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Portugal

Best Neighbourhoods in Lisbon for Investors

Updated: 26 April 2022

Portugal’s lucrative investment prospects and lush cultural heritage make Lisbon one of the most favored cities to live in. This is why many investors and prospective residents ask the following questions: What are the best neighborhoods in Lisbon? Here is a Lisbon best neighborhoods guide to help you out with that.

Lisbon Best Neighborhoods

There are many neighborhood options to explore in Lisbon, whether you wish to live close to the major attractions or enjoy some peace in the city’s surrounding suburbs. There’s something for everyone, from bustling commercial areas and vibrant nightlife hubs to gorgeous coastal towns.

This Lisbon neighborhood guide has included the list of best neighborhoods to invest in Lisbon. 

This article includes information on the following neighborhoods:

  1. Graça
  2. Chiado
  3. Avenidas Novas
  4. Alcantara
  5. Baixa
  6. Bairro Alto
  7. Alfama
  8. Principe Real
  9. Santos
  10. Parque das Nações

1. Graça

If you are looking for the best areas to live in Lisbon, Graça can be a good consideration. The working-class neighborhoods of Graça are a hundred-year-old monument of the area’s past. Graça was once a quiet quartier of the working class, but now its beautiful restaurants, belvederes, and gazebos attract people. Vila Berta and Estrela d’Ouro from 1908 and Vila Souza from 1890 are still living embodiments of that era.

Moreover, Graça is also among the safest neighborhoods in Lisbon because of its excellent administration and strict rules and regulations. At the beginning of the 1900s, train transportation became more popular, and people from the rural side of Portugal came to bigger cities like Porto and Lisbon to find jobs and survive. However, the place to live for them was an issue. So, the authorities came up with a solution and provided them with these villages. These “Vilas Operárias” are now one of the main attractions of Graça.

Pros

  • Spectacular views 
  • Old-town charm

Cons

  • Lack of green space
  • Parking can be an issue

2. Chiado

Rua do Ouro and Rua Augusta are parallel to each other, and halfway down them, there is the Santa Justa Elevator. This elevator brings its travelers to Largo do Carmo, where Portugal’s Carnation Revolution of 25 April 1974. A convent is roofless and is appropriately a sky observatory. Finally, the neighborhood of Chiado presents itself and drops it among the best places to live in Lisbon or around Lisbon.

Famous for its many cafes, probably the most popular attraction of Chiado is the bronze statue of Fernando Pessoa sitting at a table next to an empty seat. Tourists often take photographs with the famous literary figure Fernando Pessoa sitting next to his embodiment. However, with its impressive gastronomic diversity, Chiado is more than just a tourist destination; it is one of the best neighborhoods to live in Lisbon.

Pros

  • Very central
  • Lots of activities

Cons

  • Touristy

3. Avenidas Novas

Avenidas Novas constitutes one of the largest residential zones in Lisbon. A good network of public services and public transportation spread throughout the area. Also, the site bifurcates into several districts with their features because of its size. One of the districts inside the Avenidas Novas is Bairro Azul.

Bairro Azul is relatively small but offers many services and amenities. It is near the El Corte Ingles store. Other districts that comprise Avenidas Novas are Saldanha/Avenida da República residential zone and Alvalade/Avenida de Roma which flashes its traditional and dynamic lifestyle. With its vast area and award-winning villas, Avenidas Novas is a good neighborhood involving a variety of attractions making it one of the best areas to live in Lisbon.

Pros

  • Parks
  • Local life

Cons

  • Lack of active social life

4. Alcantara

Alcantara is one of the best neighborhoods to live in Lisbon. It’s the place where the famous Tagus River flows, and the 25 de Abril Bridge stands over it. Alcantara Docks and especially Doca de Santo Amaro which draws the weekend and evening crowds to its restaurants and bars decorated in old warehouses, constitute a big part of the attractions of Alcantara. Split by train tracks, Alcantara has another side with residential buildings. 

LX Factory, an industrial site before, now hosts many artists’ studios and shops, restaurants, and performance spaces. On top resides the Monsanto Forest Park, which protects the city from air pollution and always welcomes fellow trekkers.

