoods command premium rents because they offer excellent walkability, historic architecture, high-end retail and dining, strong transit connections, and proximity to business districts.
The typical tenants renting in these high-rent Madrid neighborhoods include expats on corporate packages, senior professionals, and affluent couples or individuals who prioritize location and lifestyle over space.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Madrid.
Where do young professionals prefer to rent in Madrid right now?
The top three neighborhoods where young professionals prefer to rent in Madrid are Malasana (in the Universidad area), Justicia (commonly called Chueca), and La Latina in Centro.
Young professionals in these Madrid neighborhoods typically pay between 1,000 and 1,400 euros per month (1,050 to 1,470 USD) for a 1-bedroom apartment, depending on the exact street and building condition.
What attracts young professionals to these Madrid neighborhoods is the vibrant nightlife, walkable streets full of cafes and restaurants, excellent metro access, and a lively social scene that matches their lifestyle.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Madrid.
Where do families prefer to rent in Madrid right now?
The top three neighborhoods where families prefer to rent in Madrid are Retiro (especially around Ibiza and Nino Jesus), Chamartin (particularly Nueva Espana and Hispanoamerica), and Hortaleza (including Sanchinarro and Valdebebas).
Families renting 2 to 3 bedroom apartments in these Madrid neighborhoods typically pay between 1,600 and 2,400 euros per month (1,680 to 2,520 USD), with newer developments in Hortaleza sometimes offering better value for space.
What makes these neighborhoods attractive to families in Madrid is the combination of larger apartments, proximity to parks like El Retiro, lower street noise, and a sense of community and safety.
Top-rated schools near these family-friendly Madrid neighborhoods include Colegio Estudio (near Retiro), Liceo Frances (in Chamartin), and several international schools in the Hortaleza and Chamartin areas.
Which areas near transit or universities rent faster in Madrid in 2026?
As of early 2026, the three areas near transit hubs or universities that rent fastest in Madrid are Moncloa and Arguelles (near Universidad Complutense), Nuevos Ministerios and Azca (a major business and transit hub), and Atocha and Delicias (multi-line metro and commuter rail connections).
In these high-demand Madrid areas, well-priced rental properties typically stay listed for just 7 to 15 days before being rented, compared to 20 to 30 days in less connected neighborhoods.
The rent premium for properties within walking distance of a metro station or university campus in Madrid is typically 50 to 150 euros per month (52 to 157 USD) above comparable units further from transit.
Which neighborhoods are most popular with expats in Madrid right now?
The top three neighborhoods most popular with expats in Madrid are Salamanca (especially Recoletos and Castellana), Chamberi (particularly Almagro and Trafalgar), and Chamartin (including El Viso and Hispanoamerica).
Expats renting in these Madrid neighborhoods typically pay between 1,400 and 2,500 euros per month (1,470 to 2,625 USD) for a 1 to 2 bedroom apartment, depending on size and specific location.
What attracts expats to these Madrid neighborhoods is the combination of international schools nearby, English-friendly services, elegant streets, easy airport access, and a sense of safety and quality of life.
The expat communities most represented in these Madrid neighborhoods include Americans, British, French, German, and Latin American professionals, often working in finance, tech, or multinational corporations.
And if you are also an expat, you may want to read our exhaustive guide for expats in Madrid.
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Who rents, and what do tenants want in Madrid right now?
What tenant profiles dominate rentals in Madrid?
The top three tenant profiles that dominate the rental market in Madrid are young adults (aged 25 to 35) who have delayed homeownership, foreign-born residents and international workers, and students or early-career sharers looking for affordable rooms.
Young adults represent roughly 40% to 45% of Madrid's rental demand, foreign-born residents account for about 25% to 30%, and students or sharers make up around 15% to 20% of the market.
Young adults in Madrid typically seek 1 to 2 bedroom apartments in lively neighborhoods, expats often look for furnished 2-bedroom units in upscale areas, and students usually search for rooms in shared flats near universities.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Madrid.
Do tenants prefer furnished or unfurnished in Madrid?
In Madrid, roughly 55% to 60% of long-term tenants prefer unfurnished apartments (typically with a kitchen installed), while 40% to 45% prefer furnished units, especially among expats and short-term renters.
The rent premium for a furnished apartment in Madrid is typically 100 to 200 euros per month (105 to 210 USD) compared to an equivalent unfurnished unit in the same neighborhood.
