Porto vs Lisbon Property: Where should I buy real estate in Portugal?

When considering investments in Portugal, the discussion often focuses on two key contenders: Porto vs Lisbon property. Both cities present strong cases with their historic charm, coastal beauty, and increasing international appeal. However, the decision isn’t simply geographical as it depends on individual priorities. Are you looking for capital growth, rental returns, lifestyle benefits, or long-term value?

Lisbon, the capital of Portugal, has the highest property prices. This is due to consistent foreign demand, limited inventory, and prestigious neighborhoods like Príncipe Real and Lapa. In contrast, Porto has emerged as a rising star. It is more affordable, offers strong rental yields, and has seen significant infrastructure investment. Porto’s vibrant and creative atmosphere is particularly appealing to younger buyers and remote workers.

In this article, we’ll take a look at purchasing power, the average property prices in Lisbon vs Porto, factors you should consider before deciding between the cities, and what you’ll need to buy property in Porto or Lisbon.

You’ll also learn more about:

• Porto vs Lisbon property market overview
• Cost of living in Porto compared to Lisbon
• Are Porto and Lisbon good places to live?
• What are the most attractive neighborhoods in Lisbon in which to live?
• Lisbon vs Porto services and facilities

Lisbon vs Porto Property: Market Overview

As Portugal’s two largest cities, Lisbon and Porto dominate the national property conversation (the Algarve is also hugely popular with foreigners), offering a distinct value proposition shaped by market dynamics, foreign demand, and local government policy.

Even though the Portugal Golden Visa removed real estate as a qualifying criterion for residency by investment, both cities remain focal points for real estate investors, expats, and homebuyers. However, the experience and returns vary significantly depending on where you choose to buy.

While buying property Lisbon continues to lead in price and prestige, Porto is fast closing the gap with competitive pricing, rapid development, and growing international attention.

Lisbon property market

Lisbon remains Portugal’s most expensive and competitive property market. As of early 2025, the average property price in the city center is approximately €6,934 per square meter, with some prime districts exceeding €8,000 per square meter. The wider metropolitan area averages around €4,935 per square meter, indicating that price pressures continue even outside the urban core.

Luxury neighborhoods such as Avenida da Liberdade, Lapa, Príncipe Real, and Chiado are popular among high-net-worth individuals, often attracting international investors looking for prestigious assets or long-term lifestyle bases. These areas offer a combination of historic architecture, prestige, and proximity to embassies, international schools, and business centers.

The Lisbon property market is characterized by low inventory, particularly for turnkey properties. Regulatory constraints—especially the restrictions on new short-term rental licenses in central districts—have limited investment opportunities but have also contributed to stabilizing local housing policy.

Despite these challenges, foreign buyers, particularly Americans, French, and Brazilians, continue to represent a significant portion of transactions, as they often view Lisbon as a relatively affordable capital compared to other European cities.

Can foreigners buy property in Lisbon? Foreign buyers can freely buy property Lisbon, Porto and elsewhere in Portugal with no restrictions.

Porto property market

Porto property, historically known for its conservative pricing, has gained significant momentum. The city now plays a central role in the economic and cultural resurgence of northern Portugal, and its real estate market reflects this transformation.

By 2025, average property prices in central Porto are projected to range from €3,300 to €3,800 per square meter, which is considerably lower than prices in Lisbon. This makes real estate in Porto, Portugal, an attractive alternative for both investors and lifestyle buyers.

Emerging neighborhoods like Foz do Douro, Bonfim, and Cedofeita are undergoing significant changes driven by renovation projects, cultural initiatives, and growing interest from expatriates.

Foz do Douro, in particular, offers a unique blend of oceanfront living while remaining close to the city center. Meanwhile, Bonfim has become a hub for creatives and younger buyers who have been priced out of more traditional areas.

If you are considering buying property in Porto, you’ll find the city’s infrastructure to be evolving rapidly. Major investments in public transport, airport upgrades, and an expanding tech sector have increased demand, particularly in the commercial and hospitality markets.

By early 2025, northern Portugal—led by Porto—will account for nearly 67% of all commercial real estate investments, demonstrating the city’s transformation from a secondary market to a primary investment hub.

