Buoyed by a dynamic economy, Madrid's real estate market is now the strongest in Spain. In autumn 2025, the average purchase price was €5,677/m² (+19.4% year-on-year, Idealista), more than double the national average(€2,517/m²), but some districts and neighborhoods offer significantly lower prices.
For example, the average price per square meter in Madrid's most expensive district, Salamanca (€9,706/m²), is more than three times higher than in the least expensive district, Usera (€3,177/m²)!
Salamanca vs. Usera: Madrid's great real estate divide
So, where can you buy at a reasonable price in Madrid? What are the cheapest neighborhoods and districts inside and outside the famous M-30, Madrid's ring road? Terreta Spain takes stock.
You can locate the zones and view their prices on our interactive map.
Image titleInteractive map of Madrid neighborhoods and districts mentioned in the article - allows you to view location, price per m2 to buy and price to rent.
| In brief - You're in a hurry but want to understand? Madrid's real estate market is at its peak: €5,677/m², twice the national average. The M-30 divides the capital in two: inside, prices are high, valuations are strong but entry tickets are high; outside, prices are half as expensive and rental yields are climbing. Cheapest neighborhoods inside the M-30: Ventilla-Almenara (Tetuán), Delicias (Arganzuela), Adelfas (Retiro), El Plantio (Moncloa), Lavapiés (Centro).Best plans extra M-30: Villaverde, Usera, Puente de Vallecas, Carabanchel and Latina combine low budgets, high demand and rapidly rising prices. Terreta Spain tip: buying intra M-30 means securing your investment; buying extra M-30 means betting on profitability and the potential for capital gains in the medium term. |
What is the M-30?
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The M-30 is Madrid's main ring road, a 32.5 km urban freeway that has encircled the heart of the Spanish capital since 1974. In real estate terms, it isa natural and strategic boundary that determines the profile of neighborhoods, their prices and their rental appeal.
The districts and neighborhoods within the M-30 are those located inside the ring (la almendra central, "the central almond"): high value, high demand, but substantial budget: Centro, Arganzuela, Retiro, Salamanca, Chamartín, Tetuán y Chamberí. The City Council sometimes includes part of the Moncloa-Aravaca district and the Ciudad Universitaria neighborhood.
- Average price within M-30: €6,000 - €7,000/m², with some areas significantly lower and others significantly higher.
- Madrid's most expensive district is Salamanca, comprising six neighborhoods: Castellana, Fuente del Berro, Goya, Guindalera, Lista and Recoletos. The average price here is €9,706/m², with a peak of €10,890/m² in Recoletos, the area's most exclusive neighborhood.
- Intra M-30 gross profitability: around 4%.
Conversely, in the extra M-30 districts and neighborhoods, the average budget is lower, but returns are very good. Recently, the potential for added value has been strong. Especially in the south and southeast.
- Average price extra M-30: €2,500 - €3,500/m², with very marked growth.
- Madrid's most affordable district is Usera, made up of seven neighborhoods: 12 de Octubre-Orcasur, Almendrales, Moscardó, Orcasitas, Pradolongo, San Fermín and Zofío. The average price is €3,177/m², with a minimum of €2,391/m² in 12 de Octubre-Orcasur, the least expensive district in Usera.
- Gross profitability extra M-30: around 6.5-7%.
Image title: Madrid: the great real estate gap between the 12 de Octubre-Orcasur district (Usera) at €2,391/m² and the Recoletos district (Salamanca) at €10,890/m².
To get a quick idea of the intra M-30 versus extra M-30 price breakdown, take a look at our map and table below.
In red, prices inside the M-30
In black, those outside the M-30
Sources: Idealista, Terreta Spain
| District | Price m2 Sep 2025 | Rent m2 Sep 2025 | Rentabilidad bruta |
| Rascanya | 2.190 € | 14,0 € | 7,7% |
| L'Olivereta | 2.458 € | 14,3 € | 7,0% |
| Benicalap | 2.491 € | 14,7 € | 7,1% |
| Patraix | 2.667 € | 13,3 € | 6,0% |
| Jesús | 2.775 € | 13,4 € | 5,8% |
| Benimaclet | 2.940 € | 13,3 € | 5,4% |
| Poblats Marítims | 2.997 € | 16,5 € | 6,6% |
| València (average) | 3.227 € | 15,4 € | 5,7% |
| Quatre Carreres | 3.249 € | 15,3 € | 5,7% |
| Algirós | 3.307 € | 13,7 € | 5,0% |
| Camins al Grau | 3.403 € | 15,4 € | 5,4% |
| Campanar | 3.408 € | 15,3 € | 5,4% |
| Extramurs | 3.572 € | 15,6 € | 5,2% |
| El Pla del Real | 4.073 € | 14,9 € | 4,4% |
| Ciutat Vella | 4.536 € | 19,2 € | 5,1% |
| L’Eixample | 4.895 € | 18,1 € | 4,4% |
Top 5 cheapest districts and neighborhoods in Madrid intra M-30
Inside the M-30, it's a bit like inside the Paris ring road or the M25 in London: it's hard to find areas where the average budget for an 80 m² apartment is below €400,000. Only one district within the M-30 offers values per square metre below the city average.
