Where to live is among one the first and major decisions you have to make when arriving in a new city. In a safe, beautiful and rather contained place like Lisbon, it is hard to go wrong. However, each neighbourhood has its own aura and finding the one that better suits your lifestyle is the most effective way to quickly feel at home. This article is a great starting point for you to better understand what different areas in Lisbon have to offer before searching for your new property.
Best Areas in Lisbon, Portugal: How to Choose
Portugal’s capital, Lisbon, is the most populated area in the country. Luckily, that does not necessarily mean that you will always find yourself surrounded by crowds of locals and tourists, as there are many neighbourhoods in the city that are very spacious and quiet. When trying to discover what are the best neighbourhoods in Lisbon, we suggest that, after you check out the characteristics of each region, you do some soul searching to figure out which speaks to you the most. Do not just take into consideration the similarities to where you live now, but also think about what you desire for your near future. Remember that moving from one city to another is a great way to pursue a new lifestyle, that might be more in line with the one you wish to have.
The next step is to start searching for property. In historic cities like Lisbon, the area you decide to live in will, most likely, influence the type of property you will most easily find. The city centre, for example, will not offer options for big, detached houses. If having that kind of space is more important to you than to be close to some of Lisbon’s main attractions, then it is better to turn your attention someplace else.
At the end of the day, choosing where you want to live is a mix of knowing what each corner of your new city has to offer and checking that against what is more important to you in this next chapter of your life.
Central Lisbon – Best to Be in the Centre of All Things Fun
Baixa
Baixa is equivalent to “downtown”, both in the sense that it is located towards the south part of the city, and that this is the city centre. If you want to really feel what Lisbon is all about, this is the place to be.
The Baixa area is where you will find countless cafés, restaurants, shops and also some of the most famous tourist attractions such as the shopping street Rua Augusta and the huge Commerce Square. The neighbourhoods of Chiado, considered to be Lisbon’s Montmartre, and Rossio are in this area and are equally central and full of options.
Living here means always having people and activities around, stepping daily into the traditional Portuguese cobbled-stoned pavements, walking into narrow streets and seeing Lisbon’s classic tiles on a daily basis.
In Baixa, it is almost guaranteed that you will live at an apartment as houses for sale in this neighbourhood are rare. Still, as this is one of the most sought-after areas in the city, you can find beautiful fully renovated units that will perfectly blend historical charm and modern living.
Príncipe Real
If you want to be centrally located but in a less crowded area, Príncipe Real is a good option. This is not an empty neighbourhood, far from that, but it is less disputed than Baixa. Around this area there are great restaurants, many bars, unique shops and a beautiful Botanical Garden. It is also a very fashionable place with a royal feel to it – its name literally means Royal Prince – and a nice mix of residential area with a bustling social atmosphere.
Although there are some amazing mansions in Príncipe Real, it is more likely that you will find a great refurbished apartment, maybe even with a nice balcony.
Bairro Alto
If you are all about the nightlife, Bairro Alto is the liveliest of all Lisbon neighbourhoods, perfect to enjoy a drink around friends. In its narrows hills you will find more bars than you can count, as well as small charming tascas – or eateries. Some spots in Bairro Alto offer amazing views, like the famous Miradouro de São Pedro de Alcântara that, in June, hosts part of the Santos Populares Festivity. Also, this where you will find yourself in after hopping off from the Elevador da Glória funicular, if you are coming from Baixa.
Again, Bairro Alto will offer mainly cozy apartments in very traditional buildings.
Avenida da Liberdade
Considered to be the Champs Elysée of Lisbon, Avenida da Liberdade and its surroundings, are some of the most luxurious areas in the city. While the Avenue itself is the Portuguese chosen address of some of the most iconic high fashion brands in the world, and one of the best shopping areas in town, the streets crossing it are full of cute restaurants and some of the most valuable properties of the capital. For all that, this is considered to be one of the best areas in Lisbon.
Going straight in one direction will lead you to Marquês do Pombal, and the beautiful Eduardo VII Park, one of the best in Lisbon, right behind it. If you choose the other way, a short walk will take you to the iconic Rossio Square. Keep going and, in a couple more minutes you will find yourself in the grand Commerce Square, facing the Tagus River.
