The Trafalgar neighborhood is located in the center of Madrid; it is a sub-neighborhood of traditional, upscale Chamberí. The heart of the neighborhood is the oval shaped Plaza Olavide. Once the site of a large covered market, this is the heart of Trafalgar. This fountain filled plaza is lined with terrazas where locals gather to drink a vermouth or beer in the afternoon, then enjoy some tapas as the sun begins to slowly set in the sky.
Once a very typical Madrid neighborhood, Trafalgar is experiencing a renaissance. Although the neighborhood has been increasingly popular in recent years due to its excellent location and lovely apartments, the opening of The Brewster School Madrid in 2023 sparked strong interest in the neighborhood among expat families, particularly Americans.
The Brewster Academy started in 1820 in the state of New Hampshire. 203 years later it made the decision to expand internationally; it chose Madrid as the site of its first international campus. It is the only school in Madrid that offers K-12 education. Brewster boasts that its student body is composed of “young people of exceptional character.” The school has proven to be so popular that in September 2025 it is opening a second Madrid campus in the suburb of La Moraleja. Its Trafalgar campus, located at Calle Eloy Gonzalo 3-5, already welcomes students from more than 30 different nationalities. Where Plaza Olavide used to be lined with older Madrileños sitting on benches, it is now filled with English speaking children playing after school.
Aside from this excellent educational opportunity for expat children, many new restaurants have opened in Trafalgar. Arguably the best is the Michelin Guide recognized Sisapo, located just south of Plaza Olavide at Trafalgar, 14. Its unusual name refers to a Roman archaeological site in La Bienvenida (Ciudad Real province). The head chef Alejandro Aguirre, “champions contemporary cuisine that is highly personal and full of strong flavors, ably supported by Asian and South American ingredients that he skillfully combines with native Spanish products.” Another excellent choice is Fismuler. This restaurant’s menu changes daily to include the best and freshest seasonal ingredients. If you prefer something more casual, Trafalgar is filled with traditional tapas bars and tavernas.
Trafalgar is a very residential neighborhood, so it is an excellent choice for families that desire the peace and high quality education found in the suburbs, but don’t want to feel isolated. Although the neighborhood streets are quite tranquil, Trafalgar is in the center of Madrid. If you want to go shopping, Calle Fuencarral runs down the western border of the neighborhood. On this street, a mere five minute walk from Plaza Olavide, you can find movie theaters, Zara, a large Carrefour, ice cream shops, casual eateries (Burnout for hamburgers and Sumo for all you can eat sushi are two stand outs), pharmacies and even a Basic Fit gym.
Directly to the south of Trafalgar lies the neighborhood of Malasaña, which has the best bars and nightlife in the city. You can go out for the evening in this dynamic neighborhood, then walk back home to Trafalgar where the nights are quiet and you can get a good night’s sleep.
For those who enjoy culture, Teatros Canal is a ten minute walk away. This is the premier venue in Madrid for dance, opera and classical music. Teatros Canal is situated at the edge of Vallehermoso, a very traditional neighborhood that is also seeing a bit of a renewal as young families start to move in, drawn by real estate prices that are lower than those in Trafalgar. The center of this neighborhood is the Mercado Vallehermoso. Until recently this was a sleepy old market selling fruits and vegetables to older Madrileños or their maids. But, like many of the markets in Madrid, it has become a hub of dynamic new restaurants (Kitchen 154 is particularly popular), craft beer stalls and upscale wine merchants. The market still has fruit and produce vendors, but they have gone upmarket. For example, Hermanos Gómez is the Adrià brothers’ favorite poultry purveyor; here you can splurge on all things foie gras (mi-cuits, galantines, pâtés and more).
If you are looking for something more relaxing. you can visit the baths and hydrotherapy at Mas que Agua, They have baths at different temperatures and pressures. You can pair your thalassotherapy experience with their offerings of high quality products such as: natural oils, Black Sea mud, algae and sea salts. If your child goes to the Brewster Academy (or any other school in the neighborhood), a perfect way to experience your day in between school runs would be to have a tea and pastry at the Lebanese tea room Pastelería SHAM on Calle Bravo Murillo, followed by a little shopping on Calle Fuencarral (you can pick up anything you need for the house at Carrefour), a couple hours of hydrotherapy at Mas que Agua, then lunch with friends before picking up your kids and taking them to Plaza Olavide to play (while you enjoy a caña or little vermouth). All without leaving the neighborhood.
Pricing Overview
Like all premium Madrid neighborhoods, property prices in Trafalgar have trended up strongly in recent years. As you can see in the table below, July 2025 prices in the neighborhood increased 25.8% yoy. This is the strongest price increase of any neighborhood in Chamberí and clearly outperformed pricing in Almagro, which historically has led Chamberí real estate price increases. However, it is still much cheaper than Almargo on a square meter basis: 8,804 m2 vs. 10,244 m2. Although the strong price increase has shrank rental yields, Trafalgar is still an excellent place to purchase an apartment in which to live while your property experiences strong price appreciation. Due to the strong appeal of The Brewster Academy and the renaissance this neighborhood is undergoing, prices in Trafalgar could easily equal those in adjacent Almargo in the not so distant future.
If you are looking for cheaper real estate and don’t mind living a few blocks from the neighborhood, nearby Vallehermoso has some more reasonably priced apartments. Plus, as it’s traditionally an older neighborhood, you can likely find an apartment that you can renovate.
Bottom line: although prices in Trafalgar have increased in recent years, it is an excellent neighborhood for those looking for capital appreciation.
NOTE: All pricing data is from Idealista.com in July, 2025. However, we would like to point out that although these pricing numbers reflect averages, current market prices are consistently higher than reflected in these averages. Current pricing is 1000€/m2, or more, in some neighborhoods.
Current Market Prices
Restaurants
Pricing Overview
€ 8,804
25.8%