15 Best Neighborhoods in Lisbon to Live: 2025 Guide for Expats

Why Lisbon's Neighborhoods Attract Residents and Investors

Lisbon is popular among expats, investors, and locals alike because of its high rental yields, a strong economy, an excellent quality of life, and solid capital appreciation. It’s a well-connected city with an extensive public transit system, great restaurants, and affordable healthcare.

Lisbon is the capital of Portugal and a nightlife hub that’s incredibly busy during the peak summer season. One of its best-selling points is that Lisbon has cheaper property prices than major European capitals like Paris, London, Oslo, Amsterdam, and Stockholm. Overall, the cost of living in Lisbon is relatively low, and public transport is cheap.

Lisbon’s property market is also more affordable than that of major cities in the United States, such as Los Angeles, New York, and San Francisco. Due to its massive potential for increased returns, the city is a great place to invest.

Portugal has welcoming immigration policies. For example, non-EU citizens can move to Portugal via the Golden Visa (residency by investment program), D7 (retirement or passive income visa), D8 (Digital Nomad Visa). Although the Portugal Golden Visa no longer includes real estate investments, it remains a popular choice for investors.

Average asking prices in Lisbon

What are the best neighborhoods to live in Lisbon?

Lisbon has 24 different neighbourhoods. To choose the best area to live, you should explore each of them, compare the property prices, and the lifestyle they offer.

Overall, buying property in Lisbon is more affordable than in many Western European capitals and the United States. Here are the top 15 best neighborhoods in Lisbon for expats, retirees, and digital nomads for 2025.

1. Alfama

Alfama is often called the “Heart of Lisbon” due to its rich history and welcoming spirit. When you walk the zig-zag medieval streets, it feels like you are stepping into the capital’s past, where neighbors greet each other, and life moves at a slower pace. It is the best neighborhood for expats seeking a village-like atmosphere in the middle of the city.

Alfama is also one of the most visited areas in Lisbon, as it is located between São Jorge Castle and the Tagus River. It offers stunning river views and some must-see Lisbon tourist attractions.

Alfama is famous for its Fado music, traditional atmosphere, and a strong sense of community. But the area has limited parking and metro access. It is also a trophy location for short-term rentals in Portugal. However, as of late 2025, new short-term rental (AL) licenses are prohibited.

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

2. Graça

Graça is one of the best neighborhoods in Lisbon to live for expats, offering an authentic, modern, and trendy atmosphere. Graça sits on a hill above the city center and provides panoramic views and a large expat community.

The neighborhood is walkable but hilly, with good tram and bus connections. Safety is solid, and the area feels residential rather than tourist-heavy. Graça balances quiet streets with vibrant local life. It features many neighborhood cafés, traditional bakeries, and small bars instead of loud nightlife.

Cultural events and viewpoints contribute to its historic charm, while nearby gardens, such as Jardim da Cerca da Graça, offer a serene green space. Overall, Graça Lisbon real estate (in the São Vicente neighborhood) is slightly cheaper than that in Alfama.

• The average asking price for property in Graça is €6,401 per square meter.

3. Ajuda

Ajuda is one of the best residential neighborhoods in Lisbon for budget-conscious expats and families with children. It is located west of the city center, close to Belém, and is known for its local, community-focused feel. It is a safe place to live that feels calm and residential.

The neighborhood is value-driven with access to public schools, university facilities, and local shops, making it practical for families and students. Families who are moving to Lisbon benefit from proximity to the vast Monsanto Forest Park and the riverfront paths of Belém.

Ajuda appeals to expats who want an affordable, American-friendly neighborhood in Lisbon, away from heavy tourism. A real estate agent in Lisbon can provide a more detailed market analysis of all the neighborhoods in the area.

• The average asking price for property in Ajuda is €5,366 per square meter.

4. Avenidas Novas

Avenidas Novas is one of the best neighborhoods in Lisbon for professionals, digital nomads, and high-net-worth investors. This central, modern district is known for wide avenues, offices, and contemporary apartment buildings.

Sub-areas like Saldanha and Campo Pequeno are especially popular with professionals who want flat streets, fast metro access, and reliable infrastructure. Walkability is excellent, safety is high, and services are abundant.

Residents enjoy a balance of urban and natural environments with the Gulbenkian Gardens and Parque Eduardo VII nearby. The neighborhood offers a calm weekday atmosphere with restaurants, cafés, and gyms rather than nightlife hotspots.

Overall, Avenidas Novas is often considered one of the safest and best areas to live in Lisbon for long-term residents and investors.

• The average asking price for property in Avenidas Novas is €8,377 per square meter.

5. Campo de Ourique

Campo de Ourique is one of the best neighborhoods in Lisbon for expat families and long-term living. This village-like district is west of the city center. The area is flat, highly walkable, and widely considered one of the safest neighborhoods in Lisbon, Portugal.

