Last updated on June 21st, 2023
best places to Airbnb in Madrid
Key Takeaways
• Madrid offers a stable economy, great living conditions, and good rental returns. Thanks to this, various hosts have generated a nice rental income.
• Get to know the main advantages that real estate investors can look forward to when investing in rental properties around Madrid.
• We feature the top 10 recommended areas for real estate investments around Madrid along with their respective Airbnb data.
Introduction
Nestled in the center of the Iberian Peninsula, we can find the influential cultural center of Madrid. The capital city of Spain is a lively and multicultural city that possesses an enormous offer of cultural attractions, exquisite gastronomy, and vibrant nightlife.
Madrid is an influential city and the major business center of Spain with a healthy economy, a solid tourist market, and high standards of living. Additionally, Madrid also has a strong housing market that offers one of the best rental yields in Spain.
According to Airbnb, Madrid didn’t stop at catching travelers’ attention in 2022, but it also turned into a top trending global destination that US travelers are excited to visit this spring 2023!
In this article, we’ll talk about the best places to Airbnb in Madrid, Spain and what expectations to have about real estate investments in the city. Continue reading to learn more!
Reasons to invest in Madrid real estate
Madrid is an attractive market to invest in from the perspective of property investors, considering the variety of promising benefits it offers. Check out some of the major reasons why buying an investment property in Madrid is an excellent idea:
Strong economy
Madrid is the business hub of Spain with a GDP that saw a positive growth of 7.1% by the end of 2022. The city is an important economic center as many major corporations, government offices, startups, and global organizations are settled here.
As Spain’s economic hub and most populous city, it’s guaranteed that the labor market is stable and dynamic with plenty of job opportunities. For this reason, many people are looking to relocate to the city, which puts the real estate market in a positive light for investors as there is a high demand for rental properties.
Attractive real estate market
In terms of real estate, Madrid stands out as one of the most attractive European markets to invest in this 2023! The city has a convenient location and a variety of housing options with attractive prices and good rental yields.
According to the report made by the PwC and Urban Land Institute, Madrid is one of the top trending destinations for real estate investments in Europe along with London, Paris, and Berlin.
Great quality of life
Aside from the strong financial situation of Madrid, the great living condition is another reason for the population growth. The city holds 34th place in the Quality of Life Index by City 2023 in the Europe region.
Madrid is a diverse and multicultural city where you can have easy access to a trusted educational system, a stable job market, and a reliable public transportation system. Moreover, there are plenty of great-quality facilities right at your disposal.
Bonus: Madrid’s prime location allows you to easily travel across Europe!
Enjoy the abundance of leisure options
There may not be plenty of natural attractions like beaches and natural reserves around Madrid, but Madrid makes up with the number of cultural options available! The city is home to renowned museums, art galleries, chic shopping shops, and a great dining scene.
Madrid will certainly surprise you with plenty of historical spots, picturesque neighborhoods, and incomparable nightlife. Additionally, the city hosts a variety of art exhibitions, fairs, and events throughout the year, so you’ll always have something interesting to do while staying here no matter which month you decide to visit the city.
Is Airbnb Profitable in Madrid?
Don’t fret! Airbtics confirms that investing in real estate in Madrid is highly profitable. Having said that, we must highlight that the level of profitability also depends on other factors such as the property type and location.
In addition, we also recommend checking out the Airbnb rules in Madrid so that you can avoid breaking the laws and run your listing smoothly!
According to Airbtics’ data, an Airbnb host can expect annual revenue of €46,942 with a steady occupancy rate of 91% for operating a 2-bedroom property in Madrid.
Top 10 Rental Markets for Real Estate Investment in Madrid
Madrid has 21 administrative districts, which are further subdivided into 131 diverse neighborhoods. Consequently, you can expect that the profitability of each area is different. So you may wonder, “What’s the best location for real estate investments in Madrid?”.
Check out the best neighborhoods and districts in Madrid, Spain where you should consider buying a property to rent out:
1. Salamanca
- Total Number of Airbnb Listings: 903
- Best bedroom size: 3 bedrooms
- Median property price (3 bedrooms): €899,000
- Airbnb Annual revenue: €90,787
- Gross rental yield: 10.21%
2. Justicia
- Total Number of Airbnb Listings: 811
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €590,000
- Airbnb Annual revenue: €57,034
- Gross rental yield: 9.67%
3. Malasaña
- Total Number of Airbnb Listings: 965
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €425,000
- Airbnb Annual revenue: €56,228
- Gross rental yield: 13.23%
4. Argüelles
- Total Number of Airbnb Listings: 177
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €460,000
- Airbnb Annual revenue: €53,284
- Gross rental yield: 11.58%
5. Chamberí
- Total Number of Airbnb Listings: 709
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €380,000
- Airbnb Annual revenue: €49,198
- Gross rental yield: 12.95%
6. La Latina
- Total Number of Airbnb Listings: 417
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €357,000
- Airbnb Annual revenue: €48,636
- Gross rental yield: 13.62%
7. Retiro
- Total Number of Airbnb Listings: 488
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €379,000
- Airbnb Annual revenue: €47,933
- Gross rental yield: 12.65%
8. Lavapiés
- Total Number of Airbnb Listings: 1,077
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €310,000
- Airbnb Annual revenue: €42,572
- Gross rental yield: 13.73%
9. Tetuán
- Total Number of Airbnb Listings: 588
- Best bedroom size: 2 bedrooms
- Median property price (2 bedrooms): €385,000
- Airbnb Annual revenue: €37,436
- Gross rental yield: 9.72%
10. Atocha
- Total Number of Airbnb Listings: 217
- Best bedroom size: 1 bedroom
- Median property price (1 bedroom): €240,000
- Airbnb Annual revenue: €32,744
- Gross rental yield: 13.64%
Summary
Madrid offers promising investment opportunities to real estate investors who are looking to achieve financial freedom. While Madrid provides one of the best rental yields and high annual revenue among the cities in Spain, it’s always important to consider the options carefully without rushing things out.
Discovering the best areas to Airbnb in Madrid is an excellent way to start your investment journey! Yet, we encourage you to aim further and think about long-term profitability. Hence, you should take a look at Airbtics’ short-term rental calculator so that you can maximize your gains after making data-based decisions.
