written by
Dre Roelandt
updated 22.07.2024
The Spanish capital, with its many districts, truly offers something for every taste and lifestyle. But what is the best area to stay in Madrid? Whether you're a first-time visitor, a student, or considering a move to this bustling metropolis, finding your ideal area is crucial to fully experiencing Madrid's magic. This guide will walk you through the key factors to consider when choosing your Madrid home base, from vibrant nightlife and cultural hubs to tranquil residential zones and everything in between.
Sol is quite literally the center of it all, and therefore a great area to stay in Madrid. The famous Puerta del Sol square is actually considered Kilometer Zero, the point from which all road distances in Spain are measured.
The square is home to several iconic landmarks, including the famous clock whose bells mark the traditional eating of the Twelve Grapes and the beginning of the New Year. Just steps away and you’ll find Plaza Mayor — a historical plaza with arcaded walkways that is a popular spot for both locals and tourists
Numerous shops and department stores line the surrounding streets of Sol. On Gran Vía, often referred to as the "Spanish Broadway," you’ll find theaters, cinemas, and trendy spots.
Mercado de San Miguel on the edge of Sol is a gourmet food market that shouldn’t be missed. Foodies will also want to try La Mallorquina for their napolitanas, and El Madroño for their homemade madroño liqueur.
Sol metro station connects three metro lines, making it super easy to explore other parts of the city. The area is lively well into the night, with bars and clubs nearby — including Joy Eslava, one of the most popular clubs in the city.
However, the busy nature of Sol means it can be noisy, especially at night. It might not be ideal for those seeking a quiet, relaxed stay. Lost? Just look for the iconic Bear and Strawberry Tree statue in Puerta del Sol. It's not just a great meeting point, but also the symbol of Madrid. You can't miss it!
Why I love it: "Staying in Sol means you’re in the heart of the action."
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The best area to stay in Madrid may be Puerta del Sol Square © Shutterstock
Retiro is the best area to stay in Madrid for families. You'll find here a great balance of tranquility, safety, and accessibility to the rest of town. This neighborhood is known for its family-friendly environment that caters to visitors of all ages.
The area surrounding Retiro is predominantly residential, and is quieter and more relaxed atmosphere compared to the bustling city center. This makes it easier for families to unwind after a day of sightseeing.
Retiro Park itself is a major draw for families. This massive green space, often called Madrid's "green lung," is worth a visit. Families can enjoy boat rides on the park's lake, visits to the Crystal Palace, explore various playgrounds, or simply have a picnic on the lush lawns. The park's paths are ideal for leisurely walks or bike rides.
For family-friendly dining, Retiro will also have you overed. Cafetería Embarcadero, located within Retiro Park, is great place to have a casual meal with lakeside views. Harina, a cozy bakery and café, is perfect for breakfast or afternoon snacks with its selection of pastries and sandwiches.
Nearby is the The Prado Museum, one of the world's most renowned art museums and a crown jewel of Madrid's cultural scene. Here you and the family can take advantage of guided tours, audio guides, and special exhibitions. The museum is open daily.
Why I love it: "Retiro is ideal for families, it's far enough from the city center and has a lot great places to visit."
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Retiro is the best area to stay in Madrid for families © Shutterstock
The exclusive area of Barrio de Salamanca in Madrid is renowned for its intelligent apartment blocks, designer emporiums, and wealthy residents. Here, wealth makes no bones about itself. The surroundings are proper for those who enjoy the sweets of life. Walk along Calle Serrano, and you can find up-market boutiques, as well as some gastronomic restaurants.
There are all sorts of other things to see and do; for example, cultural attractions include the Museo Arqueológico and the collections of Sorolla and Lázaro Galdiano. For sports fans, a trip to the nearby Santiago Bernabéu stadium.
Salamanca combines luxury, safety, and cleanliness to offer a comfortable stay. Excellent public transport links are at one's disposal to explore Madrid.
Why I love it: Salamanca is perfect for those looking for a luxurious stay with easy access to the best shopping.
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Museo Arqueológico facade © Adwo/Shutterstock
There's a laid-back pace here that contrasts with the busier tourist areas of Madrid. Barrio de Las Letras almost feels like a village within the city, with its own distinct character and community feel. This is a great place to wander without feeling rushed. The neighborhood is a hub for creatives, with numerous art galleries, studios, and street art.
