8 Best Neighbourhoods In Madrid | Time Out | Where To Stay In Madrid

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fountain of Cibeles In Madrid, Spain — Photograph: dimbar76 / Shutterstock

Photograph: dimbar76 / ShutterstockWhere to stay in Madrid to enjoy the city’s best areas

Not sure where to book in Madrid? We’ve got you covered with our area guide to the best hotels, restaurants, bars and attractions all over the city

Monday 6 January 2025ShareCopy LinkFacebookTwitterPinterestEmailWhatsApp

Written by Jan FleischerContributor: Olivia SimpsonAdvertising

Spain’s capital is a city made up of many distinct neighbourhoods, each with its own charm. From the regal Los Austrias to the arty Carabanchel; from the well-heeled Chamberí to the super-central Sol-Gran Vía; and from the multicultural Lavapies to the LGBTQ+ scene in Chueca, there’s a barrio to suit every kind of visitor.

If you’re struggling to pick a base for your trip, our guide can help you choose the area that’s just right for your taste, needs, and preferences. Here's our selection of the best neighbourhoods in Madrid. Hasta luego!

RECOMMENDED:📍 The best things to do in Madrid🏡 The best Airbnbs in Madrid🛏 The best hotels in Madrid🍴 The best restaurants in MadridThis article includes affiliate links. These links have no influence on our editorial content. For more information, click here.

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Best areas to stay in Madrid

1. Malasaña

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From its time as the epicentre of the movida madrileña (a countercultural movement in the 1980s) to becoming one of the city’s trendiest neighbourhoods, Malasaña has undergone significant transformations over the years. It's true that Malasaña’s character has changed, and that the traditional neighbourhood vibe – which can still be found in small businesses and local bars – is starting to fade, while new kinds of establishments grow in popularity. These days, contemporary restaurants, speciality coffee shops, and the city’s coolest boutiques are taking over.

Stay here: 7 Islas Hotel

2. La Latina

Photograph: Shutterstock

La Latina is the perfect place to head out for a weekend stroll, perhaps browsing the stalls of El Rastro market or enjoying an aperitif or two while you’re at it. In fact, there’s even a Spanish word for this kind of pleasurable ambling – latinear – which derives from the name of the neighbourhood. The phrase ‘adapt or die’ could well be the area’s motto, since it is constantly surprising visitors with offerings that are a hit at pretty much any time of day. La Latina’s defining feature is its versatility and its ability to transform and adapt to whatever the moment calls for: from aperitifs on its terraces to nights spent in its clubs, and, of course, dining in its trendy restaurants.

Stay here: Posada del Dragón Boutique Hotel

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3. Lavapiés

Photograph: Shutterstock

This neighbourhood embodies the cultural fusion Madrid has experienced over recent decades. Indian restaurants sit side by side with traditional Madrid taverns, and immigrants form the social fabric that keeps Lavapiés running. Every August, Lavapies’ San Lorenzo festivals bring many madrileños to explore the neighbourhood’s steep, winding streets. October’s Tapapiés, which sees the neighbourhood’s bars and restaurants serving cheap and delicious tapas has also become an unmissable event. This is a bustling area, so if you want to experience it at its authentic best, head over early in the morning to stroll through its narrow streets and watch this vibrant neighbourhood wake up.

Stay here: Hola Rooms

4. Chueca

Photograph: Shutterstock

Known as the capital’s LGBTQ+ neighbourhood and the centre of the city’s pride celebrations, Chueca has a distinctly cosmopolitan vibe – and all without losing its identity as a traditional neighbourhood. Here, you’ll find boutiques, bars and businesses run by and for the queer community, as well as others that appeal to the general public. There are plenty of old-school pubs and restaurants, too, which stand their ground even while buzzy new openings arrive in Chueca.

