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Madrid is located a little north east from the geographical center of the Iberian Peninsula, in the middle of the Spanish central Castillian plateau (Meseta central), at an average altitude of 650m. Nearly all of the most famous tourist areas are located in the historical center of Madrid, middle south of the city: Puerta del Sol in the middle, Plaza Mayor a bit to the south, Palacio Real to the west, and Plaza de Colón to the north-east. Some of those hot spots spread up past the Gran Via, which is one of the main streets in Madrid (the largest one being Alcalá Street, followed by the Paseo de la Castellana).
Source: Wikitravel

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