Factors such as affordability, growth potential, and a less saturated legal environment surrounding short-term rentals continue to make Porto an appealing destination, especially for first-time investors and buyers seeking long-term benefits.

Cost of Living in Porto Compared to Lisbon

Porto offers a significant advantage over Lisbon with its lower cost of living. Rent prices in Lisbon are about 35 percent higher than in Porto. Additionally, the cost of living, including rent, is close to 19 percent higher in Lisbon. You would need around €2.974 in Lisbon to maintain the same standard of living that you can have with €2.700 in Porto (assuming that you rent in both cities).

Differences in the property prices

In Lisbon’s Metropolitan Area, the average asking price for property was €4,935 per square meter  in 2024, while in the Porto Metropolitan Area, the average asking price was  €3,837 per square meter.

If you’re considering using your property to earn rental income, Lisbon is a more established and secure market. So, if you want better income security, choose Lisbon. The city attracts more international, cosmopolitan individuals who are more willing to pay higher rent amounts. Porto mainly focuses on the local market, but more international clients are starting to choose to settle in the city too.

Cost of living

Although living costs in Portugal has increased over the last decade, it is relatively low compared to other EU countries.

One of the main advantages Porto has over the capital city is its more affordable cost of living. Data from Numbeo shows that rental prices in Lisbon are about 33 percent higher compared to Porto, with the general cost of living (not including rent) being around 11 percent higher.

Are Porto and Lisbon good places to live?

Porto and Lisbon are excellent places to live or buy real estate. While Lisbon boasts a cosmopolitan vibe, where there is always something to get involved with, Porto offers a more community atmosphere.

The question of which city to choose depends fully on your personal lifestyle preferences. Both cities are great options, whether you are looking to work remotely, retire to Portugal, or relocate with family.

Climate: Both cities have sunny weather year-round, even though Porto has more rainy days. Portuguese winters are mild and summers are hot and dry. Did you know that Portugal has over 250 days of sunshine per year? It’s one of the sunniest countries in Europe!

Culture: Around every street corner in Porto, you’ll find enchanting cobblestone streets, brightly colored buildings, and traditional culinary gems. In Lisbon, you’ll find many parks, gardens, museums, cafes, and restaurants, as well as the city’s symbolic Tagus River and monuments. The capital city offers a blend of historical, traditional, and modern properties for sale.

Facilities: Both cities benefit from a state-of-the-art public health and education system, at roughly the same quality level as other European countries. There are 51 international schools in Portugal, mainly focused in Lisbon, Porto, and the Algarve (see our guide to Lisbon vs Algarve if you would like to compare these regions, too). If you are seeking to retire to Portugal’s second largest city, you will also find very good Porto retirement homes in and around the city.

Job opportunities: Portugal is a country with varied work and business opportunities for foreigners in practically all areas of employment. The country benefits from an open culture, which welcomes other nationalities. In fact, Portuguese companies are in a phase of digitization and expansion and need workers who speak other languages and have international experience.

Can expats get jobs in Porto and Lisbon?

An area in professional services that is open to expats and English speakers is the IT and software sectors. Currently, there are a huge number of jobs available for developers in Lisbon and Porto. The health, services, and creative workforce also receive expats very well. While Lisbon does tend to have more available jobs for exapts, you will still have some options in Porto.

Can you work remotely for a foreign company?

Portugal Digital Nomad Visa makes it easy for remote workers to relocate to Portugal.

What are the most attractive neighborhoods in Porto?

Porto, also known as the Invicta, or in English “The Invincible”, is a city with a lot of character. From the people to the wine, from the gastronomy to the culture, each part of Porto is unique and different. Below are some of the most attractive neighborhoods to live in Porto.

Ribeira, Miragaia and Baixa do Porto: The most recognizable and popular neighborhood in Porto is the Ribeira, an area filled with restaurants, cafés, and traditional housing along the Douro River. This is usually the first stop for visitors when they reach the city.

Cedofeita and Boavista: As a historic neighborhood in central Porto, this area surrounds the pedestrianized Rua de Cedofeita. The prices of rehabilitated apartments in the area start at €229.600 in state-of-the-art building projects such as Cedofeita 630, a 19th-century building rehabilitation development.