Stay here: Only YOU Boutique Hotel Madrid

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5. Carabanchel

Photograph: David Spence del Valle/Shutterstock

Trendy galleries, creative spaces, traditional cuisine – Carabanchel is to Madrid what SoHo is to New York and in 2023, we named it one of the coolest neighbourhoods in the world. This neighbourhood in the south of the city was developed as a working-class area on the outskirts of the city but over the years, it’s become a destination in itself, where cutting-edge thinking and tradition come together. From seeing some art at Veta Art Gallery, sampling traditional tapas at La Casa de los Minutejos, enjoying a concert at Gruta 77 or experiencing the San Isidro festival celebrations every May, there’s a whole lot to love in this varied neighbourhood.

Stay here: B&B Hotel Madrid Carabanchel

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6. Los Austrias

Photograph: Shutterstock

Los Austrias is home to monuments, churches and palaces and is one of the capital’s most historic areas. From the Almudena Cathedral to the Plaza Mayor, the architectural beauty of these landmarks attracts countless tourists, who marvel at the craftsmanship of Madrid’s ancestors. Local restaurants serve cocido madrileño (a traditional local stew), while the Sabatini Gardens offer a haven for weary travellers to cool off by their fountains.

Stay here: Petit Palace Posada del Peine

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7. Chamberí

Lucila Godoy

Once used as hunting grounds and later home to the city’s aristocrats, Chamberí has always been in constant flux. This is a traditional, well-heeled neighbourhood that’s free from the touristy hustle and bustle of the city centre. With wide streets and flats going for eye-watering prices, it has become a hotspot for fine dining and classy restaurants. Not just thanks to the revitalization of Calle Ponzano – an obligatory pilgrimage for fans of tapas crawls and good food – but also because of the traditional restaurants and taverns that have withstood the test of time. Chamberí has always been known for its traditional tiled taverns complete with traditional steel bars, where you can have a couple of cañas (small beers) or a Sunday vermut (a Madrid tradition), surrounded by locals. What this area lacks in green spaces (parks are few and far between) it makes up for in awe-inspiring architecture, as well as its cultural spaces that survive especially thanks to an older population that still go to the cinema, the theatre and art museums. Here, you can still find that eclectic equilibrium between tradition and the cutting edge which has been lost in other areas of Madrid.

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8. Barrio de las Letras

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Once home to the great writers of the Golden Age of Spanish literature, including Cervantes and Quevedo, these days Las Letras houses some of Madrid’s most important museums: the Prado Museum, the Reina Sofía and the Thyssen-Bornemisza. Calle Huertas is its most important street and on the popular Plaza de Santa Ana, you’ll find lots of terraces where you can enjoy a drink or a bite to eat. In recent years, the area has undergone a transformation: where cheaper options once dominated, you’ll now find a variety of chic shops selling everything from clothing and accessories to home décor), restaurants to suit every budget (from Michelin-starred dining to grill houses and market-style cuisine), and bars for all kinds of occasions. One thing hasn’t changed: the nightlife remains as lively as ever in this strategic hub in the heart of Madrid.

Stay here: Me Madrid Reina Victoria by Meliá

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9. Sol-Gran Vía

El Oso y el Madroño

We’d feel pretty confident saying that the Sol area in Madrid is the biggest draw for tourists coming to the capital. It's not just because it’s the very heart of the city, home to iconic landmarks like the Puerta del Sol – where you’ll find the statue of El Oso y el Madroño (the Bear and the Strawberry Tree), which is the symbol of the city – but also because of everything its surrounding streets have to offer. This is the perfect area for some retail therapy: on Gran Vía, you'll find large, well-known stores belonging to major chains, but you’ll also find authentic shops offering handmade products nearby, perfect if you’re looking to pick up original and unique souvenirs.

Stay here: Dear Hotel Madrid

8 Best Neighbourhoods In Madrid | Time Out | Where To Stay In Madrid

Best areas to stay in Madrid

1. Malasaña

2. La Latina

3. Lavapiés

4. Chueca

5. Carabanchel

6. Los Austrias

7. Chamberí

8. Barrio de las Letras

9. Sol-Gran Vía

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