Renting in Spain’s capital now costs on average €17.4/m2, which means that a 70 square metre apartment is going for €1,218 a month.

That’s more than 60 percent costlier than it used to be for tenants in Madrid a decade ago, a trend which has been seen across Spain’s big cities and elsewhere around the world. 

There’s also the fact that there are not enough well-priced properties to rent in the capital, as short-term holiday lets proliferate and landlords drive up prices to deal with their rising costs and mortgage interest rates. 

It’s a cutthroat market where you have to move quickly and often cough up a huge deposit for not much in return.

As usual, people who want to cut costs and get a better alquiler have to move further out of the city to bag the good deals.

According to Spain’s main property websites Idealista and Fotocasa, the neighbourhoods in Madrid city where it’s cheapest to rent as of September 2023 are:

Vicálvaro (€11.9/m2): To the east of the city, it has four metro stations and one train station and plenty of supermarkets. There are of course better neighbourhoods

Villaverde (€12.5/m2): Divided into Villaverde Alto and Villaverde Bajo, it’s located in southern Madrid, connected to the city centre via Line 3 and several buses, as well as having plenty of green spaces. Villaverde is multicultural, residential and has a better reputation than it used to.

Moratalaz (€12.6/m2): Another barrio in southern Madrid that’s cheaper than average to rent in, it’s known for being peaceful and well connected (you can reach Sol or Atocha in under 30 minutes by metro or bus).

Vallecas (€13.5/m2 to €14.5/m2): The traditional working class neighbourhood of Vallecas offers affordable rents, more so in La Villa de Vallecas than Puente de Vallecas, as the latter is more central. It has some dodgier areas, but for the most parts it’s good old lively and safe Madrid.

San Blas-Canillejas (€14.08/m2): Despite being a barrio of ill repute for decades due to drug problems that are long gone, San Blas is among the safest districts in Madrid nowadays, and shares some of the qualities of the aforementioned neighbourhoods: family friendly, multicultural, green and well connected. 

Hortaleza (€14.2/m2): This district is in Madrid’s wealthier northern half, and is very well equipped with everything from public libraries to health centres, sports facilities, parks and more. Hortaleza has 14 metro stations, two train stations and it has fast road access to the city centre. 

Renting in the Community of Madrid

Around half of the region of Madrid’s 6.6 million inhabitants live outside of the city walls of the capital in other towns and villages, many of which are well connected via buses, Cercanías trains and motorways.

You may still have to commute for around an hour if you work in Madrid city centre but depending on your personal circumstances life in a quieter part of the region that’s still close to the capital could be what suits you best. 

It’s also possible that you’ll be able to find a bigger place to rent for less.

San Sebastián de los Reyes (€12.2/m2): It takes around 50 minutes to reach this municipality to the north of Madrid from the city centre and even less by car. ‘Sanse’ is more of its own town with a bigger array of shops, bars and even festivals, when compared to some of the more residential neighbourhoods on this list.  

Torrejón de Ardoz (€10.7/m2): Close to Barajas airport, Torrejón is another separate municipality from Madrid city, a pleasant town which is home to the European Union Satellite Centre and that overall has plenty of character.

Aranjuez (€8.5/m2): This historic town on the outer limits of the Community of Madrid is technically closer to Toledo than it is to Spain’s capital, but it’s still possible to reach the centre in under an hour by car. Aranjuez has lots of majestic buildings and gardens, and even a royal palace.