The Ultimate Guide to the Best Neighborhoods in Lisbon

What are the best neighborhoods in Lisbon?

Whether you’re moving to Lisbon long term and looking for the ideal neighborhood to settle, or you’re just visiting the city and wondering: What type of accommodation should I book and where? Our list of the best neighborhoods to stay in Lisbon has you covered. 

Depending on whether you’re a tourist, an expat, or a digital nomad, you’ll probably have a different perception of the best Lisbon neighborhoods. If you’re planning on putting down roots, Lisbon’s neighborhoods also offer high-quality international schools and large homes for big families.

The best neighborhoods in Lisbon to live in are explored below, and each part of town will have its own allure. These are certainly the most-loved districts when it comes to where to stay in Lisbon, for reasons we’ll outline below in this Lisbon neighborhood guide.

Alfama neighborhood in Lisbon

If you are looking for old town charm, then look no further. Walking the cobblestone streets of Alfama is like stepping back in time into a medieval Portuguese labyrinth. The near-vertical hills are a struggle to climb, particularly in the heat of summer, but once you reach the top you are rewarded with panoramic views and flower-clad iron railings.

Alfama is characterized by narrow streets, Fado houses, and colorful miniature doorways as well as numerous wall tile formations.

It shouldn’t come as a surprise that Alfama is one of the areas of the city that is hugely popular with tourists who visit Lisbon. Therefore, the majority of those who inhabit Alfama are older Portuguese people and tourists in short-term holiday rentals.

You’ll find the stunning Castelo de São Jorge (São Jorge Castle) here, where you can enjoy splendid views of the city. The Castelo de São Jorge is also free for Lisbon residents. You will also find Casa dos Bicos, a historic house and museum, and a key architectural attraction to visit.

The pros of Alfama could also be related to its cons, as being so beautiful and old, it has, in some ways, become a museum of sorts. While the tourists do dominate Alfama in summer, there certainly is life and energy in the district, Fado music, and some great Portuguese wine bars.

The average property price for Alfama homes (in the Santa Maria Maior neighborhood) is €7,321 per square meter.

Graça neighborhood in Lisbon

Graça is Alfama’s cool younger sister, perched next to Alfama – and is truly one of Lisbon’s most treasured locations. Despite being in the old town of Lisbon, there is a wave of young people changing the landscape of this suburb. Graça is equally as beautiful as Alfama, and also has the same charming narrow streets, but has a more lived-in vibe. There is a buzz to this hilltop area of Lisbon that is perfectly mixed with charming old squares and miradouros (viewpoints).

Graça is home to a mix of older locals, young expats, and young Portuguese people. This is a top choice of location for digital nomads and entrepreneurs, and you even have an excellent co-working space here called Heden for your working needs.

Graça Lisbon real estate (in the São Vicente neighborhood) is slightly cheaper than Alfama at an average asking price of €6,401 per square meter.

Ajuda neighborhood in Lisbon

Ajuda is slightly off the beaten track, to the west of the city. However, Ajuda is evolving to become one of the coolest neighborhoods in Lisbon.

Today, the area is still up and coming, and if you are looking to snap up cheaper real estate, Ajuda is a good bet.

There is an industrial feel to this part of town, with old warehouses slowly being converted into hip bars and breweries, but the area is still missing some polish that one might be looking for if moving to Lisbon.

In Ajuda, the average price of property is €5,366 per square meter.

Avenidas Novas neighborhood in Lisbon

Avenidas Novas might be considered one of the best neighborhoods in Lisbon to live in as its leafy spacious streets are lined with large, beautiful properties. Avenidas Novas begins at the grand Avenida da Liberdade, the most sought-after address in Lisbon.

Avenida da Liberdade has many luxury and designer stores lining the street and is home to Restauradores Square. Located in the city center of Lisbon, the square commemorates the Iberian Union.

While Avenida da Liberdade is for those who are looking to capture a touch of luxury in the city, Avenidas Novas also has the fantastic Gulbenkian Foundation and its peaceful gardens, a highlight of the city.

Avenidas Novas is Lisbon’s business center, with working professionals mainly living in this part of town. Coffee is a must for hard-working professionals, and at lunch, you’ll see all the cafés and their terraces occupied by those who work in Lisbon.

There are also a couple of high-end rooftop bars with views of the whole city. As a place to live, Avenidas Novas has something for everyone and some of the most sought-after real estate in Lisbon. The average asking price for property is €8,377 per square meter in Avenidas Novas.

Campo de Ourique neighborhood in Lisbon

Campo de Ourique is up high on a quiet corner of town and is a very nice family-oriented neighborhood in Lisbon. Lovely artisanal shops and an indoor food market are some of the things that make this one of the nicest neighborhoods in Lisbon to live in. The Portuguese food scene in Lisbon has become one of the best in Europe, so make the most of discovering Portugal’s cuisine here.

