​​​​​​​Best neighborhoods to stay in Madrid | Study or work abroad in Madrid

It is pretty common that when you know you are coming to a new destination for a while, you rarely know anything about the new city but its name.

So logically, you do not know where to stay in Madrid. You can see a map of the city but many doubts come up like, what are the most common student areas in Madrid? What is the best neighborhood in Madrid according to my budget?

We want to ease that process by getting you to know Madrid way better, its neighborhoods, what characterizes them, what do they offer. This way, at the end of this post you can have an accurate idea of the best places to live in Madrid, and to choose the best area of Madrid where you will probably get your house to enjoy your upcoming experience.

Best places to stay in Madrid:



This neighborhood includes the districts of Moncloa, Arguelles, Chamberí, Gaztambide and Rios Rosas. Those neighborhoods are fantastic to live in, especially for young people The average price of a single room is 494 €/month and for a full apartment (one room + one bathroom + kitchen + living room) is close to 1.265€/month.

Moncloa is by far one of the most popular neighborhoods in Madrid for students. Neither noisy nor quiet, neither central nor far away, Moncloa has everything you need to move to any university. With green spaces where you can relax and gastronomic places everywhere, La Moncloa deserves to be at the top of the list.



This neighborhood includes the districts of Malasaña (Universidad), Chueca (Justicia), Sol, Cortes, Palacio and Embajadores. If you are into nightlife, this is the place to go! Sol is full of clubs, bars, terraces, malls, stores and touristic attractions. The average price of a single room is 482 €/month and for a full apartment (one room + one bathroom + kitchen + living room) is close to 1.179 €/month.


  • Malasaña (Universidad Neighborhood)

Bohemian, fun and always alive. The district of Malsaña is ideal for students and teenagers in love with an alternative atmosphere, in search of their own ideals and tastes. Art galleries, bars hidden in every corner and shops where you get everything you need, are piled up in this neighborhood that is presented as one of the preferred by college students to live in Madrid.

  • La Latina (Palacio Neighborhood – South part of the district)

This is a neighborhood characterized by its wide offer of gastronomic services, in which to enjoy a moment of fun with colleagues or friends. La Latina is a relatively cheap neighborhood for students to stay in Madrid, as there are numerous old buildings looking for residents. With not-too-expensive apartments and guaranteed fun, this is one of the best neighborhoods that college students can find in Madrid.

  • Chueca (Justicia Neighborhood)

Chueca is not an official neighborhood of Madrid, it is just an area of the Justicia neighborhood located next to the Gran Via and between Fuencarral and Barquillo streets. Chueca has the peculiarity that it has been chosen as a place of residence by a large part of the homosexual community.

Next to the bars, you will also find multiple shops and pop-ups, and a great atmosphere thanks to its architecture, narrow streets, squares and buildings full of balconies.

All this makes it a good place to live and walk at any time of day and night without having to worry about anything or anyone. You can eat at the Mercado de San Antón or have a party any day of the week for any of its premises open until late hours.

  • Lavapiés (Embajadores Neighborhood)

Economical but entertaining, Lavapiés is home to large numbers of foreign and domestic students who find affordable prices to rent apartments in good condition and companions with whom to enjoy leisure evenings. The multicultural character of the neighborhood is one of its greatest attractions, getting the attention of all kinds of students.

  • Gran Vía - Sol

The surroundings of the most iconic street of Gran Vía are characterized by buildings with a unique architectural beauty and apartments desired by any anyone who stops to watch them. The central district of Madrid offers students the best opportunities for transportation, and access to services of all kinds, making this neighborhood one of the best options for their stay in Madrid.


This neighborhood includes the zones of Plaza Castilla, Cuatro Caminos, Valdeacederas, Cuzco and Berruguete. It's well commuted with downtown Madrid. Even though it's not the most central part of Madrid you will find great deals. The average price of a single room is 438 €/month and for a full apartment (one room + one bathroom + kitchen + living room) is close to 1.104 €/month.

Perhaps less touristy and more tranquil, it combines the traditional Madrid with the modern and financial Azca. A lot of commercial and diurnal life are part of its proposal, in addition to the nice connections to Madrid city center.

This area of Madrid offers the most economic prices. Being perhaps an area with less glamor or interest for night out than the previous ones, it is a very commercial and well communicated neighborhood, and its proximity to Plaza de Castilla makes it a great alternative for those who have to move to the university from this area.


Another of the neighborhoods near the most central areas of Madrid is the Salamanca district, one of the most expensive areas to rent a room or apartment in the capital.

Salamanca neighborhood is delimited by the Paseo de la Castellana and the Retiro Park. Inside this neighborhood you will find the commercial establishments of the most exclusive brands and a lot of services and cultural offer around you. So if you are looking for good areas to live in Madrid but also for a cheap price for your room, this is probably not one of the best options.

It is the golden neighborhood of Madrid so get ready for monthly rentals that can range from 1000€ to 3000€ for a studio flat or 2-bedroom apartment or 573 € per month for a single room.

Choosing the neighborhood in which you are going to live during the next months in Madrid is a very important decision since it’s going to be a key part of your experience abroad.

The rent prices mentioned in this article change over time. Check RentIndicator.com for an up-to-date overview of rent prices per district and subdistrict in Madrid and start looking for your new home in Madrid with Setafoot

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If you still have some doubts after reading this post on which area of Madrid you should choose, we will be happy to help you! You can send us an email or chat with us by facebook


We know the process of moving into Madrid is more complex and does not finish when booking your accommodation. If you need some information on how to open a bank account, getting a Spanish SIM card, hiring your insurance policy for your experience abroad, acquiring the Madrid Public Transportation Card or even finding cheap flights from your country to Madrid, feel free to email us as well or visit our webpage.

Hope all this information was useful for you. Madrid is a great city and it’s waiting for you! Please contact us for any help you may need during the process of moving to Madrid, we will be more than pleased to help!