The Centro neighborhood of Madrid is the oldest, most historic part of the city. Keep in mind: it can be confusing when talking about Madrid neighborhoods, because there are names that are locally used for different sections of Barrio Centro which are different from the official district names. Take La Latina, for example. Everyone refers to it as La Latina, but its official name is Palacio. Likewise, the official district of Embajadores is referred to by locals as Lavapiés. Justicia is colloquially known as Chueca and Las Cortes is referred to as Huerta.
La Latina is the oldest part of Madrid. Although most people think the name La Latina means it is Madrid’s equivalent of Paris’s Latin Quarter, this isn’t true. It’s actually a very traditional Spanish neighborhood. The classic street for a tapas crawl (tapeando), Calle Cava Baja, is located in La Latina.
The neighborhood was named after the writer and humanist Beatriz Galindo, one of the most relevant personalities of the fifteenth century. She was often referred to as “La Latina” because she was highly skilled in Latin. She was the tutor of Queen Isabella the Catholic and her children. Along with her husband, she established a hospital on Calle Toledo, next to Plaza de la Cebada, which came to be known as “Hospital de La Latina.”
There are two main plazas in La Latina: Plaza de la Paja and Plaza de Cebada. Paja means straw in Spanish, and Cebada means barley- the straw and barley markets were originally in these locations. It is the most traditional of all Madrid neighborhoods. Although the main streets are often filled with tourists, you can walk through the side streets and find quiet, beautiful squares that are evocative of medieval times. Everywhere you look, you will see massive, Neoclassical domed churches like the Basilica of San Francisco el Grande, which is filled with frescos by Goya, historic paintings and statues.
If you venture to the south of La Latina you will find Lavapiés, which is the most diverse neighborhood in the city. If you enjoy eating food from different cultures, a trip to Lavapiés is a must as you can find Moroccan, Indian, Senegalese restaurants and more. Many buildings in this neighborhood are covered with street art, contributing to the neighborhood’s gritty vibe. Time Out magazine voted Lavapiés the “Coolest neighborhood in the world” in 2019.
The true center of Madrid is located in Puerta de Sol, which is very popular with tourists. The real estate to the east of Sol, in Cortés (also called Las Huertas), is much more atmospheric. This is the old literary district of Madrid. Its narrow streets, lit by electrified old gas lights and paved with literary quotes, are a haven of hipster boutiques, independent fashion ateliers and vibrant bars and restaurants. This is the home of the original Salmon Guru; a very vibrant cocktail bar that now has outposts in Dubai and Milan.
The neighborhoods in the north of the Center, Malasaña and Chueca, are where most of the nightlife in the city is centered. Malasaña is all bars and restaurants and can be quite loud at night. Upscale Chueca is the center of Madrid’s gay community. There are many organic restaurants and trendy clothing stores in this area. During Pride Month, Chueca comes even more alive than it normally is. Pride in Madrid is not just for the LGBTQ+ community; it is a celebration enjoyed by all Madrileñ@s.
Although most of the people that buy in the Center are single or don’t have families, there are a few good bilingual schools and after school activities in the Centro neighborhood of Madrid. It’s also an excellent place to buy properties for student housing as most universities are easily accessible by Metro and college students love the nightlife.
Pricing Overview
As seen in other premium neighborhoods in Madrid, such as Chamberí and Salamanca, real estate prices,in the Center increased in 2025, but not at the spectacular rates seen in 2024. On average, real estate prices in the Center rose 11% from December 2024 to December 2025. For reference, they increased 16%+ the year before.
There is much variation in prices across the neighborhoods in the Center. Prices in magical Cortes (Huertas) averaged 8,545€ per square meter in December 2025. The price per square meter in party friendly Malasaña averaged 7,627€ in December 2025, while prices in traditional La Latina (Palacio) averaged 7,222€ per square meter.
If you want to live in the Center but can’t afford these prices, or are looking for an investment property with a higher rental yield, your best bet is to look in Embajadores (Lavapiés), where the average price of real estate was 6,042€ per square meter in December 2025. This neighborhood had the strongest price increase in 2025: 15.8% as buyers looked to more “fringe” neighborhoods in search of deals.
Current Market Prices
Restaurants
Pricing Overview
€ 7,366 per square meter
11.3%