Campo de Ourique Lisbon real estate is also a popular expat neighborhood, largely because it provides quick access to the main parts of the city, and there are plenty of nice cafés and lunch places to enjoy. Families also have access to the Redbridge International School in this neighborhood. The average price of property in Campo de Ourique is €6,974 per square meter.

Estrela neighborhood in Lisbon 

Estrela is a part of town that has a genuinely warm and relaxing family atmosphere. From the Jardim de Estrela to the array of trendy hipster cafés, many people come up to this part of Lisbon to while away the hours in one of the nice coffee shops. 

So, is Estrela one of the best areas to live in Lisbon? There is a more affluent population here, particularly younger professionals and wealthy expats who have relocated for work. It’s understandable that this has become a hot spot in town and that Estrela is considered one of the nicest neighborhoods in Lisbon. 

Property in the Lisbon neighborhood of Estrela costs, on average, €7,694 per square meter. 

Principe Real neighborhood in Lisbon

Principe Real is a favorite for both tourists and locals. The area’s name literally means “Royal Prince” and honors Queen Maria II’s firstborn child. Extending north of Bairro Alto, this area has an array of sophisticated shops and many first-rate restaurants.

Principe Real is pristine and filled with lovely independent and boutique shops, concept stores, a great many restaurants and bars, and stunning properties. It is certainly one of the more upmarket and busier parts of town. The charming Igreja de São Roque (São Roque church), built in the 16th Century, can also be found here, a must-visit for history lovers.

It’s not difficult to see why this trendy district is thought of by many as one of the best areas in Lisbon, Portugal. The people living in Principe Real are a mix of young internationals, nomads, and professional Portuguese families. Even Scarlet Johansson recently snapped up an apartment in Principe Real.

If you are looking to stay just for a little while in Lisbon, then you’ll find several lovely boutique or luxury hotels in this part of town, where you can easily get around the city and have stunning views of the River Tejo.

Property in the Lisbon neighborhood of Principe Real (in the Misericórdia neighborhood) costs, on average, €7,895 per square meter.

Alcântara neighborhood in Lisbon

You should not overlook Alcântara when determining the perfect neighborhood for you. Here, you’ll find the famous 25 de Abril Bridge standing over the neighborhood, where you can head to the river and marvel at the glorious views spread out in every direction. You can also visit the Museu da Carris, which is a museum that showcases the history of public transport in Lisbon.

Alcântara is also a very trendy place now because of Alcântara Docks and Doca de Santo Amaro, which draw the weekend and evening crowds to the west of the city. With excellent restaurants, focusing on seafood in many cases, and bars and clubs decorated in old warehouses, this is one of the hottest locations in town, favored by both expats and locals.

On the other side of the train tracks, however, you’ll find that Alcântara is also a residential neighborhood. Here, on the quieter side of these neighborhoods, you’ll find spacious rooms and apartments that are perfect for younger professionals, couples, families, and the like. The Lisboan International School is an excellent option for families in this area.

LX Factory, an old industrial site that has become one of the star attractions in the city, is also found in Alcântara. Here, artist’s studios, restaurants, traditional shops, performance spaces, and markets selling unique Portuguese wares provide a bit of respite from the rest of the city.

In Alcântara, average property prices are €6,803 per square meter.

Belém and Restelo neighborhoods in Lisbon 

Lisbon’s neighborhoods of Belém and Restelo are the very last within the municipality of Lisbon. These are two of the more historic neighborhoods of the city, offering some of the best things to do in Lisbon. They are filled with many of the best museums and art galleries in the city, as well as monuments and a variety of green spaces.

The Jerónimos Monastery is a UNESCO World Heritage Site, well worth visiting if you are in the area, as are the Museu Nacional de Arqueologia (the National Archaeological Museum) and the Torre de Belém (Belém Tower) for history lovers.

If you are looking to live a little bit out of the hustle and bustle of the city, then this is the perfect location. Families will also find this a nice area to live in because of the parks and space, plus having all the amenities close at hand, such as grocery stores and schools, including the international school, L’Ecole Trillingue.

A bonus is that you will have splendid views of the Tagus River and the Ponte 25 de Abril bridge. Average asking prices in Belém are €6,757 per square meter.

Santos and Lapa neighborhoods in Lisbon

Santos and Lapa are relatively quiet neighborhoods whilst still offering everything you could desire from a Lisbon neighborhood. There is a pleasant mix of old cafés and charming kiosks here, blending with new and trendy restaurants that are emerging. Combined with spacious properties, it is an ideal place for families.

The buildings are well-kept, and there are plenty of nice properties to be found here. Expats and entrepreneurs favor Santos and Lapa over many other areas. If you are looking for a residential neighborhood to move to, Santos and Lapa are both sound options.