Avenida da Liberdade is where Portugal Homes is located and we can assure you that, in here, properties are bound to have a special appeal, with great finishes to stand up to the high-end fell of the region.
Alfama
Going up from Figueira Square, you will find the oldest of all Lisbon’s districts, and the only one that stood to the massive earthquake that destroyed the city in 1755: Alfama.
Narrow hills, remaining sky decorations from the Santos Populares Festivities and a feeling of being transported to another time, maybe even in a small village, is what this area is known for. In Alfama, you will find many residential buildings surrounding some of the most important attractions in Lisbon, such as the Sé Church, the Santa Luzia Viewpoint and the Elétrico 28 (a specific line of the cable car system, famous exactly because it passes by many spots visitors love to see), leading up to Saint George’s Castle.
Moving to Alfama probably means living at an apartment, situated on a hill. In turn, there are chances you will have some amazing views right from your window and for sure a true taste of Lisbon at your doorstep.
Graça
At the other side of Saint George’s Castle you will find Graça, another very traditional part of Lisbon. The vibe is very similar to Alfama, in a sense that you call feel the Portuguese soul in its streets. In this picturesque neighbourhood, you will see locals and visitors blending in between a colourful atmosphere. Graça also has some great viewpoints that will give you breathtaking sights of the lower part of Lisbon, and all its red rooftops, as well as of the huge and sea-like Tagus River.
With many more open and wide areas than Alfama, Graça offers a variety of properties that may even have a lovely backyard.
North and Northeast of Lisbon – Best for Business and Modernity
Parque das Nações
The newest neighbourhood in the city, revitalised in 1998 to be the host of the 1998 world fair called Expo 98, is now a great combination of a business centre and a modern residential area. Although not so close to the city centre, its riverside location, at the northeast of the city, and also very close to the Airport, makes Parque das Nações a very well-situated place.
This is where you will finally see some skyscrapers, but you will also see a lot of trees, parks and beautiful streets. Somehow, this is a place that managed to keep a cool laidback vibe, even though it is the address of many big companies. Parque das Nações is also home to the beautiful and big Lisbon Aquarium (Oceanarium), the Oriente transport complex, designed by the world-renowned Santiago Calatrava, and to great amenities such as restaurants and hotels.
If you choose Parque das Nações, you may find some houses if you go north or big, spacious apartments that will almost certainly feature a balcony, perhaps even with stanning views of the river and the amazingly large Vasco da Gama Bridge.
Avenida Novas
The surroundings of Avenida da República, known as Avenidas Novas, encompasses areas such as Saldanha and Campo Pequeno, and will offer more of a modern and cosmopolitan feel, without completely losing the residential appeal. This is where you will find a mix of offices, universities, restaurants, hotels and shops in between apartment buildings.
If you go all the way to Campo Grande, you will find a large park with a beautiful artificial lake on the way. On the other direction, there is the Gulbenkian Foundation, a museum with a garden that is open to passersby.
Avenidas Novas’ listings offer will feature big, completely refurbished and modern apartments, as well as some more traditional – while also renovated – ones.
East Lisbon – Best for Living in a Multicultural Scene
Arroios, Anjos and Intendente
Those tree neighbourhoods are located close together and are very similar in their characteristics. They form a vibrant area of Lisbon, with a strong commerce scene, along Avenida Almirante Reis, the avenue that connects them.
The main thing you can notice about this part of the city is that it is very multicultural, with many ethnic groups blending in. As a result, you will find many different cuisines in that area such as Middle Eastern, Asian and Brazilian.
Listing offerings in Arroios, Intendente and Anjos are often made of apartments located in buildings with tiled facades and small but lovely balconies surrounded by black iron fences.
West Lisbon – Best for Living Close to Nature
Campo de Ourique
This charming neighbourhood has a very cozy and trendy atmosphere to it, with unique and cute shops, famous brunch spots, and a main squared filled with trees and surrounded by cool restaurants.
Campo do Ourique holds that traditional essence of having everything you need within walking distance, with a great and diverse offer of places to go and things to do concentrated in a small area. It is also very close to the Estrela Garden, a great green space for families, and has a very lively covered street market, where you can buy fresh produce and then enjoy its modern and lovely food courtyard.
Many properties in Campo do Ourique are renovated in such a manner that an ancient charm can still be seen, but with no compromise when it comes to amenities.