Families are drawn to the area for its prestigious schools, local market, access to healthcare, and a range of everyday amenities. Nightlife is low-key. You can explore different restaurants and cafés rather than bars. Cultural life is community-focused, and Jardim da Estrela is within easy walking distance.

Campo de Ourique consistently ranks as one of the best places to live in Lisbon for families and American expats. Investing in Campo de Ourique, Lisbon real estate offers high capital appreciation and stable rental yields.

• The average asking price for property in Campo de Ourique is €6,974 per square meter.

6. Estrela

Estrela is one of the most expensive neighborhoods in Lisbon. It is a popular choice among affluent families, retirees, and digital nomads who seek a more peaceful lifestyle. This elegant, traditional district is close to the historic center, anchored by the Basilica and Jardim da Estrela.

The area is very walkable with wide streets and excellent safety standards. The neighborhood has become increasingly popular with the opening of the Estrela Metro station, which provides direct subway access for the first time.

Estrela is often listed among Lisbon’s safest and most desirable residential neighborhoods, making it ideal for families with children and retirees with a high passive income. Schools, cafés, and local shops are nearby, while nightlife remains subdued.

• The average asking price for property in Estrela is €7,694 per square meter.

7. Príncipe Real

Príncipe Real is one of the richest neighborhoods in Lisbon. It is a sophisticated area popular among digital nomads, high-net-worth individuals, and LGBTQ+ expats in Portugal.

Príncipe Real sits above Chiado and Bairro Alto, offering a central location with a stylish atmosphere with 19th-century buildings. The area is walkable, safe, and filled with luxury stores and several world-class restaurants. You can also enjoy the stunning views of the River Tejo.

It has an active nightlife, centered around cocktail bars and gay-friendly clubs. Green spaces like Jardim do Príncipe Real are a great choice for outdoor activities. However, the limited supply and high demand cause property prices to keep rising. Even Scarlet Johansson recently snapped up an apartment there.

• The average asking price for property in Príncipe Real (in the Misericórdia neighborhood) is €7,895 per square meter.

8. Alcântara

Alcântara is one of the best places to stay in Lisbon. Once an industrial area, it’s now known for the LX Factory and the newly opened Lisbon International School. Its riverside location offers superb views of the Tagus and the 25 de Abril Bridge.

The lifestyle balances the industrial vibe at the Doca de Santo Amaro with a peaceful residential vibe on the other side of the train tracks. Here, you can find spacious rooms and luxury apartments in Lisbon that are perfect for younger professionals, couples, and families.

The neighborhood is undergoing a massive shift due to the Metro Red Line extension. For investors, Alcântara offers significant capital appreciation potential as it matures from a “hidden gem” into a primary residential neighborhood in Lisbon.

• The average asking price for property in Alcântara is €6,803 per square meter.

9. Belém and Restelo

These are among the best neighborhoods in Lisbon for families seeking quiet, affluent living. Located along the river west of the city center, Belém and Restelo are known for wide streets, green spaces, and historic prestige.

You can easily walk around the areas, where it is safe to travel at night for both women and children. Families get access to international schools in Lisbon in the area, such as the British School of Lisbon (BSL) and PaRK International School.

The area is filled with museums, art galleries, monuments, and green spaces, offering a lot of things to do in Lisbon. Restelo, in particular, is considered one of Lisbon’s most expensive and wealthy neighborhoods.

• The average asking price for property in Belém and Restelo is €6,757 per square meter.

10. Santos and Lapa

These are some of the best neighborhoods in Lisbon for professionals and luxury expats. Santos and Lapa sit between Cais do Sodré and Estrela, offering central access.

Santos has a creative atmosphere with galleries and trendy restaurants, while Lapa is quieter and more upscale. Walkability is strong, safety is high, and schools and embassies attract expat families.

Nights are lively in Santos but calm in Lapa, making this area ideal for those who want nightlife nearby without living on the loudest streets. They are an ideal place for living in Lisbon for families who prefer spacious houses and a residential atmosphere.

• The average asking price for property in Santos and Lapa is €7,694 per square meter.

11. Parque das Nações

There are few neighborhoods in Europe as futuristic as Parque das Nações. This modern, redeveloped area from the 1998 World Expo has sleek architecture and an easy-to-navigate layout. It is well-connected to major transport hubs and train stations.

Situated on the Tagus River, this new development is away from the hustle and bustle of downtown Lisbon. It is one of the best area to stay in Lisbon for young professionals and working families. Here, you will also find the Pavilhão do Conhecimento, an interactive science museum, and the Lisbon aquarium.

• The average asking price for property in Parque das Nações is €8,517 per square meter.

12. Intendente and Mouraria

Among Lisbon’s most traditional neighborhoods, these areas offer a raw, multicultural atmosphere. You can often find fantastic value, making them a truly affordable option.

