Where To Stay In Madrid First Time Budget 2025 - Affordable Areas
Wondering where to stay in Madrid with family?
The capital of Spain is an ideal travel destination for families seeking an adventure full of culture, history, and kid-friendly entertainment.
Known for its warm hospitality and incredibly rich heritage, Madrid offers many attractions that cater to all age groups.
The city is known for its world-class museums.
The Prado Museum, home to countless masterpieces by renowned artists like Goya, Velázquez, and El Greco, is a cultural treasure trove.
The Reina Sofia Museum, housing Picasso’s iconic “Guernica”, is another must-visit.
But of course, visiting museums isn’t always as fun for kids. Luckily, Madrid’s historic city center is another great option to visit with your family.
Grand plazas like Plaza Mayor and Puerta del Sol are ideal for family strolls.
The Royal Palace is another must-visit as this architectural masterpiece offers a glimpse into Spain’s regal history.
There are several parks to discover that are ideal for a picnic or bike ride, with Retiro Park as the absolute best.
Madrid is also home to an exciting food scene for young and old. While the parents try delicious tapas, the younger ones can enjoy churros.
If you plan your travel right, you might have a chance to combine your visit with attending one of the festivals the city has to offer, including the San Isidro Festival and the Three Kings Parade.
Whether exploring museums, indulging in local cuisine, or simply taking in the city’s historic charm, Madrid promises an unforgettable experience for all.
But with so many things to offer, it’s a bit challenging to pick the right area for you.
We’ve come up with a list of recommended areas to make things easier.
Each of the recommended areas comes with its own advantages and disadvantages, which are summarized after each paragraph.
With that being said, let’s jump straight to our recommendations.
In brief: The best areas to stay in Madrid with family are Retiro, Centro, Lavapiés, Atocha, and Chamberí.
These areas are either relatively quiet or are located centrally and have great access to the main attractions of Madrid.
The nightlife areas are not listed in this article as these areas can cause quite a noise in the late evening.
As Madrid has an excellent metro station, you can easily enjoy the spacious area of Retiro and take the metro to each touristic part of the city.
Families who prefer to stay in the heart of the city and are willing to pay a premium for that should stay in Centro.
Those traveling on a budget should stay in Lavapiés or Atocha.
Families who prefer a quieter experience should consider staying in Chamberí.
You will be located a bit further away from the tourist attractions but you have great access to the metro.
You can also easily navigate to each recommended area by tapping the link. Or simply go straight to the overview of the best areas to stay in Madrid with family at the bottom of this article.
The best areas to stay in Madrid with family are:
1. Retiro
Retiro is a huge area on the Eastside of the (tourist) center of Madrid.
It’s home to El Retiro Park which is connected to Real Jardín Botánico and of course Museo Nacional del Prado and Puerta de Alcalá.
Most tourists tend to stay at Centro, where you can find many attractions, however, when you’re looking for the best area to stay in Madrid with family, you want to be in an area where it’s spacious.
Retiro is exactly that type of area, while still remaining in a central location.
The only downside when it comes to mobility is that the metro line that takes you to Centro, is located north of Retiro. Museo Nacional del Prado and Puerta de Alcalá are accessible by foot though.
You are, however, located near Estación Madrid – Puerta de Atocha, which is a station with several metro lines that take you to each corner of the city.
Retiro is a calm neighborhood, with access to parks and plenty of space.
Because of that, we believe it’s among the best areas to stay in Madrid with family.
2. Centro
Most tourists and first-time visitors choose Centro to be the area to stay in, simply because it’s the tourist epicenter of the city.
Main attractions such as Plaza Mayor, Catedral de Santa María la Real de la Almudena, and Palacio Real de Madrid are within reach in this old city center.
Contrary to the previously recommended Retiro, the buildings of Centro still have that typical architecture you can find in the older parts of Madrid and a stroll through these streets is simply magnificent.
As you might expect from such a popular area, you have great access to public transport.
But, as it’s such a bustling area, it’s not a quiet area. Also, hotel prices are much higher and Centro is definitely not known for its spaciousness.
Then again, you are located perfectly!
3. Lavapiés
When you’re looking for a budget-friendly area in Madrid for your family, you should consider staying at Lavapiés.
Location-wise, you would not expect this to be a budget-friendly area as you’re located right under Centro and have good access to several metro lines.
This area is not the most beautiful area of Madrid and it’s mainly a residential area, but you will witness the daily lives of Madrid’s citizens and moving around the city is easy.
When you’re staying in the North of Lavapiés, you’re located near Plaza Mayor, which is already part of Centro.
When you’re staying in the east, you’re located near El Retiro Park, the famous park in Madrid which is ideal for a morning walk with the family.
4. Atocha
This area, which is mainly a residential area, comes with the benefit that it’s in fact a transportation hub.
As you’re located near Estación Madrid – Puerta de Atocha, the main train station of Madrid, you have the benefit of moving around the city like no other area.
Usually, in many other cities, hotels around the train station are often cheaper, and in Madrid, it’s no exception.
You have the possibility to walk to El Retiro Park and a few other city highlights, but eventually, taking advantage of the connections to public transport is much easier and smarter to do.
Just be a bit careful in the evening as the area around the central station can be sketchy, which is common in European cities.
You should choose Atocha when you want to take advantage of public transportation to the fullest and as Madrid’s highlights are a bit spread over the city, it’s quite a smart thing to do.
Also, the fact that the hotels are more affordable means you can get a proper family room that won’t cost you an arm and a leg.
5. Chamberí
The last area to stay in Madrid for families that we recommend is Chamberí. This area is located between the tourist epicentre and Estadio Santiago Bernabéu, the football stadium of Real Madrid and can be divided into six different neighbourhoods.
Chamberí is often dubbed as a quiet area, which makes it ideal for families, while staying located relatively central.
When you stay close to the Quevedo metro station, you have access to the metro line that takes you to most of the city highlights.
Besides the several parks, there are plenty of shopping facilities in this part of Madrid and you won’t find mass tourism here. That’s what makes Chamberí unique.
Overview where to stay in Madrid with family
1. Retiro: Retiro is a large area near the tourist epicenter of Madrid that also offers spaciousness. You have access to several parks and the area itself is relatively calm. So that makes it an ideal area to stay in Madrid for families. One small detail: you do have access to the metro lines, but on some occasions, the metro stations are located a bit away, so try to find a hotel with a metro station within walking distance.
2. Centro: This is the all-time favorite area among tourists. It comes with a lot of perks, such as great access to public transport, attractions, and a beautiful environment. Keep in mind that it’s not a quiet area and hotel prices are higher than elsewhere in the city. But there are many great reasons why it’s such a great area to stay at.
3. Lavapiés: When traveling on a budget, Lavapies is probably the best option you have. You have great access to the metro lines, you’re located centrally, the local food scene is amazing and it’s more authentic than the previous two areas. This residential neighborhood is not as beautiful as Centro, but definitely worth considering!
4. Atocha: Atocha is another budget-friendly area and you have direct access to the train station. This is an ideal area for families who want to use public transport, in particular the metro and the trains, to the fullest.
5. Chamberí: This is a quieter area located between the tourist epicenter and the Bernabéu stadium with good access to the metro lines. Keep in mind that you have fewer tourist facilities compared to the popular tourist areas as you won’t find mass tourism here. But it’s definitely a great area for families.