Belém
Even if, so far you have only searched for neighbourhoods to stay in Lisbon, you have probably heard of Belém, as it is home to the most popular pastry shop in the country: Pastéis de Belém. However, this is also a pleasant place to live in, especially for those who love being close to the water, as it has the Tagus River as one of its limits.
Belém is also where you will find many of Lisbon's postcards such as Torre de Belém, Padrão dos Descobrimentos, Jerónimos Monastery and a great view of the 25 de Abril Bridge. Do you like cultural facilities and events? Then this is a great candidate as withing a few meters you can find de modern MAAT Museum, the Belém Cultural Centre and the National Coach Museum, just to name a few.
Belém also offers a wide range of properties, including spacious houses, with even some new developments starting to bring a fresh feel to the area.
Santos
Officially named Santos-o-Velho (or Santos-the-Old), this neighbourhood is home to IADE (Lisbon’s Institute of Visual Arts, Marketing, and Design) and, for that reason, it is known as the design district of the city, offering an array of decor shops.
As the name estates, this is an older area, with many traditional – and mesmerising - tiled facades. However, Santos is not just about beauty and design. It is also where the Portuguese Parliament is located and a place with a variety of museums such as the Museum of Puppetry and the National Ancient Art Museum, or MNAA.
In the Santos district, you will find large apartments that will make the most of the sunlight and the river views.
Surroundings of Lisbon – Best to Extend Your Possibilities
If you want to enjoy nature even further, a short drive or train ride can lead you to areas that are just outside of Lisbon, but close enough that you can live there, even if you need to go to the capital regularly.
Cascais
This perfect coastal resort area offers that great seaside lifestyle with the privilege of being only 20 minutes away from Lisbon. The beach truly sets the tone to this popular destination, with a Marina that not only stores boats, yachts and sailboats, but also offers interesting food, shopping and service venues.
Seafood restaurants are plentiful and there are many spots with breathtaking views of the Atlantic Ocean such as Boca do Inferno and the surroundings of the Santa Maria Lighthouse. The city centre is small, charming and filled with things to see and do.
If you fell in love with Cascais, you can either find a nice apartment or even a big house, depending on your budget. Keep in mind that this is a very sough-after area.
South Bay
If you are willing to cross the bridge, you can still have the beach right next to you in a more affordable manner. The South Bay, or Margem Sul, is a big area that has a long stretch of wide sanded beaches, but also a great range of cities such as Alcochete, Almada, Barreiro, Moita, Montijo, e Seixal.
Although it is easy to reach Lisbon either by car, bus, train or boat, rush hours make that task a time consuming one. Therefore, having a property in South Bay is more advantageous if the goal is to either have it as a holiday destination or if you do not need to be in Lisbon on a daily basis.
Apartment, houses, plots of land...depending on the city you choose in the South Bay area, you will be able to find an amazing range of possibilities.
Sintra
To the northwest of Lisbon, you will find a region that beans with nature and history: Sintra, an UNESCO World Heritage site.
This lovely town has a whimsical feel to it, with beautiful palaces and magical properties nestled within a green mountain side, such as Palácio da Pena and Quinta da Regaleira. You can also walk in the remains of the Moorish Castle or feast your eyes on the exotic architecture of the Monserrate Palace.
Living in Sintra, means having a more slow-paced life with access to a wide range of properties of all styles and sizes.
The Best Neighbourhoods in Lisbon Are Those That Are Best for You
Portugal’s capital has many different areas, each providing a distinct lifestyle. What they all have in common is that wherever you go in the city, you will be able to enjoy safety, nice views, complete infrastructure and a good offering of transportation options. It is no wonder that Lisbon is among the best cities in Europe for a Real Estate investment.
The point, at the end of the day, is choosing the neighbourhood that will best attend your present and future needs, both in terms of its atmosphere and services as well as in what type of property you will most likely find in that location.
The best way to discover that would be, of course, to spend one week on two in the city, visiting each area and maybe even some houses and apartments. When this is not possible, counting on trusted local experts like the ones we have here at Portugal Homes is a great way of making an educated decision.
Read more:
Lisbon is Among the Best for Real Estate Investments in Europe
The Best Places to Live in Portugal
Buying Property in Portugal as a Foreigner in 2025: The Ultimate Guide
