After living and working for 2 years in Madrid, I get frequently asked about the best places to stay in Madrid or where to stay near Madrid. I’d say that it largely depends on the type of traveler you are and the expectations on your visit to Madrid.

Even though Madrid hasn’t the beaches of Barcelona, it has tons of other attractions that make the Spanish capital the perfect getaway. Often at much more competitive rates than its Catalan competitor on the coast.

Madrid is not only to the perfect weekend city trip but also perfectly suited for extended stays which include day trips to the surrounding gems like Toledo, Avila or Segovia .

For too long, Madrid was overshadowed by its eternal competitor Barcelona. However, in the last years, Madrid has become increasingly popular among travelers for city breaks, shopping sprees, cultural visit or outdoor activities. Madrid is huge in size and it might be overwhelming when looking for the best neighborhoods to stay in Madrid.

After calling Madrid my home for almost 2 years, in several neighborhoods, I want to show you my favorite neighborhoods and places to stay in Madrid according to the expectations of your visit. You can also find here where to stay in Madrid with family.

Well, here it goes: The Ultimate Guide on The Best Neighborhoods to Stay in Madrid , one of the most vibrant European capitals out there.

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The opinions of this post are based upon my professional experience in the Spanish tourism sector and upon my stay in Madrid during which I visited numerous hotels. In total, I lived 2 years in a row in Madrid but visited several times before and after. Altogether I stayed in Madrid for a minimum of 3 years. Read here about Madrid’s less known highlights

So before you head to Madrid, first you need to decide if you want a cultural city trip, a quiet city break, luxury holidays or outdoor adventures. Because you can even go skiing in Madrid!

In order to give those queries a detailed answer, I decided to write this in-depth guide on where to stay in Madrid Spain. Accommodation places are categorized by location and budget.

When is the Best Time to Visit Madrid?

My favorite time to visit Madrid is in spring (early March – beginning of June). After a long and cold winter, the entire town starts to bloom and people invade the terraces on the quaint plazas. On top, these months are full of sunshine and relatively warm temperatures whereas Northern Europe is still freezing. Another option to visit Madrid is in autumn. Again, the town boasts long days filled with sunshine and warm climate whereas it’s getting cold again in Northern Europe. I wouldn’t recommend visiting Madrid in summer as temperatures can easily reach 40°C! On top, during the afternoon many shops will close and the streets are empty until 7 pm. Most madrileños travel to the coast in July/August in order to escape the heat. In spring and autumn, the temperatures are bearable. Even in winter, Madrid is a nice getaway. Even though it might get quite cold (Madrid has a continental climate) you have a broad cultural and leisure offer. You might even consider going skiing in the mountains surrounding Madrid (like in Puerto de Navacerrada). Other perfect occasions to visit Madrid are its traditional festivals like San Isidro (15th of May), La Paloma (12-15th of August) or San Lorenzo Verbena (9-11th of August).

What To Do in Madrid?

Best Neighborhoods in Madrid To Stay If You Are A Party Animal

1. Malasaña

Malasaña is the hipster neighborhood of Madrid, located just behind the most important avenue Gran Via. It boasts numerous trendy bars and its quaint cobbled streets invite for long walks in the afternoon. It’s one of the most prominent Madrid neighborhoods with a very specific athmosphere. For ages, Malasaña has been the creative and youngest neighborhood. By far, it’s my favorite neighborhood and a visit to Malasaña is a MUST when I visit Madrid. It just has such positive, creative energy! However, Malasaña is also a great location to party. There are countless bars and clubs which attract a wide range of music styles. And it’s mandatory to taste some of the new tapas creations in the bars of Malasaña before clubbing. Malasaña is definitely one of the coolest neighborhoods in Madrid and for party-lovers the best neighborhood to stay in Madrid. Some of the most popular clubs in Malasaña are: El Rey Lagarto: for metalheads

La Via Lactea: indie, rock, britpop, and electronica

El Penta: spanish music from the 60s -70s

Coconut Bar and EL FABULOSO: eccentric

Terraza Gymage: fabulous rooftop bar on top of the gym in the heart of Malasaña

2. La Latina

La Latina has a long tradition of nightlife. The barrio (neighborhood) is not only famous for its delicious and affordable tapas, but also for its vibrant clubs. For those who love to be out, La Latina is one of the best neighborhoods to stay in Madrid. The best way to discover the pleasures of La Latina is to change bar after each drink. Indeed every bar has a very different mood, different tapas and drink creations. It would be such a shame to stay only in one bar. (When I moved from Madrid, I took this impulsion with me: never more than 1 drink in the same bar!). The bests streets for tapas are Cava Baja and Cava Alta. You can’t skip La Latina while looking for the best area to stay in Madrid, Spain. Some of the most popular clubs in La Latina are: Contraclub: live music ranging from varied styles such as jazz, hip-hop and flamenco

