The Best Neighborhoods to Live in Madrid: Our 2025 Guide

When moving to Madrid, choosing the right neighborhood is crucial for feeling comfortable and integrating quickly. Each area of the city has its own character, atmosphere, and infrastructure, which can greatly influence your quality of life. Finding a neighborhood that matches your lifestyle, daily needs, and comfort expectations is essential for a smooth adaptation, especially when adjusting to a new cultural and social environment. After spending several years in Madrid, we’re sharing our list of the best places to live!

For Higher Budgets (€900+)

1. Chamberí: The Perfect Residential Neighborhood

Chamberí is one of Madrid’s top residential districts. It is highly sought after, especially by young professionals, and is ideally located between the bustling tourist areas (Sol, Chueca, etc.) and the more traditional residential neighborhoods (Salamanca). This area is generally quiet and offers plenty of amenities, including cinemas, restaurants, and bars, as well as easy access to Madrid’s major parks. Some of our favorite spots:

• Baeta Pasta: Gta. de Bilbao 4 (Italian, fresh pasta)
• The Little Big Café: C. de Fernández de los Ríos, 61 (cafés, breakfasts, salads)
• Oh! Mandril: C. General Alvarez de castro, 21 (Beer bar)

On weekends, the streets come alive, especially along Calle Ponzano, which is known for its lively nightlife. In Chamberí, rents are high, averaging around €1,100 per month for a one-bedroom apartment and €900 for a studio.

2. Salamanca: Luxury and Elegance

One of Madrid’s most prestigious neighborhoods, Salamanca is known for its high-end boutiques, gourmet restaurants, and stunning architecture. It is a calm and ideally located area, making it a top choice for families due to its proximity to shops, schools, and office areas. Our favorite spots:

• La Pescadería: C. de Hermosilla 46 (Spanish tapas bar)
• The Best: C. Jose Ortega y Gasset 64 (Spanish restaurant & bar)
• Monsieur Sushita: C. de Velázquez 68 (Asian restaurant)

In Salamanca, you'll need a generous budget for housing. You can expect to pay an average of €1,400 per month for a 50m² apartment. For more affordable options in this neighborhood, we recommend looking in the Guindalera area.

3. Retiro: a simple and affordable neighborhood

Named after Madrid’s famous Retiro Park, this district allows you to live in a peaceful environment while benefiting from moderate rent prices. It offers a great balance between urban life and green spaces, making it ideal for those who enjoy an active and outdoorsy lifestyle. Here you will be surrounded by Madrilenian families and you will find many nurseries and schools. In terms of amenities, there are also numerous supermarkets including the well-known Mercadona and Lidl. Our favorite spots:

• Cheesecake Avenue: C. de Antonio Acuña, 10 (Best cheesecakes in Madrid!)
• La Mordida: C. de Pío Baroja, 9 (Mexican restaurant)
• La Rollerie Retiro: C. Sanz de Baranda, 64 (Healthy & vegetarian dishes)

In this neighborhood, you can also find many cultural offerings including the Prado Museum and the CaixaForum exhibition center. Here, you should expect to pay an average of €1,000 for a one-bedroom apartment.

For Lower Budgets (€900 and below)

1. Carabanchel: The Up-and-Coming Neighborhood

One of the most promising districts in Madrid! Located southwest of the city, Carabanchel is well connected by bus and metro. It retains much of its traditional Spanish charm, including the Mercado de San Isidro, while also benefiting from urban renewal projects, such as the transformation of old factories into coworking spaces and art galleries. You will find much more affordable rents. Expect to pay between €500 and €700 for a studio, and between €600 and €800 for a one-bedroom apartment.

2. San Blas: A Residential and Family-Friendly Area

Located in northeast Madrid, San Blas offers a peaceful and authentic environment. It is a very residential district with plenty of green spaces, such as the Quinta de los Molinos Park. The metro and numerous bus lines provide an easy connection to Madrid’s city center. The cost of living is affordable, and the area features many sports facilities. You can find rents around €500 for a studio and starting from €800 for a one-bedroom apartment.

3. Alcobendas: A Modern City on Madrid’s Outskirts

The city of Alcobendas is very popular with families because there are many international schools, sports facilities and a safe environment. But it is also a dynamic business center, where many companies have established themselves. Located a few kilometers from Madrid, you can get there quickly via the metro and the bus network. You will need to count between €600 and €800 for a studio in Alcobendas, and from €800 for a one-bedroom apartment.

Conclusion: Find the Perfect Neighborhood for You!

Madrid offers a wide variety of neighborhoods suited to different lifestyles and budgets. Choosing the right one is a key step in making the most of your experience and feeling at home. For more information on the procedures, see our guide to moving to Spain. Our Hiliv experts can guide you through every step of this search, from defining your needs to handing over your keys. Going through an expert will allow you to save time, avoid scams and find the right neighborhood to enjoy fully!

Feel free to consult portals like Idealista or Fotocasa for your searches.