Choosing the best area to stay in Madrid can be challenging, especially with so many cool neighbourhoods to consider.
This article covers the best neighbourhoods to stay in Madrid because I know how finding the perfect base for your holiday involves balancing convenience, safety, budget and an authentic experience.
This Madrid neighbourhood guide will help you navigate the city, offering practical insights into the best places to stay based on your travel needs. For each area, I will share:
- descriptor of the neighbourhood with recommended hotel and vacation rental
- top attractions
- pros and cons
- recommended restaurants
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Overview of Where to Stay in Madrid
If you don’t have time to read the entire article, here is a quick descriptor of the cool neighbourhoods in Madrid, called Barrio.
| Centro (Gran Vía, Austrias) | The heart of Madrid with the city’s top landmarks |
| Malasaña | A boho neighbourhood filled with vintage shops and nightlife |
| La Latina | A historic area with traditional tapas bars and a laid-back vibe |
| Chueca | LGBTQ+ friendly with lots of trendy bars and eclectic eateries |
| Lavapiés | A multicultural neighbourhood with diverse food options |
| Barrio de las Letras | Historic neighbourhood associated with famous Spanish writers |
| Retiro | Next to Madrid’s urban park with easy access to top museums |
| Salamanca | An upscale area known for its luxe shopping and fine dining |
Where I Stayed in Madrid: Barrio de las Letras
Barrio de las Letras exudes a vibrant, artistic atmosphere with its cobblestone streets, historic literary landmarks, and lively cafes, making it ideal for travellers who appreciate culture, history, and a dynamic, central location.
Barrio de las Letras lies between the Centro district and lovely Retiro district and the eclectic charm of Lavapiés. As a solo traveller, I felt very safe in this neighbourhood day and night.
I stayed in a cozy studio apartment and found this neighbourhood, steeped in literary history, was the perfect base for exploring Madrid. The apartment was bright and stylish, with large windows that opened onto a Juliet balcony—an ideal spot for my morning tea and an evening glass of wine (with a bottle gifted by the host).
After a day of exploring the top things to do in Madrid, I would relax on the sofa before heading back out for a late-night dinner nearby or preparing a simple dinner in the well-equipped kitchen. The best part of this holiday rental was the rooftop terrace offered stunning views of the city.
Overview of Barrio de las Letras
Pros & Cons:
- ➕ Central location to Prado Museum, Retiro Park
- ➖ Some pockets were a little lively in the evening, so choose accommodations on a side street for a quieter experience (my vacation rental was very quiet)
Top Attractions:
- The notable street of C. de las Huertas and narrow streets of C. de Fúcar, C. del León
My Favourite Restaurants:
- Taberna El Alambique: traditional Spanish bistro on the bottom floor of the apartment building
- Casa de Diego: authentic neighbourhood bistro with charming decor and delicious food
Best Places to Stay in Madrid by Neighbourhood
Centro (Gran Vía, Austrias)
This is the energetic core of the city center and the reason why travellers love visiting Madrid, known for its busy streets day and night, vibrant nightlife, and grand architectural landmarks.
It’s perfect for travellers who thrive on being in the heart of the city close to action. Gran Vía is located in the very center of Madrid and is bordered by Malasaña’s to the north, La Latina to the north.
Overview of Centro (Gran Vía, Austrias)
Pros & Cons:
- ➕ Central location with easy access to major attractions
- ➖ Can be noisy and crowded, especially at night
- ➖ Touristy with lots of shopping, dining and entertainment catering to tourists
Top Attractions:
- Plaza Mayor, Puerta del Sol, Mercado de San Miguel, Royal Palace
- Gran Vía landmarks like the Metropolis Building and Telefónica
My Favourite Restaurant:
- Botín – the oldest restaurant in the world (1725) according to the Guinness Book of Records
Recommended Best Place to Stay in Madrid Spain
These were the two options I had my eye on in Centro Madrid.
Malasaña
Malasaña is a trendy, bohemian neighbourhood filled with vintage shops, eclectic bars, and a youthful, artistic vibe, attracting travellers who love alternative culture and a vibrant nightlife scene. I found this area in Madrid a bit too touristy for me.
Located just north of Gran Vía in central Madrid, it’s bordered by the more upscale Chamberí residential area to the north and the Chueca district to the east.
Overview of Malasaña
Pros & Cons:
- ➕ Rich in character, cool atmosphere and within walking distance to the city center
- ➖ Can be noisy and crowded, especially on weekends
- ➖ Bit on the touristy side
Top Attractions:
- Museum of Contemporary Art and Liria Palace
- Notable street of C. del Dos de Mayo
Restaurants:
- I didn’t eat in this neighbourhood other than popping into Misión Café for tea and a baked good. Also when I researched notable restaurants (Food & Wine, Forbes, Conde Nast) nothing came up in this neighbourhood
Madrid Best Places to Stay in Malasaña
I had bookmarked these two options for this neighbourhood.
La Latina
La Latina is a historic neighbourhood known for its narrow, winding streets, traditional tapas bars, and a laid-back, authentic Madrid atmosphere, making it ideal for travellers who appreciate the local culture and a slower pace.