Marula: international music

Corral de la Moreria: flamenco & dinner

Best Madrid Neighborhoods for Luxury Holidays

1. Barrio de Salamanca

Salamanca is Madrid’s “poshest”, more exclusive neighborhood. It was originally designed for Madrid’s aristocracy and bourgeoisie. You’ll see the most beautiful mansions sharing the quarter with international, luxury and designer brands. Some of Madrid’s finest restaurants are at home in Barrio de Salamanca which offers very chic dining options with the finest Iberian products. The most expensive and exclusive streets are Calle de Serrano, Calle de Goya, and Calle de Velásquez. You’ll easily find an upper-scale hotel for a perfect luxury stay in Madrid.



2. Paseo del Prado

Best Areas to Stay in Madrid Spain for a Quiet City Break

Even though Madrid is one of the liveliest and vibrant cities I visited in Europe, it also has more quiet areas which are perfect to unwind and relax.ago

1. Retiro Neighbourhood

2. Chamberí

Chamberí used to be the quarter for the older, more traditional Madrileños. Not many visitors included Chamberi into their Madrid 24h-itinerary. However in the last years, countless new eateries popped up and little designer shops are opening, making Chamberí the new place to be. Some of the places you can’t miss in Chamberí are: Perrachica: famous all over the town for its brunch

Cine Verdi: nostalgic, vintage cinema

La Maquina de Chamberi: amazing seafood and warm atmosphere

La Vaquería Montanesa: local, organic food, a local’s foodie hotspot However, the quarter still preserved some of its traditional, bourgeois atmospheres which makes Chamberi the perfect place to spend a relaxing city break. Definitely keep an eye on it when looking for the best neighborhoods to stay in Madrid.

Best Neighborhoods To Stay in Madrid for Shopping City Break

1. City Center Madrid

I love shopping in the city center of Madrid. Not only will you find here all the international brands (around Gran Via, Callao, Puerta del Sol, etc.) but you’ll also find some very old, historic shops which have a long tradition in Madrid. If you fancy a shopping trip, El Centro (city center) is one of the best neighborhoods to stay in Madrid. They mostly sell artisan, handmade products and are thus the perfect, valuable souvenir from your stay in Madrid. The city center is also the best place to stay in Madrid when you only have 1 day in Madrid. Some of these traditional shops that can’t be missed are the following: Casa de Diego: Puerta del Sol, selling and producing fans for over 150 years

Justo Algaba: Sastrería Torera, bullfight tailor

Sombrerería Medrano: oldest hatter in Spain, hats made in Spain since 1832

Juan Alvarez: luthier making Spanish guitars since 1945

Casa Hernanz Alpargateria: a must when I visit Madrid. Get canvas shoes at the legendary shop operating since 1840. Beware of the queue!

2. Salamanca & Malasaña

Malasaña is definitely my favorite place to shop! There are so many quirky, original and creative shops that it will be very hard to choose where to start. On top the area is changing a lot, thus you’ll find different stores than in your previous visit. The location, the narrow streets of Malasaña provide as well a great setting for shopping. Thus you should definitely consider Malasaña when looking for the best neighborhood in Madrid. Some of my favorite shops in Malasaña are: Vintage Shopping: Miss Vintage, Flamingos Vintage Kilo, El Templo de Susu, Magpie, La Mona Checa, Ekeko

Antigua Casa Crespo: traditional Spanish shoe shop since 1863 (made in Spain)

Williamsburg Vintage Clothes: vintage clothes

La Intrusa: original gift shop Malasaña might get a bit loud during the weekends, thus I recommend staying in Salamanca neighborhood. Shopping in the chic quarter of Salamanca is definitely an exclusive experience. It’s one of the most stylish districts, featuring many international designer brands. However, you’ll also find luxury Spanish brands. The best streets in Salamanca neighborhood for luxury/fashion shopping are: Calle Serrano (Tesla, Kenzo, ZARA, Prada, Loewe, Armani , Chopard , Yusty, etc.)

