Updated: July 3, 2024

 

Planning a move to the big city of Lisbon? Before you take the leap, it’s important to discover more about the best neighborhoods in Lisbon so you can make an informed decision about where to live in the city. Lisbon is a vibrant capital with many different areas to explore, each emanating its own distinctive energy.

From Lisbon’s Cathedral to the inviting riverside market, Mercado da Ribeira, that houses the Time Out Market food hall with Michelin star restaurants and traditional bakeries selling delicious treats like pastel de nata as well as independent boutiques offering upscale shopping experiences, there’s no wonder that the hilly streets of the best neighborhoods in Lisbon attract expats from across the globe.

The best places to live in Lisbon will largely depend on your needs. The old parts of the city can seamlessly blend into a trendy new development, and there is magic to this type of juxtaposition of old world charm and contemporary European living. The city is sprawling with fantastic eateries at bargain prices, boutique Lisbon hotels, art galleries, romantic rooftop bars playing live Fado music, and beautifully dilapidated live music venues. 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.

In this article will provide you with the ultimate guide to life in Lisbon and help you find the best neighborhood to settle down in.

Why are expats moving to Lisbon?

best-neighborhoods-in-Lisbon

This exciting cosmopolitan capital is a honeypot for digital nomads, retirees, students, and expat families. The city provides an affordable lifestyle in comparison to many other Western European countries. If you are considering buying, you can check out our Expert Guide to Buying Lisbon Real Estate, where we’ll provide you with everything you need to know about property in the capital.

The expat community in Portugal’s capital is continuing to grow rapidly. A lot of people that move to the city center are digital nomads and while many stay only a couple of months at a time, many fall in love with the city and end up staying much longer than expected.

Families benefit from the very good education system in Portugal, access to the best international schools in Lisbon, and there are countless outdoor activities to enjoy with your children. There are many calm neighborhoods in Lisbon that would be a top choice for families that are looking to move to Portugal.

Retirees favoring a wonderful climate, top-quality healthcare, and relaxed quality of life are also coming to call Lisbon home. While the Algarve has long been favored by the British, many expats choose Lisbon due to the vast number of cultural events on offer, top traditional restaurants (if you are looking for a Michelin star restaurant, you will find twelve), numerous parks to enjoy, and the relaxed quality of life.

Alongside this, with the booming tech scene, many young professionals have realized that Lisbon provides them with everything they need. Young professionals flock to the city that is on all the lists of best places for digital nomads, Web Summit, the biggest tech festival in the world, moved to the Portuguese capital in 2016, and countless international companies and new savvy startups are making the most of the capital.

What are the best neighborhoods in Lisbon?

The best and most popular neighborhoods in Lisbon will be outlined below, and each part of town will have its own allure, depending on who you are and what you are looking for. These are certainly the most-loved districts when it comes to the best places to live in Lisbon, for reasons we’ll outline below in this Lisbon neighborhood guide.

Alfama

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 so intricate that they can make you feel sentimental.

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 get 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 interesting 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.

Graça

Best-neighborhoods-in-Lisbon

Graça is Alfama’s cool younger sister, perched next to Alfama – and is truly one of Lisbon’s top 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 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.

Average prices for the Alfama (in the Santa Maria Maior neighborhood) are €6,700 per m² whereas property in Graça (in the São Vicente neighborhood) is slightly cheaper at €5,018 per m².

Ajuda

Ajuda is slightly off the beaten track, to the west of the city. However, Ajuda is evolving to become one of the cool neighborhoods of 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 €5,043 per m²,

Saldanha

Saldanha has an old grandeur to it, from its distinctive secular architecture to the wide streets and sidewalks. The neighborhood is home to several universities as well as a hub for working professionals. Saldanha is one of the busier areas of Lisbon and has hundreds of young lawyers, consultants, and business people passing through during the week.

The shops around Saldanha are great, and you won’t struggle to find all the big brands and labels you could wish for in the area.

Rato

Rato is a well-located point in Lisbon, sandwiched between Principe Real and Campo de Ourique. It’s considered one of the best places in Lisbon to live in, probably because it is right in the thick of the action. In Rato, there is still a sense of calm and tranquility, but it is about as central as it gets.

You can take a tram to Alfama and Graça from Rato, and you can walk to Santos in no time. It’s also possible to walk up to Marques de Pombal in a short amount of time, which is the heart of Lisbon and its business district. Living in Rato, the pros are great restaurants and cafés, a good selection of shops, and of course, good links to the rest of the city.

What are the nicest neighborhoods in Lisbon?

Avenidas Novas

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 that 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 makers are 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 €7,126 per m² in Avenidas Novas.

Campo de Ourique

best-neighborhoods-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 is also a popular Lisbon 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.

The average price of property in Campo de Ourique is €6,367 per m².

Estrela

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, €7,231 per m².

