Where to Stay in Madrid (Best Areas & Places)

10 Best Neighborhoods & Areas to Stay in Madrid

Even though Madrid is the largest city in Spain, it’s surprisingly easy to get around without a vehicle. This is true whether you’re staying in Madrid’s city center or a neighborhood on the outskirts of the city. With the help of public transportation, Uber, and some comfortable walking shoes, it’s effortless to reach all of Madrid’s top districts.

Sol

👉 Best Area For First-Time Visitors | ✨ Best Sol Hotels: Madrid 1915 Private Suites • Hotel Moderno Puerta del Sol • Hostal Patria Madrid • Hotel Liabeny • B&B Hotel Madrid Centro Puerta del Sol

Sol is a favorite neighborhood among newbies to Madrid and it’s easy to understand why so many people love this area. Sol is considered downtown Madrid, which reaches from Puerta del Sol to the Royal Palace.

An excellent option in this area are the Madrid 1915 Private Suites, huge private apartments in quiet alley just a few steps from Plaza Mayor, the city’s main square. Of all the places our writers have stayed in Madrid, these apartments definitely have the most central location.

If you prefer a hotel experience, Francisco I Boutique is a highly rated boutique with a similarly solid location.

Sol is one of the more centrally located neighborhoods in Madrid, with Centro on one side and Malasana on the other. El Retiro Park is also well within walking distance. 

You’ll find tons of different top tourist attractions such as Plaza Santa Ana, Puerta del Sol, and the Royal Palace. Most of the city’s tourist attractions that aren’t located in this neighborhood are still very close by. 

Sol is famous for its array of simultaneously affordable and mouth-wateringly delicious restaurants. Some of my top recommendations for low-cost eateries in Sol include Restaurante D’Corazon and Restaurante Rosi La Loca.  

Pros of Staying in Sol Neighborhood:

• Lots of major attractions nearby like Puerta del Sol and the Royal Palace
• Centrally located 
• It’s possible to find a cute boutique hotel, hostel, or more modern hotel 
• Walking distance to other neighborhoods
• Lots of affordable, delicious restaurants nearby

Cons of Staying in Sol Neighborhood:

• Popular area with lots of tourists
• Accommodations sell out fast in the high season

Centro

👉 Best Area For History, Culture, & Central Location | ✨ Best Centro Hotels: Hostal Aresol • Ok Hostel Madrid • Plaza Mayor Suites & Apartments

Located in Central Madrid is the obviously named Centro neighborhood, which is a broader area that also encompasses the Sol and Las Letras areas. This district is in one of the most favorable locations in the city because it is surrounded on all sides by Madrid’s other best neighborhoods.

Sol, Lavapiés, and Salamanca are all conveniently right next door. If you’re trying to figure out where to stay for easy access to the rest of the city, Centro is a great option.

Centro is also home to a lot of budget accommodation, like Hostal Aresol and Ok Hostel Madrid, as well as apartment-style accommodation like Plaza Mayor Suites & Apartments.

Pros of Staying in Centro Neighborhood:

• Within walking distance of other neighborhoods
• Many excellent tapas bars 
• Great for first-time visitors 
• Lots of affordable hostels are available
• Several historical attractions nearby

Cons of Staying in Centro Neighborhood:

• Fewer options for hotels or Airbnbs 

Retiro

👉 Best Area For Chill Ambiance & Inviting Green Spaces | ✨ Best Retiro Hotels: Petit Palace Lealtad Plaza • voco Madrid Retiro, an IHG Hotel • Claridge Madrid

Most people think that a capital city like Madrid would be all hustle and bustle without any relief. However, many of the city’s neighborhoods are actually relatively calm, such as Retiro.

Located next to Madrid’s largest greenspace, the Retiro district is a popular place to stay in Madrid for families. The park alone is an endless source of fun and cheap outdoor activities. 

There are lots of different accommodation options in Retiro that can house solo couples or families of 5+. The main drawback of staying in Retiro is that it’s a little bit of a hike from the central neighborhoods of Madrid and all of the attractions there.

Additionally, hotels tend to be a little more luxurious and pricey in this neighborhood. 