Tenant profiles that prefer furnished rentals in Madrid include expats on temporary assignments, students, and professionals relocating for work who want a move-in-ready solution without buying furniture.
Which amenities increase rent the most in Madrid?
The top five amenities that increase rent the most in Madrid are air conditioning, an elevator (especially in older buildings), a renovated modern kitchen, a balcony or terrace, and secure parking.
Air conditioning in Madrid typically adds 50 to 100 euros per month (52 to 105 USD), an elevator adds 30 to 70 euros (31 to 73 USD), a renovated kitchen adds 40 to 80 euros (42 to 84 USD), a balcony adds 50 to 100 euros (52 to 105 USD), and parking adds 80 to 150 euros (84 to 157 USD).
In our property pack covering the real estate market in Madrid, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Madrid?
The top five renovations that get the best ROI for rental properties in Madrid are installing or upgrading air conditioning, modernizing the kitchen, renovating the bathroom, improving windows and insulation, and adding built-in storage.
Installing air conditioning in Madrid costs 1,000 to 2,500 euros (1,050 to 2,625 USD) and can increase rent by 50 to 100 euros monthly; a kitchen renovation costs 3,000 to 8,000 euros (3,150 to 8,400 USD) and adds 40 to 80 euros monthly; a bathroom update costs 2,000 to 5,000 euros (2,100 to 5,250 USD) and adds 30 to 60 euros monthly; window upgrades cost 2,000 to 4,000 euros (2,100 to 4,200 USD) and add 20 to 40 euros monthly; and storage improvements cost 500 to 1,500 euros (525 to 1,575 USD) and add 10 to 30 euros monthly.
Renovations that tend to have poor ROI in Madrid and should be avoided include luxury finishes that exceed the neighborhood standard, swimming pools in buildings without existing ones, and overly personalized design choices that limit tenant appeal.
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 strong is rental demand in Madrid as of 2026?
What's the vacancy rate for rentals in Madrid as of 2026?
As of early 2026, the estimated vacancy rate for long-term rental properties in Madrid city is around 2% to 3%, which means the market is very tight.
Vacancy rates in Madrid vary by neighborhood, ranging from under 2% in high-demand areas like Salamanca, Centro, and Chamberi to around 4% to 5% in some outer districts like Villaverde or Villa de Vallecas.
The current vacancy rate in Madrid is well below the historical average of 5% to 7% seen in more balanced market conditions, reflecting the ongoing supply shortage.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Madrid.
How many days do rentals stay listed in Madrid as of 2026?
As of early 2026, the average rental property in Madrid stays listed for about 15 to 25 days before being rented, though this varies widely by price and condition.
Well-priced, move-in-ready apartments in central Madrid neighborhoods often rent within 7 to 15 days, while overpriced or poorly maintained units can stay on the market for 45 to 60 days or longer.
Compared to one year ago, days-on-market in Madrid has remained stable or even shortened slightly, as demand continues to outpace supply in most desirable areas.
Which months have peak tenant demand in Madrid?
The peak months for tenant demand in Madrid are August and September, driven by the start of the academic year and the wave of job relocations after summer holidays.
Seasonal demand in Madrid is heavily influenced by the university calendar (students searching in late summer), corporate relocation cycles (often timed to September), and the general Spanish pattern of moving after August vacations.
The months with the lowest tenant demand in Madrid are typically December and early January, when holiday activity slows down the rental market, followed by a secondary lull in midsummer July.
Buying real estate in Madrid can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Madrid as of 2026?
What property taxes should landlords expect in Madrid as of 2026?
As of early 2026, landlords in Madrid should expect to pay annual property tax (IBI) of roughly 400 to 800 euros (420 to 840 USD) for a typical apartment, depending on its cadastral value.
The realistic range of annual IBI in Madrid goes from about 250 euros (262 USD) for smaller units in lower-value areas to over 1,200 euros (1,260 USD) for large or prime-location properties.
Property taxes in Madrid are calculated by applying the IBI rate (0.414% for 2026) to the property's valor catastral (cadastral value), which is an official assessed value typically much lower than market value.
Please note that, in our property pack covering the real estate market in Madrid, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What utilities do landlords often pay in Madrid right now?
In Madrid, landlords most commonly pay for community fees (gastos de comunidad), the IBI property tax, and building insurance, while tenants typically cover their own electricity, gas, water, and internet.
Community fees in Madrid typically cost landlords 50 to 150 euros per month (52 to 157 USD) depending on building size and amenities like a doorman or elevator, and building insurance runs about 150 to 300 euros per year (157 to 315 USD).
