What can I buy in Madrid with €500,000, €750,000 or €1M
In this article
- Your budget includes purchase costs
- Square metres by budget and district
- With €500,000: usually a 1-bedroom flat
- With €750,000: a 2-bedroom, 2-bathroom flat
- With €1M: a 3-bedroom flat, often a renovation project
- The neighbourhood changes the price more than the district
- If you buy to rent: yield and appreciation
- Frequently asked questions
- A note on sources
What can you buy in Madrid with €500,000, €750,000 or €1M? It depends more on the area than on the budget: with the same €500,000, the Salamanca district gives about 46 sqm and Tetuán about 81. Using idealista data from September 2026, this guide shows how many square metres each budget buys by district, what price you can pay once costs are deducted and what type of home fits each tier.
Your budget includes purchase costs
Purchase costs add between 6% and 7% to the price, and sometimes renovation (costs and taxes when buying a home in Madrid). That is why the maximum price you can pay for the home is lower than your total budget:
| Total budget | Maximum purchase price (after 6–7% costs) |
|---|---|
| €500,000 | €467,000 – €472,000 |
| €750,000 | €701,000 – €708,000 |
| €1,000,000 | €935,000 – €943,000 |
Square metres by budget and district
Approximate square metres at each district's average asking price (idealista, September 2026), on the total budget and before costs; if you deduct costs, take off that proportion. The actual flat varies by neighbourhood, condition and floor.
| District | Average price (€/sqm) | €500,000 | €750,000 | €1,000,000 |
|---|---|---|---|---|
| Salamanca district | 10,865 | 46 sqm | 69 sqm | 92 sqm |
| Chamberí | 9,159 | 55 sqm | 82 sqm | 109 sqm |
| Chamartín | 8,127 | 62 sqm | 92 sqm | 123 sqm |
| Arganzuela | 6,384 | 78 sqm | 117 sqm | 157 sqm |
| Tetuán | 6,161 | 81 sqm | 122 sqm | 162 sqm |
| Centro | 7,771 | 64 sqm | 97 sqm | 129 sqm |
With €500,000: usually a 1-bedroom flat
On the prime axis (Salamanca district and Chamberí) it buys about 46–55 sqm at average prices, and in Arganzuela or Tetuán 78–81 sqm. If the goal is to rent, our criterion is a 1-bedroom of at least 40 sqm for under €350,000, with renovation estimated at €1,100/sqm and a long-term rent of €1,400/month or more, in areas such as Gaztambide (€8,265/sqm, +8.5% annually) or Arapiles (€8,225/sqm).
With €750,000: a 2-bedroom, 2-bathroom flat
It buys about 69 sqm in the Salamanca district, 82 in Chamberí and 97 in Centro; in Malasaña-Universidad (€7,924/sqm, +3.3% annually) it equals about 95 sqm. If the goal is to rent, in our view it is the soundest balance of the three: a more contained purchase than a 3-bedroom, strong demand and an indicative long-term rent of around €2,000/month.
With €1M: a 3-bedroom flat, often a renovation project
It buys about 92 sqm in the Salamanca district, 109 in Chamberí and 129 in Centro, and 157–162 sqm in Arganzuela and Tetuán. In Malasaña and Chamberí (Malasaña-Universidad at €7,924/sqm, +3.3%; Trafalgar at €9,361/sqm, +6.7%) we work with product that usually needs renovation, estimated at €1,100/sqm; afterwards, the indicative long-term rent is around €2,400/month.
The neighbourhood changes the price more than the district
Within a single district the gap is huge: in Salamanca, Recoletos trades at €14,724/sqm and Guindalera at €7,336; in Chamberí, Almagro at €11,141 and Vallehermoso at €7,692; in Centro, Chueca-Justicia at €9,827 and Lavapiés-Embajadores at €6,292. You will find the table of 36 neighbourhoods with their annual change in Madrid neighbourhoods to invest in 2026: real yields.
If you buy to rent: yield and appreciation
The average gross yield by district runs from 3.3% (Salamanca) to 4.6% (Tetuán) according to idealista; net yield is lower after taxes, costs and vacancy. In seasonal lets, rents can be around 25% higher, with more vacancy and regulation under review. For appreciation, here are two illustrative 5-year scenarios:
| Budget | Today | After 5 years (3% a year) | After 5 years (5% a year) |
|---|---|---|---|
| €500,000 | €500,000 | €580,000 | €638,000 |
| €750,000 | €750,000 | €869,000 | €957,000 |
| €1,000,000 | €1,000,000 | €1,159,000 | €1,276,000 |
These are assumptions, not forecasts: over the past year the districts and neighbourhoods analysed moved between −1.2% and +13.6% (idealista, September 2026).
Frequently asked questions
Usually a 1-bedroom flat on the prime axis: about 46 sqm in the Salamanca district, 55 in Chamberí or 81 in Tetuán, at average asking prices and before costs.
A 2-bedroom, 2-bathroom flat in areas such as Malasaña-Universidad or Chamberí; in Malasaña-Universidad, about 95 sqm before costs.
A 3-bedroom flat, often a renovation project: about 92 sqm in the Salamanca district, 109 in Chamberí or 129 in Centro.
Between 6% and 7% of the price, plus renovation if any; with a total budget of €500,000, the maximum purchase price is about €467,000–€472,000.
A note on sources
Prices and changes come from idealista (September 2026) and are asking prices, not deed prices. Rents and rental criteria are based on deals we analyse and are not an offer or a guarantee of returns.
At Lula Select we represent buyers exclusively, never sellers. If you are considering buying in Madrid with one of these budgets, we help you compare areas using real closing data and access off-market product that rarely reaches the portals. If you are looking to invest, we can help with that too.