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It is a good idea to start you search for accommodation before moving to the city, but I certainly wouldn't advise you to sign any leases or part with any cash till you have seen the place and checked the location is suitable.
Online listings are a good starting point and will give you an idea of average rents you can expect. If you have any contacts in the country already you might be able to ask them advice on the location of properties you like, etc. Also make contact with a few estate agents so they can help you find properties that meet your requirements.
For some useful tips of Madrid's property market read the Expat Arrivals page on Accommodation in Madrid.
Good luck
Shantalie