The area attracts a young international crowd and features a diverse mix of ages and cultures. It is a great place to invest if you are planning to open a business or are looking for a place to settle with many foreigners.

• The average property price in Anjos and Intendente (in the Arroios neighborhood) is €6,244 per square meter, and in Mouraria (in the Santa Maria Maior neighborhood) is €7,321 per square meter.

13. Baixa and Rossio

These are the main commercial areas of Lisbon’s downtown. They are very easy to walk, popular with tourists, and feature grand architecture with tall buildings.

Baixa is a better fit for long-term renters or expats seeking a central life that turns peaceful in the evenings. It is home to the interactive Lisbon Story Centre, which is perfect for learning the city’s history.

Rossio is the energetic heart and major transport hub, best suited for short-term stays and those who love being in the middle of the action. Just off the square, you’ll find the famous ginjinha bars serving traditional sour cherry liqueur.

From here, it’s easy to get to the coast. Just hop on a train at Cais do Sodré station, and it can take you to the beaches in Carcavelos and Cascais.

On the other hand, golfers can find world-class courses nearby in Estoril and Quinta da Marinha. You can read more about these properties in our guide to Lisbon and the Lisbon Coast’s great golf courses.

• The average property price in Baixa and Rossio is €7,321 per square meter.

14. Chiado

This is the best luxury neighborhoods in Lisbon for high-end investors. Chiado sits between Baixa and Bairro Alto at the heart of Lisbon. The area has the easiest access to international schools in Lisbon, making it a great location for students.

Residents can explore the different theaters, bookstores, cafés, and upscale shopping stores. The nightlife is great with cocktail bars and live music venues.

However, Chiado has limited greenery within its immediate grid. To see green spaces, you would have to walk 10 to 15 minutes to Jardim do Príncipe Real or Jardim da Estrela, or head down to the Ribeira das Naus riverfront promenade.

Apartments are often small, lack storage, and are impractical for children. But they are highly beneficial for young professionals and digital nomads due to their central access. Along with Avenida da Liberdade, Chiado has the highest price per square meter in Lisbon.

• The average asking price for property in Chiado is €6,791 per square meter.

15. Bairro Alto

This central neighborhood is known worldwide for its vibrant nightlife. It is a go-to choice for night owls. Visitors often look for soundproofed private rooms here. This district is known for its beautiful cobblestone streets and various short-term rentals.

The area has great restaurants, beautiful architecture, and a bohemian charm. You can enjoy live Fado music, narrow cobblestone streets, and colorful tiled facades.

By night, it transforms into a nightlife mecca with excellent restaurants and Fado houses. While you won’t find many larger hotels here, the area excels in luxury boutique hotels and stylish apartments.

• The average property prices in Bairro Alto (in the Misericórdia neighborhood) are €7,895 per square meter.

Best neighborhoods in Lisbon to live by lifestyle

The best place to live in Lisbon depends on your budget and long-term goals. For example, Avenida da Liberdade and Príncipe Real are for luxury investors who prefer a trendy, upscale living.

Chiado is a great place due to its central location and attractions, which come at a higher price. Alfama boasts its historic charm and Fado music, Bairro Alto offers vibrant nightlife, and Belém features historical landmarks.

Neighborhoods like Avenidas Novas, Saldanha, and Parque das Nações are a top choice for a cosmopolitan atmosphere and proximity to major businesses. At the same time, areas such as Campo de Ourique, Estrela, and Alvalade are more family-oriented, with a quiet lifestyle.

A real estate agent or a buyer’s agent can research the property market and find off-market listings in the neighborhood you prefer. A buyer’s agent works on behalf of the buyer and negotiates prices, navigates the purchasing process, and keeps you up with the latest market trends.

Choosing the Right Neighborhood in Lisbon

So, is Lisbon a good place to live? The answer is yes! There are many neighborhoods in Lisbon to choose from. The list below can narrow down your options.

For example:

• If you want modern buildings with easy transport, choose: Avenidas Novas, Parque das Nações, or Alcântara.
• If nightlife is important for you, pick: Bairro Alto, Cais do Sodré (below Chiado), or Príncipe Real.
• If you are moving with family, go for: Campo de Ourique, Estrela, Parque das Nações, Belém, or Restelo.
• If you want to save money, look at: Ajuda, Intendente, or Mouraria.

Many investors consult with a real estate lawyer in Lisbon before purchasing or selling property in these neighborhoods.

What can Goldcrest do for you?

Whether you are looking to retire in Lisbon or move with family, the Portuguese capital has something to offer each buyer. Goldcrest is the first buyer’s agent in Portugal. We have helped hundreds of expats from all walks of life snap up the property of their dreams in Portugal.

From scouting out properties all the way through to property acquisition, we provide a service tailored to your exact requirements. Should you be seeking out your ideal home in Portugal, don’t hesitate to get in touch.