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Which neighbourhoods in Madrid are best for investment?

madrid apartments

Choosing the perfect neighbourhood to move to in Madrid is not an easy decision to make. And choosing the perfect neighbourhood for you is determined by what motivates you rather than how an area has been ranked generally. In this post, we will present some important questions you need to ask yourself. As well as which neighbourhoods will allow you to achieve your individual investment goals.

So which is the best neighbourhood in Madrid to invest in?

In order to answer this question, you will need to consider both your personal budget and what you hope to achieve from the investment. We have provided a number of options, listed from most to least expensive.

Exclusive locations

  • Salamanca. Ideal for high end shopping and steeped in history.
  • Justicia/Almagro. A classy location, immersed in parisian-like design.
  • Opera el Madrid de los Austrias. Area steeped in history and culture whilst being truly authentic.
  • Las letras/Cortes. Also steeped in culture and history. As well as being good for food.

Trendy areas suitable for short term rentals

  • Chueca. A traditional yet trendy neighbourhood. Particularly popular with the gay community.
  • Malasana. Perfect for hipsters. Contains a vast array of bars and steeped in rich history.
  • La Latina. A traditional and historic locality which also happens to be excellent for tapas.
  • Sol & Gran Via. A social hub. Perfect for entertainment, shopping and dining.

Capital appreciation or smaller budgets

  • Lavapies/Anton Martin. Value for money right in the city centre.
  • Chamberi. Large apartments within walking distance of the city centre.
  • Chamartin. Perfect for those that work in the business district North of Madrid.
  • Moncloa/Arguelles. Good for students and families.
  • Retiro. Ideal for families. Also located close to the park.

Madrid Calle de Lagasca

Is it worth investing in high end neighbourhoods or would it be better to go for a budget one?

It really depends on how much you have to spend. If your budget is less than 4000 euros per square meter, look at cheaper neighbourhoods. Otherwise, look at premium neighbourhoods where a higher return can be yielded.

Normally, high value neighbourhoods are safe investments. However, if you are looking for a neighbourhood that remains fairly consistent in yield, Salamanca is a good choice. Properties around here are also easy to sell.

Are you looking to invest in Madrid?

Request a free investment pack today and see how we can help.