Living in downtown Madrid is amazing. Everything is in walking distance: good restaurants/tapas bars, museums, stores, and even more important, my close friends. Calling up a friend to go out for a quick bite to eat or chat over some wine is no longer a huge investment of time.
I'm living right in the heart of downtown Madrid. If I leave the door to my house, to the right I have Plaza Mayor, just one block away. To my left, you can reach the posh Plaza Santa Ana where everyone is dining in the outside terraces, perhaps about 3 blocks away. I enjoy my brief walk to the metro, which is my transportation mode to work. To give you an idea of what I see every morning on my way to work, here is a picture of Metro Sol with the famous Tio Pepe billboard behind it. Of course, this picture is taken at night, but it gives you an idea.