The Ultimate Guide to the Best Neighborhoods in Lisbon

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?

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 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

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 cool neighborhoods in Lisbon?

Anjos

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 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.

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.