This historic district, once home to literary giants like Cervantes and Lope de Vega, invites leisurely strolls and café-hopping. Don't miss the chance to sip coffee at historic establishments like Café del Príncipe or browse the shelves at century-old bookshops. You can even visit Casa Museo Lope de Vega, the restored home of the famous playwright.
Calle de las Huertas is the main thoroughfare lined with trendy shops and eateries.
While relaxed during the day, Barrio de Las Letras comes alive at night with buzzing tapas bars and lively street scenes. Instead of mainstream clubs, you'll find quirky bars with live jazz, flamenco peñas (clubs), and intimate theater performances.
One standout is La Chapelle, a trendy cocktail bar with a vintage vibe, celebrated for its creative drinks. Another hidden gem is Matute13, a stylish cocktail bar with a speakeasy feel, concealed behind a charming flower shop façade.
There's often something unexpected happening here — a pop-up art show, an impromptu music performance, or a local festival. Head to Plaza de Santa Ana, a lively square, for great people-watching.
Why I love it: "Huertas is a haven for literature lovers and those seeking a bohemian atmosphere."
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Handsome buildings on Plaza Mayor © Shutterstock
Malasaña's nightlife appeals to both locals and tourists, and staying in this area can really feel like an authentic Madrid experience. The area retains much of its counterculture charm from the 1980s "Movida Madrileña" era, blended with modern urban style.
Plaza del Dos de Mayo is a significant square in the heart of Malasaña, which serves as a kind of focal point for the area's social and cultural life. The square is ringed by various bars, cafes, and restaurants, and it's an excellent spot for people-watching, or enjoying a drink.
Malasaña is widely considered the city's epicenter of its vibrant nightlife scene. Here you'll find clubs like Tupperware, a popular club known for its indie and electronic music, and Ocho y Medio, a club dedicated to indie and pop music. Most nightlife spots are within walking distance of each other, making bar-hopping easy and fun.
Beyond the nightlife, Malasaña is the best area to stay in Madrid for excellent dining options, quirky shops, and a generally creative vibe. While here be sure to hit Tableaux Vivants, a curiosity shop filled with oddities, taxidermy, and unusual antiques. Or shop for vintage finds at Pum Pum Cafe.
Why I love it: "Malasaña’s bohemian atmosphere is perfect for those seeking a more alternative Madrid experience."
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Not sure about Madrid or Barcelona? Read our article about Madrid vs. Barcelona and make the best choice!
Malasana quarter in Madrid © Shutterstock
Chueca, located just east of Malasaña, stands out as the lively hub of Madrid's LGBTQ+ community. This welcoming neighborhood has transformed over the years from a once-neglected area to one of the city's most dynamic and inclusive districts.
Chueca is packed with an array of gay bars, clubs, and cafes. Start your night by catching a show at Woody’s — the bar is practically famous for its drag performances. The shows take place several nights a week.
During the day, La Kama serves as a cozy café, but when the sun sets, it transforms into a bustling bar beloved by the lesbian community. LL Bar is another trendy lesbian bar with a diverse crowd.
For those in the mood for dancing, Boite is a legendary nightclub popular among gay men. And if you prefer a more laid-back vibe, Black & White is a welcoming pub that attracts a mixed crowd looking to unwind and mingle.
In the day time, be sure to visit Mercado de San Antón. Spanning three floors, it offers everything from fresh produce to gourmet tapas and international cuisine. Don’t miss the popular rooftop bar, where you can enjoy a drink with a view.
Why I love it: "Chueca’s lively atmosphere is really fun, it’s a great way experience Madrid’s nightlife."
Or browse hundreds of accommodations in Chueca at any budget.
Chueca is the best area to stay in Madrid for the LGBTQ+ community © dmitro2009/Shutterstock
The Paseo del Arte, or "Art Walk," is the best area to stay in Madrid for art lovers. This roughly two-mile (one-kilometer) stretch along the Paseo del Prado is home to three of Spain's most renowned museums, collectively known as the "Golden Triangle of Art."
Start at Museo del Prado, a treasure trove housing masterpieces by Velázquez, Goya, El Greco, and other European masters. Then, explore Museo Reina Sofía, Spain's premier museum of 20th-century art, showcasing Picasso's powerful "Guernica," alongside works by Dalí and Miró. Complete your journey at Museo Thyssen-Bornemisza, a comprehensive collection spanning eight centuries of European painting.
For convenience, consider the Paseo del Arte pass, which will get you discounted entry to all three museums. Be sure to check the calendar for extended hours and special night visits on select days each month. Nearby, CaixaForum Madrid is also worth visiting.