Property prices in Lapa and Santos (both in the Estrela neighborhood) cost, on average, €7,694 per square meter.

Parque das Nações neighborhood in Lisbon

There are few neighborhoods in Europe as futuristic as Parque das Nações. This neighborhood is in the quieter end of town. Situated on the Tagus River, this new development is away from the hustle and bustle of downtown Lisbon where the tourists can be overwhelming.

The new development is popular amongst young professionals and working families as it has a crisp, clean, and modern aesthetic to the grand buildings, where you are sure to find quality property for living and investment purposes.

Here you will also find the Pavilhão do Conhecimento, an interactive science museum, and the Lisbon aquarium, making this part of the city a favorite for families with young children.

In Parque das Nações, the average price of property is €8,517 per square meter.

Intendente and Mouraria neighborhoods in Lisbon

In a similar way to Anjos, Intendente, and Mouraria are known as the cool places to hang out in Lisbon. There are indoor markets, old cafés to sit with the locals for a coffee, plenty of “clandestine” Chinese restaurants, and exciting street art.

The area draws a young international crowd and has a mixture of ages and cultures living here.

Average prices in Anjos and Intendente (in the Arroios neighborhood) are €6,244 per square meter, and property prices in Mouraria (in the Santa Maria Maior neighborhood) are €7,321 per square meter. 

Baixa and Rossio neighborhoods in Lisbon

Baixa was largely rebuilt following the tragic earthquake in the 18th century, in the style of the then-contemporary European city planning trend. With what remained of the city and what was rebuilt, the contemporary architecture in Baixa, in central Lisbon, provides a certain neoclassical ambiance.

A unique, central part of the city, perfect if you like strolling around large squares and discovering the exciting culture and heritage of the city. Yes, Rua Augusta Arch and  Praça do Comércio are both impressive architectural achievements and stand-out points in the city.

One of the best things about investing in Baixa is that the neighborhood is very strategically placed. Baixa is a central location, within close proximity to the nightlife center of Bairro Alto, the old town, Alfama and the Castelo, and Chiado, a key shopping area in the city.  The lovely Praça dom Pedro IV (Rossio Square) and Praça da Figueira are also situated close by, where you can relax and watch the world go by.

If you stay in Lisbon, this is an ideal location to have as your base. You can quickly get to the beaches in Cascais and Carcavelos by taking a short train ride, and all the significant sightseeing locations are a short walk away. Public transport is cheap in Lisbon, so it may be better than hiring a car to get to the surrounding areas.

One of the most famous things to try in Baixa is the ginjinha bars, one of the city’s key tourist attractions, where they sell traditional sour-cherry liquor. And you also have the Lisbon Story Center, an interactive museum where you get up to speed on the rich history of the city. One thing to bear in mind about this part of town is that, in parts of Baixa, it can get quite crowded, particularly during the peak tourist season.

Properties in the freguesia (municipal parish) of Santa Maria Maior, which encompasses the two neighborhoods of Baixa and Chiado (more on Chiado below), cost, on average, €7,321 per square meter.

Chiado neighborhood in Lisbon  

Just up from Baixa, Rua do Ouro and Rua Augusta are parallel to one another, and halfway down them, you’ll find the Santa Justa Elevator (Elevador de Santa Justa), a must for spectacular views of the city.

Famous for its lovely cafes, many star attractions, and typical architecture, Chiado is a lovely place to invest in or live.  

While you’ll find busy streets in the summer, its central location makes it easy to get around the city.

Shoppers will also delight in the range of shops on offer, both chain stores and independent Portuguese shops selling their wares. 

Bairro Alto neighborhood in Lisbon

A short walking distance away from Baixa, you’ll find Bairro Alto. This part of town can get quite noisy at night, so it may prove to be a better investment opportunity than a home, but you should be able to find some quiet areas away from the heady nightlife.

Bairro Alto is a melting pot of different cultures, street performers, fashionable restaurants, and celebrated nightlife. Cais do Sodré, with the famous Pink Street (formerly the city’s red-light district), is one of the liveliest places in Lisbon, with tiny bars spilling out onto the cobblestone streets in the evenings and during the weekend.

If looking to eat on Pink Street, be sure to avoid the tourist traps and souvenir shops, which can be a little overpriced, and venture instead into more affordable Portuguese-owned restaurants in Bairro Alto or one of the trendy, up-and-coming restaurants.

The steep streets of Bairro Alto also lead to some of the best restaurants known for their old-world charm and live Fado music, like Tasca Do Chico, Café Luso, Adega Machado, and Povo.

Property in the Lisbon neighborhood of Bairro Alto (in the Misericórdia neighborhood) costs, on average, €7,895 per square meter.