Calle Ortega y Gasset (Christian Dior, Tiffany & Co.,Hermès, Chanel, etc.)

Calle Jorge Juan

Calle Ayala

Where is the Best Place to Stay in Madrid For Hiking & Outdoor Holidays?

1. El Escorial

Only a few people that travel to Madrid include going hiking or doing outdoor activities as their first plan. Indeed most see Madrid as a huge city, being impossible to feature outdoor leisure activities. Well, you couldn’t be more wrong. If hiking is in your plans, this is the best place to stay. Madrid, El Escorial area is the departure point of many hiking routes. Not only is it a perfect day trip from Madrid due to its monumental monastery and delicious gastronomy, but due to its natural setting in the mountains, El Escorial is a coveted destination for hikers, trekkers, birders, and climbers. El Escorial is about 1h ride with the cercanías train departing from Madrid City Center. And the perfect reward for your physical efforts will be a delicious, traditionally Castilian meal and some of the best food in Madrid. Book Here Your Day Trip to El Escorial from Madrid

2. Guadalajara

Guadalajara is a town located east from Madrid which is easy to reach by cercanías railway from Madrid. Guadalajara is close to the mountains and surrounded by protected natural spaces. It’s thus the perfect departure point for excursions and treks. Guadalajara is perfectly connected with the city center of Madrid by the cercanías railway. If you stay in Guadalajara, you can’t miss visiting the famous “black Villages“. Those villages are the cutest and it looks like time stands still in them. Other places worth visiting are the villages of Brihuega, Atienza and Sigüenza. As usual, food in the rural places of Spain is delicious and the province of Guadalajara is particularly famous for its roast lamb or kid.

3. Manzanares El Real

Manzanares El Real was one of my favorite weekend excursions. The village itself is very cute (again, amazing food here!) and boasts a gorgeous castle which is considered the best-preserved one in the Community of Madrid. The surroundings of Manzanares El Real are a declared Biosphere Reserve by the UNESCO. The nearby La Pedriza area, dotted with unique granite peaks, is perfect for hiking and climbing activities. Another great hiking area is Cuenca Alta Manzanares Park. The lake next to the village, Santillana Reservoir is perfect for fishing and cycling. Book Here Your Hiking Day Trip from Madrid

Best Location to stay in Madrid as a Backpacker

1. La Latina

Even though Madrid is the capital of Spain, one of the most touristy countries in the world, the town remains a very affordable destination. As long as you pay attention to where you stay. Indeed the neighborhoods of Madrid and its prices vary a lot. If you are traveling on a budget, La Latina is one of the best neighborhoods to stay in Madrid. For many years La Latina neighborhood is known for the good price-quality relationship. It’s not only a very young neighborhood with many historic monuments, but it’s also close to the city center and has some of the best tapas restaurants in Madrid. The area hosts many hostels which make it the best place to stay in Madrid for backpackers who want to make the most of their trip and their money. Best Hostels To Stay in La Latina, Madrid Budget OK Hostel Madrid

Hostal Macarena **

The Citadel by Pillow *

Way Hostel Madrid

2. Lavapies

Lavapies neighborhood is located further south from La Latina, but still in what is considered the city center of Madrid. Historically Lavapies was inhabited by the lower nowadays Lavapies is probably the most multicultural neighborhood in Madrid and you can easily find shops selling typical products from very specific African countries. When looking for a quirky side of Madrid, Lavapies is one of the best neighborhoods to stay in Madrid. I particularly like Lavapies for its eclectic energy and having the best food (for cheap money) from all over the world. Due to its affordable prices, Lavapies is the perfect place to stay in Madrid for those traveling on a budget.

Best Madrid Hostals To Stay in Lavapies District Budget Cats Hostel Madrid Lavapies

ibis Budget Madrid Centro Lavapies *

Far Home Plaza Mayor * Best Neighborhoods in Madrid for AirBnB Stays Do you want to explore Madrid like a local? Then, there is no better way than by staying in an Airbnb. In the last years, plenty of cool AirBnBs are popping up in Madrid. There is an Airbnb in Madrid for any budget which makes it the best area to stay in Madrid for tourists. Whether you are a backpacker or a stylish interior design is important for you, there is an Airbnb in Madrid that will suit your needs. The best AirBnBs can be found in the neighborhoods of Malasaña, La Latina and in Centro. Check the best AirBnBs in Madrid here

Best AirBnBs in Madrid

Accommodation Map for the Best Areas to stay in Madrid