La Latina is below Centro Madrid and is bordered by Lavapiés to the east.
Overview of La Latina
Pros & Cons:
- ➕ Excellent for tapas hopping and experiencing traditional Madrid
- ➕ Lots of charming, picturesque streets with a great neighbourhood feel
- ➖ It’s a small area and feels crowded, especially during weekend markets
Top Attractions:
- Museo de San Isidro and the notable street of C. de la Cava Baja full of tapas bars
- A must is the Sunday flea and antique market
My Favourite Restaurant:
- Los Huevos de Lucio: any restaurant that features so many egg dishes will always be a favourite of mine
Best Areas to Stay in Madrid in La Latina:
These were the two places I had saved as my favourites when looking for a place to stay in Madrid.
Chueca
Chueca is a lively, inclusive neighbourhood known for its LGBTQ+ scene, trendy boutiques, and eclectic eateries. It will appeal to travellers who thrive on a lively nightlife and diverse atmosphere.
Chueca is located just north of Gran Vía in central Madrid and lies between Salamanca district to the east and Malasaña to the west. After spending almost two weeks in the city, this would be among my top 3 picks of best places to stay in Madrid.
Overview of Chueca
Pros & Cons:
- ➕ welcoming, diverse community
- ➕ trendy dining options that kept me returning
- ➖ higher prices due to its popularity and central location
Top Attractions:
- Museo del Romanticismo, History Museum of Madrid
My Favourite Restaurants:
- Davanti Ristorante: an Italian restaurant with a gourmet shop
- Roostiq: the elevated organic restaurant that is a must for foodies, being a vegetarian and knowing that their vegetable dishes came directly from their farm was a big draw for me
- La Barraca: the Valencian restaurant featuring the famous rice dishes that Valencia is worth visiting for
Best Place to Stay in Madrid in Chueca
I had both of these places saved and almost booked at either.
Lavapiés
Lavapiés is a multicultural neighbourhood known for its vibrant street art and diverse culinary scene. This makes for a great spot for travellers who seek an authentic and eclectic experience in Madrid.
Lavapiés is bordered by La Latina to the west and Centro and Las Letras districts to the north. There were pockets of this neighbourhood that were a bit too grungy for me, it is large, so there are some good areas mixed with not-so-good areas.
Overview of Lavapiés
Pros & Cons:
- ➕ Affordable and diverse eateries
- ➖ Some areas feel gritty or less polished and can be less convenient for tacking your Madrid itinerary
Top Attractions:
- Museo Nacional Centro de Arte Reina Sofía
- Authentic food markets of Antón Martín and San Fernando Market
My Favourite Restaurants:
- Pizza Posta: hipster pizza joint that I did take away but you can dine in
- La Burlona Bar: trendy tapas bar, however like the vibes better than the food
Madrid Places to Stay in Lavapiés:
I ruled out staying in this neighbourhood as it lacked the accommodations that appealed to me. But found two options that are among the best.
Retiro
Retiro offers a quieter and more sophisticated atmosphere with its proximity to the expansive Retiro Park. It is ideal for travellers who enjoy green spaces, cultural attractions, and a more relaxed environment.
Retiro is bordered by the Salamanca district to the north and Barrio de las Letras to the west.
Overview of Retiro
Pros & Cons:
- ➕ Proximity to Retiro Park and the art museums
- ➖ Slightly removed from some of the city’s main attractions (if staying south/east of the park)
- ➖ Fewer nightlife and dining options compared to more central areas, I didn’t eat at any of the restaurants in this neighbourhood
Top Attractions:
- Retiro Park, Prado Museum, Palacio de Cibeles
Recommended Places to Stay:
I ruled out staying in this district, although I did have all the Only YOU hotels on my radar as an option.
Salamanca
Salamanca is a lovely upscale and elegant neighbourhood I fell in love with. For travellers who adore being surrounded by luxury shopping, fine dining, and stylish boulevards you’ll enjoy this refined and sophisticated environment.
This area in Madrid is located north of the Retiro area next to the Chueca neighbourhood to the west.
Overview of Salamanca
Pros & Cons:
- ➕ Safe, quiet, and offers high-end amenities and boutique shopping
- ➕ Beautiful, wide streets with stunning architecture
- ➖ Expectedly more expensive compared to other Madrid neighborhoods and less of a nightlife scene
Top Attractions:
- Biblioteca Nacional de España, Museo Arte Público,
- Mercado de la Paz (my preferred market in Madrid)
My Favourite Restaurants:
- Casa Dani: traditional tapas bar in the Mercado de la Paz which is a popular spot for locals
- Il Tavolo Verde: an organic cafe that is also a vintage shop
Recommended Stays in this Neighbourhood:
Final Thoughts
Now for the tough part, let me rank each of the 8 neighbourhoods as the best location to stay in Madrid:
- Barrio de las Letras
- Chueca
- Salamanca
- Retiro
- Malasaña
- La Latina
- Centro (Gran Vía, Austrias)
- Lavapiés
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