The Blancos supremo believes the Welshman cost the Liga giants relatively little as he was arguably the best player who was available this summer
The Primera Division giants spent a world record €100 million to lure the Wales international away from the Premier League, yet their chief believes they still got their man on the cheap.
"Bale came to Madrid relatively cheap," the Blancos president told Cadena SER.
"Signing the best players out there is Madrid's philosophy and Bale was the best available player this summer. We had been following him for two years.
"Tottenham initially did not want to sell, but when we heard Manchester United made an offer, we tabled a bid ourselves. His childhood dream to play for Madrid eventually proved to be decisive."
The 24-year-old scored on his official Madrid debut against Villarreal, but missed this weekend's win over Getafe due to a thigh problem.
Bale is also expected to miss Wednesday's match versus Elche, but should be match fit in time for the upcoming derby against Atletico Madrid.