Foz do Douro: If you take a trip to the affluent suburb of Foz do Douro, the modern homes with sea views could make you think you’re in another city altogether. Foz is popular for this very reason, offering some respite from the chaos of the city. It can be a good choice for families due to enhanced parking options and more spacious properties.

Bonfim and Campanhã: Bonfim and Campanhã are two parishes in downtown Porto that have reinvented themselves in recent years and are now the trendiest places to buy a property in Porto.

What are the most attractive neighborhoods in Lisbon to live in?

Lisbon is one of the most beautiful cities in the world. With a unique golden light, warm summers and mild winters, friendly people, heritage, a booming housing market, and excellent opportunities to buy a property, Lisbon is almost perfect.

Below are some of the neighborhoods where you can find the best properties for sale in Lisbon.

Bairro Alto: Bairro Alto is Lisbon’s bohemian landmark. It is a hotspot where bars, alternative shops, fado, cheap beer, avant-garde events, and alternative multicultural and urban scenes converge. You go to the Bairro Alto for dinner — one of the country’s best places for that — and then go out at night for drinks, or alternatively, explore all of Bairro Alto’s quirky shops during the day.

However, it is not a good place to live because it’s quite noisy and jam-packed with visitors. Keep in mind that Bairro Alto can still be a good investment opportunity to buy property for local accommodation.

Lapa and Santos: Lapa is one of the most high-profile areas in Lisbon. Perfect for families, it is a quiet area with excellent accessibility to Lisbon’s center, either by car or public transportation. Lapa has many green areas and schools, hospitals, restaurants — even embassies — and monuments. Many beautiful beaches are very close to the area. It may be a little too posh for some, but perfect for others.

Santos’ district is for the hipsters. It is Lisbon’s Design District, where the most innovation happens. Startups, timeout events, nightlife, shops, restaurants, and an exciting social lifestyle make this one of the most lively areas of Lisbon.

Avenidas Novas: Avenidas Novas is one of the main business centers in Lisbon. Always super busy, the area is perfect for urban business people. It is a good area for buying property for offices and businesses. The average asking price for property was €8,377/sqm in 2024.

Intendente and Mouraria: Intendente and Mouraria are characterized by a powerful mix of sounds, flavors, and cultures. With a decadent twist, Intendente and Mouraria are very central and multicultural. These districts are also very popular in the housing market for local accommodation.

Campo de Ourique: With average asking prices standing at €6,974/sqm in 2024, Campo de Ourique continues to be one of the best places for neighborhood life, with an extensive catalog of shops and restaurants, hairdressers, pastry shops, and cafes that feed the lives of families who live there and the neighborhood’s usual visitors. Note: don’t bring your car, you won’t find any parking.

Alfama and Graça: The best balconies with startling views of the Tagus River or Lisbon’s medieval alleys are found here and, probably, the most photographed too. There are tuk-tuks and exciting neighborhood life, from tascas or taverns — the best places to eat — to mini-markets.

Belém, Ajuda, and Restelo: These areas are true cultural epicenters, a kind of museum city ready to be explored. Here, there are coaches, contemporary art, good food, and lots of flora to explore.

Parque das Nações: Parque das Nações is one of the main business centers in Lisbon, but is also a part of the culture and nightlife of Lisbon. With many restaurants, bars, and shops, a Casino, the FIL fair, and the Altice Arena, it is a good place to buy property, with the average asking price standing at €8,517/sqm in 2024.

Lisbon vs Porto Service and Facilities

Transportation

Lisbon and Porto are the only cities in Portugal with metro rail systems. These systems are modern and efficient and serve as the backbone of urban public transportation, connecting neighborhoods, suburbs, key landmarks, international airports, and transport hubs.

The Lisbon Metro features four distinct color-coded lines: Blue, Yellow, Green, and Red. This efficient transit system covers a significant portion of central Lisbon, including key business districts and residential neighborhoods. Notable destinations accessible via the Metro include Baixa-Chiado, Marquês de Pombal, Parque das Nações (Expo), and Lisbon International Airport.

The Porto metro system consists of six lines (A–F) that are interconnected through a central underground corridor. It offers extensive coverage throughout downtown Porto, reaching into the suburbs and neighboring cities such as Vila Nova de Gaia and Matosinhos.