Principe Real

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 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 between 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 hotels 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, €7,021 per m².

Alcântara

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.

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 €6,324 per m².

Belém and Restelo

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 and 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 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. 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 €6,548 per m².

What are the quiet neighborhoods in Lisbon?

Santos and Lapa

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, also making it 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, €7,231 per m².

Parque das Nações

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 €7,728 per m².

Explore our complete guide to the Lisbon real estate market

Click Here Arrow Icon

What are the cool neighborhoods in Lisbon?

Anjos

best-neighborhoods-in-Lisbon

Anjos is a firm favorite as one of Lisbon’s key expat neighborhoods. This is partly because Anjos got voted as the coolest neighborhood in the world recently by Time Out. Indeed, this part of town is still shabby chic but filled with vintage stores, record shops, and a huge variety of different cuisines to sample at low prices.

Some of the cobblestone streets are a little run-down, but there is huge potential for investments here, particularly if you manage to get a property in excellent condition. Anjos is also a residential neighborhood, with many young professionals settling in this area. Anjos is also home to a couple of nightclubs with a great nightlife scene, where the party goes on all night long in the summer months. Indeed, few neighborhoods are as dynamic or vibrant as Anjos, with an incredible mix of cultures creating a unique part of the city.

Intendente and Mouraria

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 €5,885 per m², and property prices in Mouraria (in the Santa Maria Maior neighborhood) are €6,700 per m².

Baixa

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.  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 this 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.

Chiado

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. The lovely Praça dom Pedro IV (Rossio Square) and Praça da Figueira are also situated here, where you can relax and watch the world go by. Shoppers will also delight in the range of shops on offer, both chain stores and independent Portuguese shops selling their wares.

Properties in the freguesia (municipal parish) of Santa Maria Maior, which encompasses the two neighborhoods of Baixa and Chiado, cost, on average, €6,700 per m².

Bairro Alto

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, 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 side 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 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, €7,021 per m².

Lisbon Neighborhoods Map

Lisbon has some of the very best neighborhoods in Portugal. Lisbon neighborhoods are basically divided into metropolitan areas characterized by seven hills. The entire city is located on the Western coast of Portugal at the edge of the Tagus River and is in the middle of Portugal between Porto in the North and Faro in the South.

So, what is the best place to live in Lisbon? The answer to this question is not quite so easy, as the best places to live in Lisbon, Portugal, will largely depend on your needs and what you are looking for – be it boutique hotels, luxury hotels, or even a trendy hotel, art galleries, a residential neighborhood, alternative shops, traditional crafts, or restaurants offering authentic Portuguese cuisine. There are several residential neighborhoods in the city and the best place for you depends on what you are looking for. We hope we’ve provided you with an informative overview to help you kickstart your move to stay in Lisbon.

Check out our article: A Quick Guide to Areeiro, Lisbon, Real Estate.

map of Lisbon neighborhoods

Get in Touch with Our Relocation Experts

Goldcrest are property and relocation experts. We can assist you in making the best investment decision for Lisbon real estate, in addition to discussing where to live in Lisbon, depending on your needs. 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. If you’re planning to move to Lisbon, we can help. Also, our guide to finding a property in Portugal can be found here.

Are you moving to Portugal with a family? If so, our Lisbon Neighborhoods Close to International Schools article may be of interest to you.

Book a complimentary call to discuss your options with our team of experts today.

Contact Us

Frequently Asked Questions about Lisbon Neighborhoods

It depends on what you value most in a neighborhood. The below neighborhoods are considered some of the best to stay in Lisbon:

  • Ajuda
  • Alfama
  • Alvalade
  • Anjos
  • Avenidas Novas
  • Baixa
  • Bairro Alto
  • Belém
  • Campo de Ourique
  • Chiado
  • Estrela
  • Graça
  • Intendente
  • Lapa
  • Mouraria
  • Parque das Nações
  • Príncipe Real
  • Rato
  • Restelo
  • Saldanha
  • Santos

Lisbon expat neighborhoods are Graça, Intendente, Mouraria, Estrela, and Anjos.

Bairro Alto neighborhood in Lisbon is a hotspot for night events and clubs and is considered a top gay neighborhood, as well as Principe Real, which is home to some of Lisbon’s best new clubs.

You can see our article here on: Where Are the Best Gay Areas in Lisbon

The best area to live in Lisbon will depend on your circumstances and what you are looking for. There are few Lisbon neighborhoods in the city where you will not come across something special, whether it is a lovely urban park, a rooftop bar, or a trendy cafe. If you are moving to Lisbon with a family, then a quieter neighborhood such as Santos, Lapa, Campo do Ourique, Estrela, or Parque das Nações may be the best options for you. Young professionals may find Anjos, Intendente, or Mouraria more to their liking. Estrela is also a very good location for young professionals.

