Carlo Ancelotti’s team are now without a win in three games in all competitions, but remain leaders with 17 points, ahead of city rivals Atletico Madrid, who beat Barcelona 2-0 on Saturday.
A goal in both halves by Raul De Tomas and Aleix Vidal was enough for Espanyol to secure the three points against Real Madrid. The Catalans advanced to 12th place with nine points.
“We weren’t feeling well. We conceded early and that makes the game more difficult for you,” said Real defender Nacho.
“They came in a lot behind us and we have to work on our defenses and that will come with the games.
“We are missing a few players but we still have a good squad and should do better than in our last three games. We have to improve and react at the back.”
Former Real Madrid youth player De Tomas scored the goal in the 17th minute after Ardi Embarba stepped in to the left of the guests behind David Alaba and shot across the goal.
Eder Militao headed his head wide just before half-time as Real looked for a way back into the game, but they were two behind when Vidal danced his way through the park on the hour.
Sergi Darder missed a glorious chance for a three-pointer before Karim Benzema cut the gap in half with a concentrated shot 19 minutes before the end. Real couldn’t find an equalizer, however, as Eden Hazard’s late offside performance was ruled out.
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