Updated: March 17, 2023
Are you interested in buying real estate in Lisbon? In this guide, we’ll tell you all you need to know and some insider tips on how to get a good deal buying real estate in Lisbon, as well as information on all the best areas and how to get the highest returns on your investment.
If you’re considering buying Lisbon real estate, then you are likely wondering what the best neighborhoods in Lisbon are. Lisbon real estate has become more popular over the last ten years both with investors and with expats trading in their lives for a sunnier, and better quality of life. As far as places to live in Lisbon go, prices do have quite a range depending on the area of Lisbon you are interested in. We will take you through the main Lisbon areas and what you can expect to pay for real estate in each of them.
In this article, we’ll cover the following:
- Lisbon real estate: An overview
- Why buy a house in Lisbon?
- Which is the best neighborhood in Lisbon to buy real estate?
- Am I paying a fair price?
- How can I find Lisbon real estate?
- Tips for buying property in Lisbon
- Tips on buying Lisbon real estate
- Get in touch
- Plus much more!
What’s going on with real estate in Lisbon?
Everyone’s talking about Europe’s hottest real estate market, Lisbon. But what happened to make property in Portugal’s capital so interesting to investors? There are many different factors that contributed to the rise in Lisbon real estate, from economic growth to the rise in the tourism sector, as well as an increase in short-term rentals.
Portugal is undergoing an economic and social boom, attracting a new wave of affluent international investors, entrepreneurs, and professionals. The dynamic Portuguese market has a wide variety of investment opportunities and is forecast to continue on a trajectory of healthy growth in the coming years. The city of Lisbon and Portugal as a whole offer a number of tax benefits to incentivize redevelopment in historic centers.
- Lisbon population: 2.7 million
- Number of foreigners: 260 503 (as of 2020)
- International schools: 14 (British, French, American, German, and more)
- 20 Hospitals
- 7 marinas
- 16+ beaches along the Lisbon coast and close by
Why buy a house in Lisbon?
Over the past few years, buying property in Lisbon has become hugely popular with investors from all over the world, as well as those who move to the city to make it their home. As the capital city of Portugal, the municipal area is a major tourist hub for the country and also the rest of Europe. Additionally, the picturesque city has a buzzing pulse and rich cultural history.
Here, we’ll delve into some reasons why the bustling Portuguese capital could be the perfect place for you to buy property.
An Investor’s Paradise
The Portuguese economy has experienced many trials and tribulations over the years. However, the real estate market seems to be moving from strength to strength and has experienced tremendous growth in the last few years.
The Lisbon real estate market has benefitted greatly from new investment policies that have transformed the city into an urban paradise, for businesses and residents alike. Foreign investments, urban renewal projects, and the rise of tech, startups, and key businesses in the city have coincided to create an investor’s paradise.
Lisbon has increased its competitiveness with other cities in Europe, including London, with its transformative policies. For example, in investing heavily in startups and attracting entrepreneurs to its shores.
Other examples include Volkswagen and Mercedes-Benz opening tech hubs in the city, Websummit, the biggest tech festival in the world relocating to Lisbon in 2016, and countless international companies setting up shop in the capital and other parts of Portugal.
Incentives to attract expats include the Non-Habitural Resicence (NHR) scheme, which, if structured correctly, allows you to live with significant tax benefits for up to ten years.
The Portugal Golden Visa
The Portugal Golden Visa program, introduced in 2012, has fast become one of the most popular residency-by-investment schemes of its kind. With the possibility to acquire citizenship after five years, there are serval options to consider, including purchasing commercial real estate in Lisbon, purchasing residential real estate in interior areas of the country, or making a fund investment.
Which is the best neighborhood in Lisbon to buy real estate?
Real estate prices in Bairro Alto
Bairro Alto is one of the most popular places you can choose when buying property as an investor. It’s right in the center of town and as far as Lisbon areas go, it’s in the mid to high range of prices for buying Lisbon real estate. Bairro Alto is a key tourist zone and neighbors Baixa Chiado, a high-end shopping district. This area is known to attract investments in short-term holiday rentals, where you can expect to receive high rental yields.
Property in the Lisbon neighborhood of Bairro Alto (in the Misericórdia neighborhood) costs on average €6,825 per m².
You can see more about this part of the city in our guide to real estate in Baixa, Lisbon.
Real estate prices in Lapa and Santos
Lapa and Santos also offer highly attractive investment opportunities, both in the tourist short-term rental market and in long-term rental possibilities, as the neighborhood has high demand from an affluent local renters’ market too. If you’re thinking of relocating to Lisbon, Lapa and Santos are amongst the best Lisbon areas to live with a family thanks to the parks, cafes, and schools that surround the area.
Property prices in Lapa and Santos (both in the Estrela neighborhood) cost on average €5,670 per m².
Real estate prices in Avenidas Novas
Avenidas Novas is not the main touristic area of town but is still a very popular choice for real estate investment in Lisbon as it is a bustling area where locals, expats, and families live and work in the city. You can expect to rent long-term to students or professionals.
Property costs on average €6,046 per m².
Real estate prices in Intendente and Mouraria
Intendente and Mouraria are some of the most up-and-coming neighborhoods in Lisbon and therefore present an attractive opportunity to investors looking to cash in a return on a sale in a few years’ time. The prices in this area are quite reasonable considering how well located the area is in Lisbon. There is both a short-term rental market for tourists as well as a long-term market for locals and young professionals in this hip part of town.
Average prices in Intendente (in the Arroios neighborhood) are €4,766 per m² and property prices in Mouraria (in the Santa Maria Maior neighborhood) are €6,145 per m².
You can see more about this part of the city in our Intendente real estate guide.
Real estate prices in Campo de Ourique
Campo de Ourique is a sought-after and quiet part of town that presents more opportunities in the long-term rental market. It’s an ideal neighborhood to relocate to with family too, considering the green spaces, the indoor food hall, and plethora of cafes and restaurants.
The average price of property in Campo de Ourique is €5,561 per m².
You can read more about this area in our Campo de Ourique real estate guide.
Real estate prices in Alfama and Graça
Graça and Alfama are the oldest parts of town, situated up high with panoramic views of the city and theTagus river from the famous miradouro look-out points. It’s no wonder that these neighborhoods are the top choice for tourists visiting Lisbon. There are however certain rules in place that have prevented the initiation of new Airbnb contracts in this part of town so, from a purely short-term holiday rental investment standpoint, this might not be the best option.
Average prices for the Alfama (in the Santa Maria Maior neighborhood) are €6,145 per m² whereas property in Graça (in the São Vicente neighborhood) is slightly cheaper at €4,514 per m².
You can read more about this area in our Alfama real estate guide and Graça real estate guide.
Real estate prices in Belém, Ajuda, and Restelo
These parts of town will be better value per square meter, as they aren’t so centrally located in the main touristic hot-spot locations. However, for families from a relocation perspective, these areas have plenty of space and are still very pretty and happening neighborhoods to live in.
In Ajuda, the average price of property is €3,989 per m², while in Belém and Restelo it is a little bit more expensive at €5,395 per m².
Real estate prices in Parque das Nações
Parque das Nações is a newly re-developed quieter part of town that presents interesting opportunities to investors looking to get good value for their money with great growth potential on the investment. There are striking contemporary buildings here and the area lines the waterfront of the Tagus river. It’s also a spacious place to move to with a family, while still being centrally located.
In Parque das Nações the average price of property is €5,965 per m².
With so many great opportunities for investment, the real challenge as a purchaser is narrowing your search.