Buying Lisbon real estate

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 higher 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.

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 to buy 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 just neighboring 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.

The average price for a 75 sqm 2-bedroom apartment: €450,000 – €500,000

Real estate prices in Lapa and Santos

Lapa and Santos are also highly attractive investment opportunities, both in the tourist short-term rental market and in the 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 families thanks to the parks, cafes and schools that surround the area.

The average price for a 75 sqm 2-bedroom apartment: €400,000 – €450,000

Real estate prices in Avenidas Novas

Avenidas Novas is not the main touristic area of town but still a very popular choice for real estate investment in Lisbon as it is a bustling area where locals, expats and families mostly are living and working. You can get more value for money in this part of town and can expect to rent long-term to students or professionals.

The average price for a 75 sqm 2-bedroom apartment: €300,000 – €400,000

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.

The average price for a 2-bedroom apartment: €375,000 – €425,000

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 a plethora of cafes and restaurants.

The average price for a 75 sqm 2-bedroom apartment: €450,000 – €500,000

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 Tagus 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.

The average price for a 75 sqm 2-bedroom apartment: €369,750 – €415,000

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 to be the main hot-spot of tourists. However, for families from a relocation perspective, these areas have plenty of space and are still very pretty and happening neighborhoods to live in.

The average price for a 75 sqm 2-bedroom apartment: €415,000 – €475,000

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 family, while still being centrally located.

The average price for a 75 sqm 2-bedroom apartment: €440,000 – €515,000

With so many great opportunities for investment, the real challenge as a purchaser is narrowing your search.

Am I paying the fair price for my real estate?

Navigating real estate pricing can be a challenge even in our home countries. To be assured whether you are paying a fair price for real estate in Lisbon is a complex issue that we would always recommend enlisting the help of a trusted professional to help you navigate. There are localized issues like how a property’s price per square meter compares to what’s nearby, the historic prices that houses on the street have been sold for, and whether the area is located close to schools, shops, and parks.

Is it a good idea to buy real estate in Lisbon?

Over the past few years, buying real estate 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.

Is there a real estate bubble in Lisbon?

Lisbon is certainly a hot property market, where demand is higher than supply. However, prices have been stable for some time and show no signs of decreasing, which signals there has been more of a paradigm shift than a bubble. Granted, the prices certainly haven’t risen in line with local salaries, but the housing market is stable and should be met with adaptability from the governmental and local level.

Where can I find real estate to buy in Lisbon?

Property specialists

1.Buyers agents

Using a buyer’s agent to find real estate in Lisbon will help you as an expat to discover a range of properties specific to your search. A buyer’s agent will also help you know in detail how sound the investment you’re making is as they add localized and unbiased knowledge from the profession.

A buyer’s agent primarily works for you as their client and therefore has the sole purpose of representing your goals in the transaction.

2.Realtors

Realtors will also have a range of properties on offer to show you. They can help you find your ideal Lisbon property, but their offers will not cover the whole market like a buyer’s agent will.

A realtor also works primarily for the seller of a property as their client, so they will have the purpose of selling a particular property ahead of your own specific goals and needs.

Tips on buying Lisbon real estate

Buyers agents versus realtors: we recommend using a buyer’s agent for a more targeted search and a more impartial interest representation
When buying Lisbon real estate as an investment opportunity make sure you know the market in Lisbon well and you know where you can yield the highest returns
If you are looking to purchase property to move with family, make sure you have researched all the areas thoroughly
Search for the best real estate deals with trusted professionals who will show you a wide range of properties to match your criteria
Be careful to do your due diligence when buying a property in Lisbon
Make sure you are making the right offer in the negotiation process and get the right documents in order

Should I apply for the Portugal Golden Visa to live in Lisbon?

The Golden Visa is a citizenship by investment scheme that has been immensely popular over the past years. The rules for purchasing real estate in Lisbon under this scheme are set to change in 2021 so unless you’re ready to purchase now, it’s likely not the route you should be thinking about.

Get in touch

Goldcrest are property experts and can assist you in making the best investment decision for Lisbon real estate. We have deep expertise in the Portuguese real estate market and will always act diligently on your behalf to negotiate the best possible deal for you.

FAQ’s

What’s the market like in Lisbon? Is it possible to get high returns?

Lisbon is a hot property market that offers investors attractive rates of return and rental yields.

What are the best areas to buy real estate in Lisbon?

The most sought-after real estate in Lisbon is in Bairro Alto, Lapa, and Campo De Orique. There are great opportunities for living well in these neighborhoods as well as from an investment perspective offering promising rental yields for both long and short rentals.

Should I apply for a Golden Visa to live in Lisbon?

At this stage, the rule for purchasing property to qualify you for a Golden Visa will no longer apply to Lisbon in 2021, so we would advise taking another route.

(Source for prices per sqm of local areas, idealista.pt)

Porto luxury real estate guide

Why invest in Portugal’s low-density areas

How to buy Algarve real estate in Portugal guide