Pros of Staying in Retiro Neighborhood:

• Very family friendly neighborhood
• Calmer atmosphere than the busier areas of Madrid
• Lots of green spaces
• Many hotels

Cons of Staying in Retiro Neighborhood:

• Hotels can be expensive
• Few attractions besides the park

Chamberí

👉 Best Area For a Local Vibe in Madrid’s Center | ✨ Best Chamberí Hotels: NH Collection Madrid Abascal • Hotel Sardinero • Leonardo Boutique Hotel Madrid

Madrid’s tourist crowds can be intense. Consider staying in Chamberí if you really want to see the city’s famous attractions! This barrio in the city’s north is a respite from the throngs that descend on Madrid’s center. You’ll be mixing with the locals here, and it’s a short walk or metro ride from the big sights. 

Chamberí is a gorgeous barrio full of grand “glorietas” (roundabouts), lively plazas, and lesser-known but important sights. It’s home to three of the best small museums in Madrid: Museo Sorolla, Sala Canal de Isabel II, and the Museo Estación de Chamberí. Shopping is great along Calle Fuencarral. It’s got all the stores without the Gran Via mayhem. 

This is also one of the best neighborhoods in the city for eating and drinking. Plaza de Olavide is the top spot. This round plaza is lined with many restaurants. Enjoy its delightful fountain and savor the local scene. 

Calle Ponzano is also a popular gastronomic area in Chamberí. This street is full of tapas and cocktail joints and is a perfect nighttime option. 

Chamberí has many places to stay, and it’s safe and quiet at night. I’ve always loved the Hotel Sardinero. It’s on a beautiful corner of the city, across from the charming Plaza De Santa Bárbara.  

Pros of Staying in the Chamberí Neighborhood:

• A beautiful, high-end neighborhood in Madrid’s central core
• Lots of amazing cafés, restaurants, and bars
• Home to several metro stations 
• An easy walk to Madrid’s main tourist hub
• Great shopping on Calle Fuencarral 
• Quiet and safe at night 

Cons of Staying in the Chamberí Neighborhood:

• Not many nightclubs (but Malasaña and Chueca are very close)
• Hotels can be more expensive 

Barrio de las Letras

👉 Best Area For Museums & Bars | ✨ Best Las Letras Hotels: Soho Boutique Congreso • One Shot Prado 23 • Catalonia Plaza Mayor

One of the best things to do when visiting a new city is to take a gander at all of its museums. It’s the ideal way to take in a city’s story. Luckily, Madrid has a lot to offer in this department. Especially in the neighborhood of Barrio de las Letras. 

This Madrid neighborhood is located in a very optimal location of the city center. Right between Centro and Sol, you’ll find some of Spain’s most famous museums like the Prado Museum, the Museum of Illusions, and Lope de Vega’s House Museum.  

Once you’re done getting to know Madrid’s history and cultural influences at the museums, Las Letras has plenty of places to eat and recharge. Some of my favorites are Casa Alberto and El Barril de las Letras. 

Then, the party can continue after the sun goes down. There are tons of local bars to choose from. Salmon Guru and Lovo are to send your night in the right direction. Barrio de las Letras’ combo of activities, restaurants, and nightlife makes it a great place to stay in Madrid.

Pros of Staying in Las Letras Neighborhood:

• A variety of places to eat
• Lots of different bars and clubs
• Cool museums and historic sites
• Easy to find a cute boutique hotel 

Cons of Staying in Las Letras Neighborhood:

• Crowded, especially from June to August

Malasaña

👉 Best Area For Incredible Restaurants & Lively Nightlife | ✨ Best Malasaña Hotels: Vincci Via • Dear Hotel Madrid • Riu Plaza Espana

Malasaña is the best place to stay for having easy access to restaurants and lively nightlife.

The neighborhood has some of the city’s best restaurants, with a variety of cuisine like sushi at Okashi Sanda and Ethiopian food at Etíope Nuria. If you’re a digital nomad, there are a bunch of adorable cafes and little bakeries to work the day away in. Malasaña also has one of the most high-spirited nightlife scenes in the entire city. 

While places like Plaza de España Square are located right near Malasaña, most of the city’s big tourist attractions aren’t in this neighborhood. Additionally, accommodations tend to be a little more pricey. 

