Renting in Madrid: Costs, best areas, and how it compares to London

Name a favourite capital city in mainland Europe and there are plenty who would give a shout-out for Madrid, Spain’s business-minded city where the supremely sociable residents know how to party.

Daisy Greville Williams from Scotland fell for Madrid after she spent six months there in 2018 as part of her language degree. The experience was so memorable that within a month of graduating in the UK a year later, she returned and has rented in Madrid for over three years.

Daisy, 26, works in comms for a renewable energy firm. Here she tells her rental story:

“When I decided to return to Madrid, I was looking for a flat share with two friends from the UK but it was difficult because we weren’t there to visit ourselves. Eventually, after a friend in Madrid looked at places for us, we found a three-bedroom flat in Malasaña, a lively, busy, fun and touristy area, right in the thick of things.

“It’s where we quarantined for a year during lockdown which was super strict in Madrid. Later on, when lockdown eased slightly and house moves were allowed, I moved to Lavapiés.

“In all I have moved five times, most recently in March this year when I moved in with my partner Simon in Chamberí. This is an area just north of the centre that’s less touristy and has a good neighbourhood vibe with plenty of young couples, many with dogs or babies.

“We pay €1,200 plus bills for our one-bedroom flat of around 75 square metres. It’s on the fifth floor, a good flat with a huge communal terrace on the floor above us which no one but us seems to use.

“Like most older flats in the city, it is not modernised so it’s fairly old-fashioned and there’s no lift, but we like it here and the lack of a lift is one reason why we pay a relatively good price. Our landlady died of Covid leaving the flat to her son who lives in Amsterdam and he has been very reasonable as a landlord.

“Recently the fridge broke and he sorted it out immediately. He trusts us to look after the flat and we do.

“In the years I’ve been in Madrid, renting has become more like London,” says Daisy. “Prices have risen steeply and it is much more difficult to find a good property.

“Agency fees are very high, you generally must pay two months at least in advance as a deposit and I’ve found that many landlords are less eager to rent to ex-pats, probably because they find it easier to check the bank accounts and details of a Spaniard. A further frustration is that it is compulsory to rent for a minimum of one year.”

“The areas popular with younger people are Chamberí, La Latina, Malasaña, Chueca and Lavapiés. Sol, right in the centre, is best avoided for longer-term residents as it is so touristy and busy.”

Madrid is Europe’s second largest city, after Berlin, an international hub for Latin America and the economic powerhouse of Spain, filled with art and culture. It has over twenty Michelin-starred restaurants but also offers excellent value with a good choice of intimate, atmospheric tapas bars.

In Mercer’s 2022 Cost of Living City Ranking, headed by Hong Kong, Zurich and Geneva as the most expensive cities to live, Madrid was way down in 90th place, decidedly more affordable than London, Berlin, Edinburgh, Glasgow and even Barcelona, Spain’s number one tourist city.

Barcelona might grab the headlines for its beaches and Gaudi’s architecture but Madrid is becoming increasingly popular and pre-pandemic, the cost of renting property had risen steeply. Knight Frank figures show rents rose 45 per cent between 2014 and 2019, reaching €16 per square metre in 2019 before falling back during Covid.

Rental website Houseinganywhere.com puts the average cost of monthly rent from €808 for a furnished private room and €1,260 for a one-bedroom apartment. The average this summer was just over €14 per square metre, a rise of 2.5 per cent in the past year.

City authorities impose no rent controls and show no desire to introduce them: when the left-wing Spanish government passed wide-ranging rent control in February 2022 as part of its “right to housing” laws, the autonomous region of Madrid immediately responded by saying it would not implement them.

Considering a move to Madrid? Some websites to help include: