15 Best Neighborhoods in Lisbon: The Ultimate 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.

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 also has a Golden Visa, a residency-by-investment program that has attracted tens of thousands of foreign investors to the country. As of 7 October 2023, Portugal restructured its Golden Visa so it no longer includes real estate investments for new applicants. However, it is still a valuable opportunity for investors to become residents and eventually apply for European citizenship.

Average asking prices in Lisbon

What are the best neighborhoods in Lisbon?

Lisbon is split into several clearly distinguishable neighbourhoods. To get to grips with Portugal’s capital, you’ll need to spend time exploring each of these areas. The most traditional and popular neighborhoods are Baixa, Chiado, Bairro Alto, Alfama, and Belém, with the cost of buying a house in Lisbon varying significantly depending on your chosen neighborhood.

1. Alfama neighborhood in Lisbon

This district is in the heart of Lisbon and is famous for its narrow streets, Fado music, and the historic Lisbon Cathedral. The near-vertical hills are a struggle to climb, particularly in summer heat, but once you reach the top, you are rewarded with panoramic city views and flower-clad iron railings.

Alfama is hugely popular with tourists and short-term holiday rentals, as it is the old town and one of the main Lisbon tourist attractions.  You’ll find the stunning Castelo de São Jorge (São Jorge Castle) here, where you can enjoy breathtaking views of the city. The Castelo de São Jorge is also free for Lisbon residents. You will find Casa dos Bicos, a historic house and museum, and a key architectural attraction to visit.

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

Pros

• Traditional atmosphere with historic elements
• Strong sense of a community
• Stunning river viewpoints

Cons

• Very steep and difficult to walk
• Limited metro access

2. Graça neighborhood in Lisbon

Graça is perched next to Alfama and is one of the best neighborhoods to live in Lisbon. Despite being in the old town, a wave of young people is changing the landscape of this district. Graça is equally as beautiful as Alfama and has the same charming narrow streets but a more lived-in vibe.

As a hilly neighborhood, Graça offers some of the city’s most spectacular viewpoints. It maintains a genuine, working-class neighborhood feel despite its proximity to the center. It 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.

Pros

• Best city views from hilly streets
• Serene atmosphere
• Comfortable atmosphere

Cons

• Limited nightlife options
• Steep climbs

3. Ajuda neighborhood in Lisbon

Ajuda is slightly off the beaten track, to the city’s west. However, Ajuda is evolving to become one of the coolest neighborhoods in Lisbon and very close to the Ajuda National Palace.

A primarily residential area, it’s often an affordable option for longer stays. This part of town has an industrial feel, with old warehouses slowly being converted into hip bars and breweries, but the area still lacks some polish that one might be looking for if moving to Lisbon.

A real estate agent in Lisbon can provide a more detailed market analysis of all the neighborhoods in the area. The average price of property in Ajuda is €5,366 per square meter.

Pros

• Quieter and more residential
• Close to green spaces
• More affordable housing options

Cons

• Further away from tourist attractions
• Fewer shopping choices

4. 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, or Liberty Avenue, is one of Lisbon’s most famous boulevards. Here, you can find plenty of luxury boutiques, theaters, and grand hotels. It connects Praça dos Restauradores to Praça Marquês de Pombal. The area was inspired by Paris’s Champs-Élysées.

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.

Characterized by wide boulevards and modern buildings, this area is well-served by metro lines, making it a great base for exploring Lisbon.

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

Pros

• Excellent metro system with wide avenues
• Business and commercial center
• Great for shopping

Cons

• Lacks a historic charm
• Far away from river views

5. Campo de Ourique neighborhood in Lisbon

Campo de Ourique is one of the best neighborhoods to live in Lisbon. Situated up high on a quiet corner of town in a very nice family-oriented neighborhood, it is also one of the best neighborhoods to stay in Lisbon for expat families.

Lovely artisanal shops and a large indoor food market are some of the things that make this one of the nicest neighborhoods in Lisbon to live in. Known for its popular market, this area offers a nice mix of residential calm and local commerce. It’s a wonderful place for everyday life, the Portuguese food scene, and shopping.

Campo de Ourique provides quick access to the main parts of the city, and there are plenty of nice cafés. It is one of the most charming neighborhoods of Lisbon. Families also have access to the Redbridge International School.

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

Pros

• Great for families
• Famous local market and Central Park
• Village-like feel within the city

Cons

• Not directly on a main metro line
• Less exciting for tourists

6. Estrela neighborhood in Lisbon

Estrela is one of the most expensive neighborhoods in Lisbon. It offers a mix of history and modern convenience. This part of town has a genuinely warm and relaxing family atmosphere. From the Jardim de Estrela to the array of trendy hipster cafés, many people come to this part of Lisbon to spend their hours in one of the lovely coffee shops.

There is a more affluent population here, particularly younger professionals and wealthy expats who have relocated for work. If you are seeking some of the most spacious and best properties for sale in Lisbon, Estrela is a safe bet.

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

Pros

• Beautiful infrastructure
• High safety standards
• Upscale residential atmosphere

Cons

• Higher cost of living and property prices
• Limited public transport connections downtown

7. Principe Real neighborhood in Lisbon

Principe Real is one of the richest neighborhoods in Lisbon. 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.

Boasting 19th-century buildings, Príncipe Real offers grandeur, nobility, and charm, making it a sought-after choice for leisure, socializing, and relaxation. If you are looking to stay just for a little while, then you’ll find a quaint boutique hotel or luxury five-star hotel in this part of town, where you can easily get around the city and have stunning views of the River Tejo.

It’s easy to see why this trendy district is considered one of the best areas in Lisbon, Portugal. Principe Real is home to a mix of young internationals, nomads, and professional Portuguese families. Even Scarlet Johansson recently snapped up an apartment there.

The average property prices in Principe Real (in the Misericórdia neighborhood) are €7,895 per square meter.

Pros

• A sophisticated area with many designer boutiques
• Laid-back vibe
• Panoramic city views with high-end hotel options

Cons

• Very expensive for accommodation
• Some sections are difficult for walking

8. Alcântara neighborhood in Lisbon

Alcântara is one of the best place to stay in Lisbon. Once an industrial area, it’s now known for the trendy LX Factory. Its location near the river offers superb river views. Here, the famous 25 de Abril Bridge stands over the neighborhood.

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 traditional 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 the city’s neighborhoods, you’ll find spacious rooms and luxury apartments in Lisbon that are perfect for younger professionals, couples, families, and the like. The Lisbon International School is an excellent option for families in this area.

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

Pros

• Active nightlife
• Industrial and modern vibe
• Extensive public transportation

Cons

• Very noisy
• Further away from downtown areas

9. Belém and Restelo neighborhoods in Lisbon

Lisbon’s two neighborhoods of Belém and Restelo are the very last within the municipality of Lisbon. These historic neighborhoods along the Tagus River are home to the Jerónimos Monastery, which was originally built to celebrate Portugal’s Age of Discoveries.

They are filled with many of the city’s best museums and art galleries, as well as major sights, monuments, and various green spaces, offering a lot of things to do in Lisbon.

If you want to live a little bit out of the hustle and bustle of the city, then this is a great location for a romantic getaway. 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.

The average asking price in Belém is €6,757 per square meter.

Pros

• Iconic historic landmarks with Lisbon’s major sights
• Peaceful waterfront
• Large green parks

Cons

• Away from the central city nightlife
• Very crowded during the daytime

10. 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.

Lapa is home to grand embassy buildings, and many luxury hotels are now opening in the area, particularly in the Santos design district. The buildings are well-kept, and plenty of nice properties can be found here. Expats and entrepreneurs favor Santos and Lapa over many other areas.

The average property price in Lapa and Santos (both in the Estrela neighborhood) is €7,694 per square meter.

Pros

• Very safe and quiet
• Upscale area
• Traditional mansions and beautiful architecture

Cons

• Very expensive in Lapa
• Limited metro access in Lapa

11. Parque das Nações neighborhood in Lisbon

There are few neighborhoods in Europe as futuristic as Parque das Nações. This modern, redeveloped area from the 1998 World Expo features 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. The new development is the best area to stay in Lisbon for young professionals and working families.

This is one of the best neighborhoods in Lisbon for those seeking a modern part of the city. 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.

Pros

• Large green spaces
• Waterfront promenade
• Modern architecture

Cons

• Mainly a business center
• Lacks historic elements

12. Intendente and Mouraria neighborhoods in Lisbon

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 draws a young international crowd and has a mixture 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.

Pros

• Multicultural community
• Good value for local commerce
• Rapidly evolving

Cons

• Less polished infrastructure in some areas
• The area around the main center is noisy and crowded

13. Baixa and Rossio neighborhoods in Lisbon

Baixa is home to the iconic Rossio train station and is the ultimate central location. It is perfect for first-time visitors to the city, offering easy access to key attractions.

Baixa is the best neighborhood to stay in Lisbon if you want to live in the city center. It is near the nightlife center of Bairro Alto, the old town, Alfama, and Chiado, a key shopping area in the city.

You can quickly get to the beaches in Cascais and Carcavelos by taking a short train ride, and all the significant sightseeing locations are just a short walk away. If you are seeking Lisbon and the Lisbon Coast’s great golf courses, you’ll find many close to Cascais and Estoril.

One of the most famous things to try in Baixa is the ginjinha bars, 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 city’s rich history. The cost of living in Lisbon is relatively low, and public transport is cheap.

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

Pros

• The main commercial area of Lisbon’s downtown
• Very easy to walk
• Grand architecture

Cons

• Lacks a residential atmosphere
• Very crowded with tourists

14. Chiado neighborhood in Lisbon

Chiado is an elegant, cultural hotspot inside the city center. Accommodations here, from apartments to boutique hotels, are reflected in the high hotel prices. You’ll also find an array of excellent side streets and terraces.

Famous for its lovely cafes, many star attractions, and typical architecture, Chiado is a beautiful place to invest in if you are looking for luxury neighborhoods in Lisbon. While you’ll find busy winding streets in the summer, its convenient location makes it easy to get around the city center.

Shoppers will also delight in the range of shops, including chain stores, independent Portuguese, and upscale shops. Are you moving to Portugal with your family? If so, our Lisbon Neighborhoods Close to International Schools article may also interest you.

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

Pros

• Top-tier shopping experience
• Cultural hub
• Convenient location for work and travel

Cons

• Very crowded
• Expensive upscale real estate

15. Bairro Alto neighborhood in Lisbon

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.

Many visitors choose a four-star hotel near the district’s edge that offers a rooftop pool and easy access to all forms of public transportation.

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.

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

Pros

• Quiet by day and lively at night
• Packed with bars and restaurants
• Popular among the younger generation

Cons

• Not for light sleepers
• Very noisy

Choosing the Right Neighborhood in Lisbon

Overall, Lisbon offers a wide range of real estate investments. Some of the most popular neighborhoods are Alfama, Graça, and Ajuda, each with its own advantages and disadvantages.

If you are looking for the best neighborhoods in Lisbon for tourists, then Baixa and Rossio are the places to be. There are plenty of local attractions to see and entertainment venues to enjoy.

But, if you prefer luxury neighborhoods in Lisbon, then Príncipe Real, Estrela, and Lapa can hit the spot. They have some of the highest property prices, catering to wealthy investors.

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.