Average Apartment Prices in Madrid by Neighborhood (Updated 2026)

Madrid real estate prices vary significantly by neighborhood. Salamanca and Retiro often sit at the top of the market, while areas like Tetuán, Carabanchel, and Usera can offer better affordability and higher growth potential. This article explains typical price ranges, what drives the difference (transport access, property age, tourism demand, and amenities), and how to compare neighborhoods correctly. We also explain the difference between renovated vs. original condition properties and why the same street can have large pricing gaps based on building quality. If you’re buying in Madrid, use price-per-square-meter as a baseline, then evaluate the building’s elevator availability, energy efficiency, and renovation costs. For investors, focus on neighborhoods with steady tenant demand and near universities, business areas, or metro stations.