Average monthly rent in Madrid by neighborhood
Read this article to learn rental price trends in Madrid and to see the average monthly rent in Madrid, broken down by neighborhood.
Rents in Madrid versus other European capitals
In general, monthly rents in Madrid are relatively cheap when compared to other European cities. This is even after the strong price run-up seen in recent years. The average monthly rent in Madrid increased 31% between 4Q2015 and 4Q2018.
We want to point out that there is great variation in Madrid rents. First, compared to other cities, it is relatively expensive to rent a two bedroom apartment compared to a one or three bedroom.
Second, the premium neighborhoods in the Center (19.0€/m2), Salamanca (18.6€/m2) and Chamberí (18.4€/m2) are equal to or higher than those in Amsterdam (18.4€/m2), Outer London (18.1€/m2) or Ile de France (18.1€/m2)*.
Much of the above variation can be attributed to the Airbnb effect. Because the hotel stock in Madrid is not on par with that in cities like London, Paris or even Rome, Madrid has seen a great deal of Airbnb investment. The bulk of Airbnbs are two bedroom apartments located in the city Center. For this reason, we recommend looking for medium (one month or more) and long term apartment rentals (one year or more) in more residential neighborhoods.
Rents in Madrid by neighborhood
We group the neighborhoods into four different categories:
- Premium neighborhoods
- Centrally located residential neighborhoods
- Up and coming neighborhoods
- Not quite the suburbs
1– Premium neighborhoods
This neighborhood category includes the Center, Salamanca and Chamberí. Rents in the Center averaged 19.0€/m2 in 4Q2018. The Center includes the main tourist sites such as Puerta del Sol, the Big Three Museums (the Prado, Reina Sofia and Thyssens) and Plaza Mayor, and old neighborhoods such as Malasaña and La Latina. As mentioned above, because these neighborhoods are favored by tourists, we don’t recommend paying the high rents unless you have your heart set on living in a party atmosphere like Malasaña.
Rents in Salamanca averaged 18.6€/m2 in 4Q2018. Although expensive, it is a high-end, residential neighborhood with excellent shopping, diverse restaurants and close proximity to Madrid’s lovely main park, the Retiro. It is also very international, compared with most other neighborhoods. If you like living in a glamorous neighborhood, like NYC’s Upper East Side, London’s Knightsbridge or Paris’s Trocadero, you won’t mind paying the additional expense.
Rents in Chamberí averaged 18.4€/m2 in 4Q2018. Chamberí is extremely convenient and has a more traditional feel than Salamanca. Many families live here and it has a number of parks and activities for kids. It is a great choice for people that want a relatively unpretentious, high-end neighborhood.
2–Centrally located residential neighborhoods
This neighborhood category includes Chamartín and Retiro. Although we put them in the same price category, they couldn’t be more different. Rents in both neighborhoods averaged 16.2€/m2 in 4Q2018
Chamartín is located to the north of the Center. It is where the Central Business District (CBD) of Madrid is located. Surrounding the tall buildings are many residential streets. Because it is home to so many businesses, there are a lot of high-end restaurants in the neighborhood. There is excellent shopping around the Nuevos Ministerios Metro stop, but it is mostly large, international brands. The neighborhood lacks the small boutiques seen in Salamanca and Chamberí. It is also very easily reached via Metro. It is an ideal neighborhood if you have a family and/or you work in the CBD of Madrid.
Retiro is a very residential neighborhood. As its name indicates, it borders the Retiro. It is a very green neighborhood (ie: lots of trees, not because its residents are particularly environmentally friednly) and many families live here. However, it is not well serviced by the Metro and can feel a bit remote. That said, if you like the atmosphere of Salamanca but can’t afford the hefty price tab, it can be an excellent choice.
3– Up and coming neighborhoods
This neighborhood category includes Moncloa, Arganzuela and Tetuán. These neighborhoods are up and coming due to the effects of gentrification.
Rents in Moncloa averaged 15.5€/m2 in 4Q2018. Because so many colleges and universities are in the neighborhood, a large number of students live in Moncloa. But it is also a very traditional neighborhood with lots of green spaces. All of the students means Moncloa also has a lot of bars and reasonably priced restaurants and boutiques. Moreover, it is relatively international (much more so that neighboring Chamberí) and there tends to be a good deal of English spoken. It is a great choice if you are a student or like the feel of Chamberí but can’t afford the rents.
Rents in Arganzuela averaged 15.1€/m2 in 4Q2018. Except in the streets adjacent to La Latina, most of the buildings are traditional 19th and early 2oth century. One of the most interesting examples is the Atocha railway station, where the high speed trains depart from. Arganzuela is more ethnically diverse than the rest of Madrid, so if you are a fan of Indian, Thai and other interesting cuisine you will likely find yourself here. You will also like living here if you want to live very close to the action in the Center.
Rents in Tetuán averaged 14.8€/m2 in 4Q2018. It is north of Chamberí and very residential. Streets east of Bravo Murillo tend to have a much wealthier feel than those west of Bravo Murillo. It is also well connected via the Metro. It is an excellent choice if you want to live in Chamberí but can’t afford it, or work in the CBD but want a lower key (and cheaper) neighborhood.
4–Not quite the suburbs
This neighborhood category includes Hortaleza and Ciudad Lineal. Although technically in Madrid, they feel far from the Center and are not always easily reached by Metro. However, since they are not traditionally popular with renters, you can find a great apartment for a relatively cheap price- maybe even a free standing house. Moreover, both neighborhoods are relatively high-end.
Rents in Hortaleza averaged 13.1€/m2 in 4Q2018. Rents in Ciudad Lineal averaged 12.9€/m2 in 4Q2018.
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*DATA SOURCE: Deloitte 2018 Property Index