If you are looking to secure your home in one of the oldest and most traditional parts of the city, check out Alfama or Graça, while investors should focus on Bairro Alto, Baixa, and Chiado, where they should be able to rent out their properties throughout much of the year.

There are several different neighborhoods to consider. For young professionals and digital nomads, consider Alcântara and Anjos. Families often opt for Estrela, which has many green parks and is in a quiet part of town. For luxury, consider Principe Real and Avenida da Liberdade. Marvila is also an up-and-coming area that is proving to be popular with expats, and then Alfama and Graça are for those that are looking to capture the historic charm of Lisbon.

The most expensive parts of the city are Santo Antónia, Misericórdia, Santa Maria Maio, and Avenidas Novas.

There is not a particular place where you should not live in Lisbon. Note that as with any large city, be aware that in tourist-heavy areas, pickpockets and petty crime can take place, particularly in the city center.

The most expensive parts of the city are Santo Antónia, Misericórdia, Santa Maria Maio, and Avenidas Novas.

If you are moving to Lisbon with a family, then quieter neighborhoods include Santos, Lapa, Campo do Orique, Estrela, or Parque das Nações. Belém is also an excellent neighborhood to consider. Our article, Living in Lisbon: A Guide for foreigners, will give you a better idea of which are the best neighborhoods in Lisbon for families.

Lisbon is a very safe city, and you should find that almost all neighborhoods are pretty safe.

If you are just visiting Lisbon for a short time and are looking for the most central neighborhood, consider Baixa, Chiado, and Bairro Alto, which are all located close to the city center where you can quickly and easily get around the city. Whether you are looking for a short stay apartment,  a boutique hotel, or something else, Lisbon has several options.

Some of the best neighborhoods to stay are:

  • Alfama/Graça: The most bewitching, historic part of the city.
  • Avenida da Liberdade/Marquês de Pombal/Estefânia: The more fashionable parts of town.
  • Baixa/Chiado: The downtown shopping district with stunning river views, the Elevador de Santa Justa, Praça dom Pedro IV (Rossio Square), and Praça da Figueira.
  • Belém: A little outside the city, this picturesque suburb is a must to explore and a favorite with history lovers, the National Archeological Museum and the Torre de Belém located here.

If you have visited Lisbon, you’ll find that each neighborhood has its own unique style. Avenidas Novas, Campo de Ourique, Estrela, Principe Real, Alcântara, and Belém, and Restelo are some of the nicest neighborhoods in Lisbon. The nicest neighborhood for you will depend on what you are looking for in a neighborhood.

There are not really any Lisbon neighborhoods to avoid and there are few neighborhoods that are not charming in one way or another. However, if you do not like busy areas, Chiado may not be the best place for you as the streets become very busy during the summer months.

There are not really any Lisbon neighborhoods to avoid and there are few neighborhoods that are not charming in one way or another. However, if you do not like busy areas, Chiado may not be the best place for you as the streets become very busy during the summer months.

Santo Antónia, Misericórdia, Santa Maria Maio, and Avenidas Novas are the most expensive areas of Lisbon. Santa Maria Maior encompasses Baixa and Chiado, making these two of the most expensive neighborhoods in Lisbon to buy property.

Baixa and Chiado are two of the best neighborhoods to stay in Lisbon. They are considered the city’s “downtown” and are two of the best areas to stay in Lisbon if you want to be in the heart of the action.

Some of the best neighborhoods in Lisbon for young professionals and digital nomads include Alcântara, Anjos, Parque das Nações, Estrela, Intendente, and Mouraria.

If you’re seeking the best neighborhoods in Lisbon that offer a vibrant nightlife or sublime dining experiences, look into the Lisbon neighborhoods of Alfama, Baixa, Belém, Chiado, Bairro Alto, Príncipe Real, Alcântara, and Parque das Nações.

The outer neighborhoods of S Domingos de Benfica, Carnide, Beato, Penha de França and Santa Clara are the most affordable and best areas to stay in Lisbon for renters. According to Numbeo the rent for a one-bedroom apartment in the Lisbon city centre will cost about €1,299.38 per month while a one-bedroom apartment outside the city centre currently costs €910.67.

Baixa is a major transportation hub in Lisbon famous for its Rossio Square and the Rossio Train Station. Baixa also offers several tram and bus lines passing through the area and much like each city in Lisbon is easily accessible from other parts of the city.

The famous Avenida da Liberdade in the exclusive suburb of Santo António is the premier shopping destination in Lisbon for shoppers in search of designer clothing stores and luxury boutiques. 

The outer suburbs of Lisbon such as Benfica just north of Belém surround the Monsanto Forest Park (Parque Florestal Monsanto Lisbon) and are considered to be more family friendly areas that offer green spaces, parks and hiking trail as opposed to suburbs withing the Lisbon city center like Baixa and Bairro Alto which offer more authentic Portuguese nightlife and dining experiences in areas like Pink Street.