Paseo del Arte attracts a mix of locals and international visitors, creating a cosmopolitan feel. While the area can be busy, especially during peak tourist seasons, there's an underlying calmness. The wide, tree-lined boulevard provides a sense of spaciousness.
Another plus is that you'll be in proximity to Retiro Park. Spanning 350 acres (125 hectares), it's one of Madrid's largest parks, situated in the heart of the city. You may even get the chance to catch another exhibition at the Crystal Palace (Palacio de Cristal) — a stunning glass pavilion inside the park.
Why I love it: "Paseo del Arte is ideal for art lovers and those who appreciate green spaces."
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Best area to stay in Madrid for art enthusiatst is nearby Reina Sofia © Jose Redondo Villalon/Shutterstock
Madrid de los Austrias and the adjacent Ópera area was the heart of the city during the Habsburg dynasty era (16th-17th centuries) when Madrid became the capital of Spain. The narrow, winding streets preserve the medieval layout of the old city.
The atmosphere is a blend of tourist activity and local life, with the constant backdrop of centuries-old architecture. Staying here means many key sights are within walking distance.
Built in the 18th century on the site of a 9th-century Moorish fortress, the Royal Palace or Palacio Real was the official residence of the Spanish monarchs from Charles III to Alfonso XIII. With 3,418 rooms, it's one of the largest palaces in Europe. The Royal Armory here houses one of the world's finest collections of armor and weapons.
Another draw is the Almudena Cathedral, which houses a 16th-century image of the Virgen de la Almudena, Madrid's patron saint.
Be sure to also visit Plaza Mayor — a 17th-century rectangular square surrounded by three-story residential buildings with balconies. The square's most emblematic building, Casa de la Panadería, features a frescoed façade.
Why I love it: "This area offers a deep dive into Madrid’s royal and historic past."
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Traveling further in Spain? Check out our guides to the best places to stay in Barcelona, or the best places to stay in Andalucía.
The imposing Palacio Real © Shutterstock
Gran Vía is Madrid's most famous and bustling thoroughfare. If you want to be in the midst of Madrid's energy and don't mind the hustle and bustle, this street is an exciting and convenient base for exploring the city. Staying in this area puts you at the heart of the city's action and ideally situated for exploring Madrid's main sights.
The Gran Vía area is often referred to as Madrid's "Broadway" due to its concentration of theaters. Highlights include Teatro Lope de Vega, renowned for its large-scale musicals like "The Lion King"; Teatro EDP Gran Vía, a modern venue featuring popular Spanish productions; and Teatro Rialto, an Art Deco gem known for its diverse theatrical offering that dates back to 1930.
If you’ve come to Madrid to shop, this is definitely the place to be — fom high-end fashion, international brands, local designers, and vintage and second hand. Many shops on Gran Vía open late (until 10 PM or later), and are even open on Sunday (unlike other parts of Madrid).
Top recommended is El Corte Inglés: Spain's largest department store chain that offers everything from fashion to electronics, books, and gourmet food. The Callao location has a rooftop terrace with great views.
The area is almost always busy with tourists and locals, and as a major thoroughfare, Gran Vía can be noisy, especially at night. You’ll want to explore side streets for more authentic and less touristy dining options — or lean into it and try the rooftop restaurants in some of the hotels for great views of the city.
Why I love it: "Gran Vía is the beating heart of Madrid’s entertainment scene."
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Gran Vía area is where to stay in Madrid for busy city vibes © Studioimagen73/Shutterstock
La Latina is the best area to stay in Madrid for those who travel to eat. This area is home to some of Madrid's best and most traditional tapas bars. The area comes alive in the evenings, especially on weekends, when locals practice the art of "ir de tapas" — going from bar to bar, enjoying small plates and drinks.
Cava Baja, often called “Tapas Street” is where you’ll find the highest concentration of tapas bars and restaurants. This street is bustling and lively, with tourists and locals, especially in the evenings and on weekends.
Start your evening at Taberna El Tempranillo, known for its wine extensive wine list, and then venture to La Perejila for the popular croquetas.
Known for its rooftop terrace, El Viajero provides stunning views of La Latina along with a varied tapas menu. Be sure to try their tostas, topped with ingredients like jamón ibérico and creamy goat cheese. Finally, famous for its huevos rotos (broken eggs), Casa Lucio is a Madrid institution. And this is just a very small portion of the fantastic tapas bars in this area.