Tetuán district
Tetuán is a rapidly evolving district north of central Madrid. With the charm of traditional streets and the emergence of modern high-rises, the district is changing its face. Lively, multicultural and well served, it offers good medium-term value potential. In a capital where prices are constantly on the rise, Tetuán is still an accessible sector not to be overlooked.
- Average purchase price: €5,643/m², +21% over the year (Idealista)
- Rent per square metre: €22/m², +10%.
- Gross yield: 4.7
- Average entry price for 80 m²: €451,200
Price trend, Tetuán since 2006
Source: Idealista
Within the district, focus on the Ventilla-Almenara neighbourhood :
- Purchase price: €4,992/m², + 22%. This is the least expensive district in Madrid intramuros.
- Rent per square metre: €22/m², + 7.6%.
- Gross yield: 5.3
- Entry ticket: under €400,000, €399,360 precisely
Terreta Spain tip: Ventilla and, more broadly, Tetuán, are ideal areas for student investment. In this fast-changing district, small surface areas and renovated properties suitable for sharing are a priority. Terreta Spain is also your partner for renovation and rental management. Contact our team.
Arganzuela
Arganzuela is an upmarket district to the south of Madrid. It is both green, thanks to its direct access to Madrid Río, the large urban park to the south of the city, well connected to the city center and culturally dynamic. Arganzuela attracts families and young professionals. Its real estate market is still attractively priced, with strong rental demand.
- Purchase price: €5,950/m² , +19% over the year
- Rent per square meter: €21/m² , + 5.4%.
- Gross yield: 4.2
- Initial investment: €476,000
Price trend, Arganzuela since 2007
Source: Idealista
Focus on the Delicias neighborhood, where the purchase price is €200 less than the district average.
- Purchase price: €5,720/m², + 14.4
- Average rental price: €21.4/m², +0.7
- Gross profitability: 4.5
- Ticket price: €457,600
💡 Terreta Spain tip: Arganzuela is a real bargain (green, well-frequented, constant rental demand, improvement work in progress) and a strategic choice. Betting on Arganzuela means anticipating the next rising wave in Madrid's real estate market.
Adelfas, Retiro
In one of Madrid's most premium districts, Retiro (€7,822/sq.m and €23.7/sq.m), the Adelfas neighborhood is a real UFO. At the end of 2025, prices per square meter will be almost €2,000 less expensive.
- Purchase price: €5,815/m², +13.8% over the year
- Rental price: €19.5/m², +4%.
- Gross yields: 4%.
- Ticket price: €465,200
Terreta Spain tip: Adelfas is less expensive because it's closer to the M-30, so don't delay if your aim is to buy in Madrid's inner city.
Moncloa-Aracava
The Madrid region is home to over 300,000 students, and Moncloa is the student district par excellence. Located to the west of Madrid, it has two major assets: the Ciudad Universitaria and the Casa de Campo, Madrid's largest park. The area is therefore perfect for student investment in shared accommodation.
- Purchase price: €6,074/m², +21% over the year
- Average rental price: €21/m², +8%.
- Gross yield: 4.1%, up to +50% for shared accommodation
- Entrance fee: €485,900
💡 Terreta Spain tip: in Moncloa, no rental vacancies in sight. Target properties close to the faculties and favor large surfaces, with several bedrooms to accelerate your returns thanks to shared accommodation: +50% on average for an 80 m² apartment with 3 bedrooms!
Price trend, Moncloa since 2007
Source: Idealista
In the district, there's one island below the 4,000 €/m² mark, 3,930 €/m² to be precise: the El Plantio neighborhood. With a 30% increase over the year, El Plantio is a quiet area close to Monte del Pilar, a forested area on the western edge of the capital.
- Ticket price for El Plantio: €314,400, very affordable for Madrid's inner city.