The common practice in Madrid for long-term rentals is that tenants pay all consumption-based utilities directly, while landlords handle fixed property costs; however, for furnished or temporary rentals, some landlords include utilities in the rent to simplify the arrangement.
How is rental income taxed in Madrid as of 2026?
As of early 2026, rental income in Madrid (and all of Spain) is taxed as part of your personal income tax (IRPF), with marginal rates ranging from 19% to 47% depending on your total taxable income.
Landlords in Madrid can deduct expenses like mortgage interest, repairs, community fees, IBI, insurance, and depreciation from their gross rental income, and qualifying long-term residential leases may benefit from a reduction on the net rental income (the exact percentage depends on the contract and conditions under current rules).
A common tax mistake landlords in Madrid make is assuming the old 60% blanket reduction still applies to all rentals, when in fact the rules changed after 2024 and now depend on factors like whether the property is in a "tensioned" housing zone or meets specific affordability criteria.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Madrid.
We made this infographic to show you how property prices in Spain compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Madrid, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| INE (Spain) - Housing Lease Reference Index | It's Spain's national statistics office, and this index is the official framework for rent updates under Spanish housing law. | We used it to anchor the official framework for rent updates in 2026. We also used it to explain why market rent and contract rent updates can diverge. |
| MIVAU - SERPAVI Reference System | It's the Spanish housing ministry's official reference system for rental price ranges. | We used it as a government benchmark to sanity-check market levels. We also used it to describe how official reference ranges differ from actual listing prices. |
| BOE (Official State Gazette) | BOE is the legal source of record in Spain for regulations and official resolutions. | We used it to back up what is legally meant by the reference index system used for rent updates. We also used it to keep the article accurate on the legal mechanics in 2026. |
| MIVAU - Rent Update Calculator | It's an official government tool designed specifically for rent update calculations. | We used it to explain how contract rent revisions are capped or updated in practice. We also used it to separate rent update rules from new lease market rent. |
| Banco de España - Rental Market Paper | It's Spain's central bank, and this paper compiles evidence-based analysis of the rental market and who rents. | We used it to describe tenant profiles (young people, foreign-born residents) and the structural drivers of demand. We also used it to support the "why rents are rising" narrative beyond portal data. |
| Eurostat - Housing Rents Update | Eurostat is the EU's official statistics agency with standardized methods across countries. | We used it to triangulate that rent growth is not only a Madrid story and to set a wider European context. We also used it as a credibility cross-check against local portal indicators. |
| idealista - Madrid Rent Report | idealista is Spain's largest housing portal, and its data reports are widely cited with a clear methodology. | We used it as our main market rent thermometer for Madrid in late 2025, which we roll forward into January 2026. We also used its district breakdown to name real high-rent areas inside Madrid. |
| Fotocasa - Rental Price Index | Fotocasa is a major Spanish property platform with a long-running, regularly published index. | We used it to cross-check the direction and pace of rent growth seen on idealista. We also used it to avoid single-source bias when giving 2026 estimates. |
| Observatorio del Alquiler - Methodology | It's a formal research collaboration (foundation plus university) that explains how demand pressure and absorption metrics are measured. | We used it to justify how we estimate market tightness (demand pressure and time-to-rent concepts). We also used it to translate technical indicators into simple, renter-friendly takeaways. |
| Observatorio del Alquiler - Barometer | It's the public-facing release of the barometer results from the same research initiative. | We used it to support the "supply down, pressure up" story going into 2026. We also used it as a qualitative check on what portals show month to month. |
| Ayuntamiento de Madrid - IBI Announcement | It's the city government itself, publishing the official local tax parameters for 2026. | We used it to estimate landlord carrying costs (property tax) in Madrid for 2026. We also used it to keep the monthly costs section anchored to official numbers. |
| Agencia Tributaria - Rental Income Rules | It's Spain's tax authority explaining the rules that actually apply when you file. | We used it to summarize how long-term residential rental income is taxed and what reductions may apply. We also used it to avoid outdated simplifications and reflect the post-2024 rule structure. |
| Agencia Tributaria - Rental Reduction Guide | It's the tax authority's step-by-step guidance page for the exact deduction landlords try to apply. | We used it to explain the conditions (housing use, contract type) in plain language. We also used it to frame a realistic net versus gross mindset for landlord cash flow in 2026. |
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