Pros of Staying in Malasaña Neighborhood:

• Plenty of hotels to choose from
• Lots of great restaurants with a variety of different cuisine
• Lots of cute cafes and sweets shops around
• A vibrant nightlife scene

Cons of Staying in Malasaña Neighborhood:

• Few attractions nearby
• Accommodations can be expensive

Salamanca

👉 Best Area For Luxury, Fashion, & Shopping | ✨ Best Salamanca Hotels: ICON Embassy • TÓTEM Madrid, a Small Luxury Hotel of the World • The Pavilions Madrid Hotel  

That old saying “you get what you pay for” definitely rings true in the Salamanca neighborhood of Madrid. Even though it’s one of the pricier places to stay in Madrid, it’s also one of the best. If you want to stay in the lap of luxury on a trip to Madrid, you’ll probably want to book a hotel in the Salamanca district. 

There are practically endless high-end hotels to choose from such as TÓTEM Madrid and ICON Embassy. The opulence doesn’t stop there, though.

There are 5-star restaurants, a range of nightlife options, and tons of upscale shopping around Salamanca. There are also top tourist attractions including the National Archaeological Museum and Las Ventas, Madrid’s iconic bull ring. 

Visitors who want to stay in Salamanca should keep in mind that it is one of the most expensive neighborhoods in Madrid. Set a budget and stick to it when you’re staying in this district or you could end up with an empty wallet. 

Pros of Staying in Salamanca Neighborhood:

• Lots of nice, luxury hotels
• 5-star dining establishments
• A range of different nightlife options from pubs to cocktail bars

Cons of Staying in Salamanca Neighborhood:

• Pricey

Atocha

👉 Best Area For Families & Artsy Vibes | ✨ Best Atocha Hotels: Only YOU Hotel Atocha • Rafaelhoteles Atocha • AC Hotel Atocha by Marriott 

If you’re looking for a neighborhood in Madrid that will offer a chill atmosphere, you’ll find it in Atocha. It’s one of the more laidback, residential areas of the city. That’s why it’s one of the best places to stay if you’re visiting with young children or just prefer a less crowded atmosphere.

This neighborhood has a cute vibe and is the type of place where you’ll want to spend all day aimlessly wandering. There aren’t that many sites to see in Atocha, yet it still feels like there are enough idle activities around to fill your day. 

One of the coolest things I saw in Madrid happened to be located in this neighborhood – the Madrid Atocha Train Station. I know what you’re thinking; why would you ever want to visit a train station? Well, this one happens to have a thriving, lush greenhouse inside that looks almost otherworldly.

Even if you’re not staying in this neighborhood, you should make a trip out to catch a glimpse of this one-of-a-kind attraction.

Pros of Staying in Atocha Neighborhood:

• A quieter, residential option
• Great for families
• A cute, trendy overall vibe 
• Lots of inexpensive, yet top-quality, restaurants

Cons of Staying in Atocha Neighborhood:

• Fewer hotels to choose from 
• Not that much of a nightlife scene

Lavapiés

👉 Best Area For Budget Travelers | ✨ Best Lavapiés Hotels: Artrip Hotel • Ibis Budget Madrid Centro Lavapies • Reina Sofia Acogedor 

Lavapiés might be a terrific option if you’re traveling to Europe on a budget. While most of Madrid’s neighborhood will cost you a pretty penny, the accommodations and restaurants in Lavapiés are surprisingly affordable. This makes it a popular neighborhood with younger travelers especially. 

Many solo travelers flock to this Madrid neighborhood for its premium nightlife scene. There is a long list of different bars to try around this area. Including unique lounges like the La Noche Boca Arriba piano bar and laidback watering holes like La Huelga de Lavapiés pub. 

The other convenient thing about Lavapiés is that it’s sandwiched right between Centro and El Retiro. Making it simple to get basically anywhere else in the city on foot or with a trip to the metro station. 

The only borderline annoying part about staying in this neighborhood is that it gets very busy. It might not be the best choice for people who are seeking peace and quiet in Madrid. 