💡 Terreta Spain tip: El Plantio is a great plan for Madrid intra-muros. Perfect for a first-time buyer with a nice budget or to consolidate your assets in the Spanish belle.
Lavapiés, in the Centro district
Centro is one of Madrid's most expensive districts (€7,251/m²), but in the heart of it all, a square meter is €1,000 cheaper in the bohemian Lavapiés district. A multicultural nugget with the feel of London's Shoreditch, it exudes creativity around every corner. Street art, alternative bars, cosmopolitan student atmosphere, Reina Sofia and more. Lavapiés is our favorite.
- Purchase price: €6,111/m², +22.2% over the year
- Average rent: €25.7/m², +11.7%.
- Gross yield: 5%, which is very attractive for central Madrid!
- Ticket price: €488,900
Price trend, Centro district since 2007
Source: Idealista
Terreta Spain tip: if you've got the budget, don't hesitate. Lavapiès is a thriving neighborhood that attracts Erasmus students and young expatriates. Our team can find the property that ticks (almost) all your boxes. Contact us for more information.
Madrid is divided into 21 districts and 131 neighborhoods(barrios), each with very different price levels depending on their location. Below are the most affordable districts, and for each, the least expensive barrios. For example, Lavapiés, located in the Centro district, is one of Madrid's most affordable neighborhoods, while a neighborhood like Recoletos (in the Salamanca district) achieves an average price of around €10,890/m² - almost 78% more than Lavapiés.
Comparison of the cheapest prices per m² in Madrid: orange tones intra M-30 - green tones extra M-30, 2025
Source: Idealista
Graphics: Terreta Spain
The cheapest districts and neighborhoods outside the M-30
Outside the M-30, returns soar thanks to a price per square metre that is often 50% lower than in Madrid's inner city. Here, the investment strategy is based more on rental profitability than on immediate value enhancement, even if gentrification is beginning to take its toll.
As a reminder, you can view the zones, purchase and rental prices per square meter on our interactive map.
Villaverde
A working-class district in the south of Madrid, well served by metro line 3 and the Cercanías (suburban train) network, Villaverde is now attracting investors in search of high returns. A new asset: the "Madrid Nuevo Sur" (or Arroyo Butarque) development project recently launched by the city council.
- Purchase price: €2,637/m², +24% over the year
- Average rent: €16/m², +0.3
- Gross yield: 7.3
- Start-up cost for 80 m²: €211,000
Price trend, Villaverde since 2007
Source: Idealista
Terreta Spain tip: the area is still under-priced, making it very attractive for flat-sharing or young families.
Puente de Vallecas
Once a working-class bastion, Puente de Vallecas is undergoing a major transformation. Highlighted by the Netflix series Entrevías (named after a neighborhood in the district), Puente de Vallecas is a symbol of authentic Madrid: traditional markets, the family-friendly Enrique Tierno Galván park, supermarkets and more. Big plus: lines 1 and 6 of the metro provide quick access to the center.
- Average purchase price: €2,971/m², +22% over the year.
- Rental price: €18.7/m², +15.7%.
- Gross profitability: 7.5
- Ticket price: €237,700
Terreta Spain tip: a small apartment close to the metro offers yield and easy resale. The neighborhood is undergoing a process of consolidation: some streets are less sought-after, rental demand is more uncertain and the risk of vacancies greater than in Madrid's inner city. Location remains essential, which is why it's so important to be accompanied by local experts. Contact us for more information.
Price trend, Puente de Vallecas since 2007
Source: Idealista
Focus on the now famous Entrevías district, champion of cash flow.
- Purchase price: €2,444/m², +18.6% over the year
- Rental price: €16.2/m², change over the year N/A
- Gross yield: 8%.
- Ticket: €195,500 for 80 sq.m.
Usera
Madrid's lively, multicultural "Chinatown" combines popular life, Asian supermarkets, temples and spectacular Chinese New Year celebrations. Good profitability, long-term value and high rental pressure. Easy access from the center via metro line 6.
- Purchase price: €3,177/m², +22% over the year
- Rental price: €19/m², +8.9
- Gross yield: 7.2
- Ticket to market: €254,100
Price trend, Usera since 2007
Source: Idealista
Focus on the Orcasur district - 12 de octubre
Orcasur is a popular, family-friendly neighborhood with good transport links, where the average budget remains very affordable. Gentrification is increasing rental pressure. Valuation is attractive in the medium-to-long term.
- Purchase price: €2,391/m², -1%.