That said, be prepared for later dining times — many locals don't start their tapas crawl until 9 PM or later.
In the daytime be sure to visit El Rasto. Madrid's largest open-air flea market takes place here on Sundays and dates back to the medieval period. You can find antiques, handmade crafts, and plenty of odd second hand items.
Why I love it: "La Latina offers a traditional Madrid experience with its historic streets and bustling markets."
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Madrid La Latina district © Shutterstock
Lavapiés, located in central Madrid, is widely regarded as one of the city's most diverse and affordable neighborhoods. This vibrant, multicultural district offers a blend of traditional Spanish charm and international influence, all while being easy on the wallet.
Here you'll find a range of budget hotels, hostels, and vacation rentals at lower prices than more touristy areas. Wander through its narrow streets and you'll encounter striking murals, and street art.
At the same time, Lavapiés is well-connected to the rest of Madrid. Embajadores station will connect you to major transport hubs, and Puerto del Sol is just a 15 minute walk away.
That said, Lavapiés is worth spending time in. While here, grab a bite to eat at El Buo — asmall, no-frills bar known for its generous and inexpensive tapas. Or Paladar de Lavapiés which is known for its Cuban-inspired menu and budget-friendly prices.
Also, keep in mind that in many traditional Spanish bars, ordering a drink often comes with a free tapa, which can be a great way to sample local cuisine on a budget.
Unlike some more touristy areas of Madrid, Lavapiés feels genuinely lived-in and down-to-earth. There's a strong sense of community, with numerous local initiatives, community centers, and cultural events. While generally safe, some areas can feel a bit rough around the edges, especially at night. This adds to its character but also means visitors should stay aware of their surroundings.
Why I love it: "Lavapiés is a melting pot of cultures and a great place to experience Madrid’s diversity on a budget."
Or browse hundreds of accommodations in Lavapiés at any budget.
Scenic view of Lavapies neighborhood in Madrid © Shutterstock
Chamberí, located in the north-central part of Madrid, is widely regarded as one of the safest and most tranquil neighborhoods in the Spanish capital. This quiet residential district has a serene local charm that feels different from the rest of the bustling city. The area is also quite a bit less touristy than central areas, and offers a glimpse into everyday Madrid life.
The area itself is beautiful. You'll find a mix of Neoclassical, Art Nouveau, and early Modernist buildings from the 19th and early 20th centuries. Many buildings feature ornate facades, wrought-iron balconies, and interior courtyards typical of Madrid's traditional architecture.
This area is especially great for families looking for a safe and quiet place to stay.
One of the best perks of the area is Canal de Isabel II Park. This 42 acre (17 hectare) park is massive and is a great place to have a picnic or rent a rowboat to paddle across its lovely lake. There are also playgrounds for children, sports facilities, and shaded areas ideal for hot summer days.
Though certainly far away from the city center, the neighborhood is well-connected to the rest of the city via metro and bus lines.
Why I love it: "Chamberí provides a more authentic, local experience of Madrid away from the tourist crowds."
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Plaza Mayor, Madrid © Shutterstock
Different areas of the city cater to various interests and needs, so understanding what matters most to you will help ensure a more enjoyable stay.
Remember that Madrid has an excellent public transportation system, so even if you're not staying in the heart of the action, you can easily reach other parts of the city. Consider your priorities, but also factor in the overall convenience and atmosphere of the neighborhood to find the best fit for your Madrid experience.
And of course, be sure to factor in noise level — nothing is worse than a trip ruined by sleep deprivation.
While Madrid is generally a safe city, it's important to take normal precautions, especially in crowded tourist areas. Be aware of pickpockets in busy metro stations and popular squares, stick to well-lit streets at night, and avoid walking alone in unfamiliar areas. You'll want to keep your valuables secure and be cautious when using ATMs.
When travelling with young children, it’s often easier to stay in more residential areas, both for security and for a break from the bustling atmosphere.
The best area to stay in Madrid depends on what you want to get out of the trip © Shutterstock
Madrid has an excellent public transportation system, and it is pretty easy to explore the city from just about any neighborhood:
Madrid also offers a tourist travel pass called the "Abono Turístico," which allows unlimited use of public transportation for 1-7 days. This can save you money if you plan to use public transport frequently during your trip.
We may earn commission from some of the external websites linked in this article, but this does not influence our editorial standards - we only recommend services that we genuinely believe will enhance your travel experiences.
written by
Dre Roelandt
updated 22.07.2024
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