Key destinations include Trindade, Casa da Música, Estádio do Dragão, São Bento, and Porto Airport. Specifically, Line E (Purple) provides a direct connection from Porto Airport to the city center.

Trindade serves as the main hub, functioning as a central interchange for all metro lines as well as key connections to CP suburban trains. Additionally, Campanhã Station is a significant CP train station accessible via the metro, offering connections to Alfa Pendular and Intercidades trains.

Coworking Spaces

Coworking spaces in Portugal are becoming quite popular, but they mainly exist in big cities. Lisbon is home to the world’s largest digital nomad community with regular meet-ups and co-working spaces popping up all over the city to accommodate the influx of freelancers and startup companies. There are over 50 co-working spaces available, catering for freelancers, startups, and small businesses in Lisbon.

Cafe Culture

Cafes, especially esplanades, are part of the Portuguese identity and proliferate in large cities. The most popular coffee specialty is a short and strong Italian style espresso. In Lisbon, this delicacy is called bica, and in Porto, it is known as cimbalino.

The galão is another specialty of Portuguese people: coffee with milk. These are usually accompanied by a cake — Portuguese pastries are another interesting area to explore for those who are not counting their calories. Almost all cafes have free internet in major cities, and some are in beautiful parks or near spectacular street art.

Old coffee shops are also on the list of cool places to visit in both cities, from the A Brasileira in Lisbon to the Majestic in Porto.

Healthcare

The hospital network in Portugal consists of modern units that are well-equipped throughout the country. An integrated medical emergency system provides care for anyone who is injured in an accident or who suddenly becomes ill.

The World Health Report published by the World Health Organization (WHO) ranks the Portuguese health system in 12th place. CUF, Lusiadas, Hospital da Luz, and Cruz Vermelha are private hospitals that are both present in Lisbon and Porto and are well known for providing excellent quality of care in the country.

Beaches

Lisbon isn’t technically a coastal city, but it is well-connected to some of Portugal’s most popular beaches. A short train ride from Cais do Sodré will take you to Cascais, Estoril, or Carcavelos, all of which offer golden sand, surf schools, and beach bars.

South of the river, Costa da Caparica stretches for miles and caters to a younger, more relaxed crowd. The coastline here has a Mediterranean feel—sun-soaked, developed, and well-serviced.

Porto, on the other hand, is located directly on the Atlantic Ocean and boasts its own urban culture with some of the best beaches. In less than 20 minutes by metro or car, you can reach Matosinhos, Porto’s closest beach, which is known for its surfable waves and seafood restaurants.

A little further away, Foz do Douro offers scenic walking paths, beach cafés, and stunning sunset views, but its beaches are rockier and the water is colder. The Atlantic here has a rougher, windier character and is less manicured, yet it remains equally charming.

Nightlife

Lisbon’s nightlife is diverse, polished, and vibrant. The city offers a range of experiences, from upscale cocktail bars in Chiado and rooftop lounges in Bairro Alto to all-night clubs by the Tagus River in Cais do Sodré, catering to various tastes. You’ll commonly find international DJs, curated mixology menus, and spacious venues. Nightlife in Lisbon typically starts late and continues into the early morning hours.

In contrast, Porto’s nightlife is more intimate and character-focused. Centered around Rua Galeria de Paris and the Ribeira district, Porto presents an edgier mix of indie bars, underground clubs, and live music venues.

Here, the emphasis is on atmosphere rather than scale, with craft beer, vinyl sets, and smaller venues filled with locals and students. You’ll encounter fewer dress codes and a greater sense of authenticity.

Portugal Real Estate: Something For Every Taste

Portugal real estate has something for everyone, but Lisbon and Porto are two of the most sought-after locations. Both a Lisbon real estate investment or a Porto real estate investment can prove to be incredibly profitable.

If you are considering buying property in Portugal, seek help from a real estate agent in Porto or Lisbon, or even better, a specialized purchase property investment firm such as Goldcrest. As an independent local buyers’ agent, Goldcrest helps international families acquire sound property investments in their desired locations in Portugal.

They will help you fulfil your property goals and discuss your options. For example, Lisbon’s higher property prices could yield higher returns, but Porto’s lower entry point could make the properties more accessible.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.