- Rental price: N/A
- Ticket to market: €191,300
💡 Terreta Spain tip: beware, faced with high turnover and the risk of non-payment, Terreta Spain experts advise you to favor sectors close to Madrid Río for greater security. Contact us for tailor-made support.
Carabanchel
Carabanchel is a popular neighborhood in southwest Madrid. It attracts visitors with its affordable prices and lively neighborhood life. Investing here means taking advantage of strong potential for appreciation, thanks to growing rental demand and urban renewal projects such as the pedestrianization of Calle La Laguna and the new connection between Carabanchel and Arganzuela via Madrid Rio. Carabanchel combines a number of strong points: excellent connectivity via metro line 5, large apartments (ideal for flatsharing) and strong renovation potential.
- Purchase price: €3,388/m², +21.7% over the year
- Rental price: €18/m², +11%.
- Gross yield: 6.4
- Entry price for 80 m²: €271,000
Terreta Spain tip: target areas close to line 6 and the Opañel district.
Price trend, Carabanchel since 2007
Source: Idealista
Focus on the Abrantes district, below the 3,000 euro per meter mark.
- Purchase price: €2,990/m², +17% over the year
- Rental price: N/A
- Entrance fee for 80 m²: €239,200
La Latina
The Latina district is located in the southwest of Madrid. It is a highly heterogeneous district, with both residential and industrial areas, green spaces, gyms and shopping centers. The district is famous for its natural promontories, such as Bermejo and Cerro de la Piedra, which offer beautiful panoramic views of the city and surrounding countryside. La Latina is well connected to the center of Madrid by metro line 5 and the Cercanías network.
- Purchase price: €3,683/m², +26% over the year.
- Rental price: €18.4/m², +10.5%.
- Gross yield: 6%.
- Ticket price: €294,640
Terreta Spain tip: La Latina combines several strong points: affordable square meters, good returns and green spaces that appeal to families. Turnover is perhaps less of a problem here than in areas like Usera.
Latina price trend since 2007
Source: Idealista
Focus on the Lucero district
- Purchase price: €3,413/m², +19.7% over the year
- Rental price: €18.8/m², +14%.
- Gross yield: 6.6
- Ticket price: €272,200
Extra M-30 (pink) and intra M-30 (orange) profitability rankings, Madrid
Sources: Idealista
Graphics, Terreta Spain
Conclusion
In 2025, the most affordable neighborhoods in the south and west of Madrid, outside the M-30, offer winning combinations of reasonable purchase prices, rapid growth and high returns.
At Terreta Spain, we help investors identify areas with high value potential and structure profitable projects over the long term. Our name is ?
FAQ - Where to buy in Madrid The cheapest neighborhoods on and off the M-30
What are the least expensive neighborhoods within the M-30?
The least expensive neighborhoods within M-30 are mainly Ventilla-Almenara (in Tetuán), Delicias (Arganzuela), Adelfas (Retiro), El Plantio (Moncloa-Aravaca) and Lavapiés (Centro). These are the few inner-city areas where the entry ticket for an 80 m² property remains (sometimes) under €400,000.
Which districts to choose for investing outside the M-30 on a small budget?
Outside the M-30, you'll find Villaverde, San Andrés, Usera, Puente de Vallecas, Carabanchel and Latina, where prices per m² start at around €2,400/m². Gross profitability is 6-8%.
What profitability can you expect in Madrid today?
Gross profitability is 4% to 5% inside the M-30 and can exceed 7% outside the M-30, particularly in the southern districts of Puente de Vallecas, Villaverde, Usera and Carabanchel.
What does it mean to buy intra or extra M-30?
Buying "intra M-30" means acquiring a property within Madrid's ring road: this is the most central and valued area. "Extra M-30" means targeting neighborhoods beyond this ring: more affordable prices, but also high potential for added value.
What are the advantages of investing in Madrid's southern districts?
The south of Madrid, including Villaverde, Puente de Vallecas, Usera and Carabanchel, offers attractive prices, strong rental demand and urban development projects.
Is it better to buy in an extra or intra M-30 district?
It all depends on your objective: intra M-30 = investment security and value enhancement, extra M-30 = high yield and more options on a reasonable budget.
Will the Madrid market remain dynamic in 2025?
Yes, the steady rise in prices (+19% in one year), sustained rental demand and scarcity of maintained supply make Madrid a solid investment market.
Need personalized advice on a specific neighborhood?
Don't hesitate to contact Terreta Spain for a tailor-made study and assistance with your project in Madrid.