Pros of Staying in Lavapiés Neighborhood:

• Lots of low-cost budget hotels 
• Many delicious, affordable places to eat
• An endless list of excellent bars
• A great option for solo travelers 
• Centrally located between other cool neighborhoods

Cons of Staying in Lavapiés Neighborhood:

• Few attractions
• Busy

Ibiza

👉 Best Area For High-End Food Scene | ✨ Best Ibiza Hotels: Novotel Madrid Center • RETIRO-IBIZA ALQUILER TEMPORAL-Hospitales • ICON Wipton 

That’s right, Ibiza isn’t just a Spanish party island in the Mediterranean sea, it’s also one of Madrid’s major neighborhoods. Located just north of the Retiro district and right next to the city’s giant El Retiro Park, you’ll find Ibiza. 

Ibiza is the place to stay if you want to get acquainted with Madrid’s best culinary offerings. The neighborhood is known for all things high-end food and drink.

Restaurants like KultO, Sazón-arte, or Castelados will dazzle you with their creative food and variety of wines.  Just keep in mind that these places tend to be on the more expensive side. 

The other thing to consider is that Ibiza is located pretty far from the city center on the opposite side of Retiro Park. You’ll either need to take a 45-minute long walk to get to central Madrid and its attractions or hop on public transportation. 

Pros of Staying in Ibiza Neighborhood:

• Lots of interesting restaurants to choose from
• A variety of bars around
• Removed from the touristy areas of the city

Cons of Staying in Ibiza Neighborhood:

• Few hotel options
• Must take public transportation to attractions and other neighborhoods

Tips for Staying in Madrid

Check The Weather

Weather in Madrid can range from scolding heat to pouring rain. You’ll want to know what you’re getting yourself into beforehand, so make sure you look into the best season to visit Spain for your preferences. 

Avoid Eating In Plaza Mayor

Everyone who spends time in Madrid has to spend a little time in Plaza Mayor, however, you should avoid eating around here. Since it’s a major tourist attraction, the restaurants around Plaza Mayor are more expensive. Plus, the food isn’t as good as most of the other spots in Madrid. 

You can find way better Madrid restaurants right outside of Plaza Mayor, like Restaurante Rosi La Loca and Alhambra.

Walk Everywhere Or Take Public Transportation

Driving in Madrid can be a nightmare, especially if you’re not experienced with the skinny Spanish streets. 

You should stick with walking whenever you can or take the local public transportation. It runs to almost all areas of the city. When all else fails, rideshare apps like Cabify, Lyft, and Uber are readily available. 

👉 Read Next: 17 Best Day Trips from Madrid

Research Travel Insurance for Spain

Madrid has a low crime rate, but bad things can happen no matter where you’re going. Imagine how stressful it would be to miss your flight, get injured abroad, or even get stuck in a natural disaster. 

Since the world is unpredictable, consider whether you need good travel insurance for Spain before you stay in Madrid.  

Dress To Impress When Going Out For The Night

The locals and visitors alike in Madrid share this general consensus of dressing to the nines on a night out. Even if it’s just going to grab dinner! This isn’t the destination to go casually. Even in a dressier outfit, you’ll fit in at most restaurants in Madrid. 

👉 Read Next: Spain Packing List

Try The Local Specialty Of Tinto de Verano 

When most people think about what cocktail they want to sip on with their meal in Spain, their mind immediately jumps to sangria. However, if you’re in Madrid, its distant relative called ‘Tinto de Verano’ is far more common. It’s kind of like an alcoholic Arnold Palmer made with 50% lemonade and 50% wine. 

FAQs

What is the coolest neighborhood in Madrid?

Malasaña is the coolest neighborhood in Madrid. The nightlife is top-notch and the restaurants follow suit. This neighborhood gives visitors that flare of fun and Spanish culture that they’re looking for when deciding where to stay in Madrid. 

What is the main part of Madrid?

Centro is the main neighborhood in Madrid. It covers most of the central area of the city from the Royal Palace of Madrid to the edge of El Retiro Park. 

How many days do I need in Madrid?

Visitors should plan to spend at least three days in Madrid. With three days to stay in Madrid, you’ll have enough time to visit a few of the city’s different neighborhoods, attractions, and restaurants. Three days is enough time to get a general feel for the Spanish capital.

👉 Read Next: Best Places to Stay in Barcelona

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What Madrid neighborhood are you leaning towards? Let us know in the comments below. Next up, read our perfectly planned, 10-day itinerary of Spain!

🖨️ Get a free, printable version of our 10-day Spain itinerary here!

–Catherine Driver contributed to this post