Pros

  • Local life
  • Good restaurants

Cons

  • Far from the center

5. Baixa

After its decimation in one of the most historical earthquakes in the 18th century, Baixa was rebuilt to suit the European city planning trend. With what remained and built after, the city’s architecture wafts off a certain neoclassical ambiance. Its unique, checkered, yet exciting culture and heritage make it one of the best neighborhoods in Lisbon to live in.

What makes the city ideal for investing in property is its strategic placement. The city is within walking distance of one of the most significant sightseeing locations such as Castelo, Bairro Alto, and Alfama. 

If you are in Baixa, you can find many fun activities to participate in, like ginjinha bars. The ginjinha bars are a must-try-out for their sour-cherry liquor. You can find yourself indulged in the Lisbon Story Center. It’s an interactive museum where you can read and research Lisbon’s intriguing history. There are some beautiful architectures that one must not miss out on – Rua Augusta Arch and Praça do Comércio. These qualities make Baixa one of the best places to live in Lisbon.

Pros

  • Very central
  • Bustling life

Cons

  • Crowded

6. Bairro Alto

Besides a myriad of architectures, exciting cultures, and a varied variety of savory food, Bairro Alto has a lot to offer. Nightlife in this neighborhood is splendid. For the same reason, the city houses some of the best restaurants in the city. Cais do Sodré is one of the most lively places in the city. This bar street brims with people during weekends and never loses its spirit on any other day. Bairro Alto scores the top among the best neighborhoods in Lisbon which provides an amazing living experience.

Bairro Alto’s topography is a little inconvenient as it comprises hills. So if you are looking to explore this landscape, you might want to invest in a car.

Another reason for counting Bairro Alto among the best areas in Lisbon is that the Parque das Nações’s pesky shops keep shopping enthusiasts in spirit year-round. 

Pros

  • A lot of attractions

Cons

  • Noisy

7. Alfama

Drenched in a dusky sunlight, glimmering terraces, and terracotta rooftops, you’ll find Alfama to be the best viewpoint in Lisbon. The most attractive feature of this neighborhood is its historical value. Its romantic landscape is sought out by tourists, business people, and digital nomads worldwide, making it one of the best neighborhoods Lisbon offers. 

It is also popular for its labyrinthine cobblestone streets that can keep one wandering and entertain for a long time. Almost every frame of the place your eye can catch is picturesque.

All architecture, old and new, is in line with the neighborhood’s aesthetic culture. It’s also one of the safest neighborhoods in Lisbon.

If you are keen on learning and understanding Portuguese culture and heritage, visit Museu do Fado and the Museu do Aljube Resistência e Liberdade. The neighborhood is teeming with traditional tascas where you can dine out and enjoy performances by fado singers. To get a good city view, consider visiting Santa Luzia, Castelo de São Jorge and Portas do Sol.

Pros 

  • Historic landmarks

Cons

  • Public transportation

8. Principe Real

Just a short walk from Bairro Alto, Principe Real is one of Lisbon’s best neighborhoods. This neighborhood provides relief from the tourist crowd and is a pantheon for ambient restaurants, trendy coffee shops, and satiating shopping complexes. In addition, the beautiful Avenida da Liberdade connects this neighborhood to Lisbon’s all significant locations. That’s why it’s often the name people take while referring to the right investing areas of Lisbon.

If you are in Principe Real, you must visit the Portuguese designer boutiques in Embaixada Mall. You can also see the viewpoint of São Pedro de Alcântara for a pristine Lisbon view. For coffee aficionados, Praça das Flores in Principe Real has some of the best coffee houses with exotic flavors. The neighborhood has one of Lisbon’s most stunning botanical gardens, pitch-perfect for nature lovers. The culmination of the above points makes Principe Real one of the best neighborhoods in Lisbon to live in.

Pros

  • Very central

Cons

  • Expensive properties

9. Santos

Santos is one of Lisbon’s oldest and most expensive districts and is situated on the lower slopes of the hill, which is topped by the Estrela neighborhood. In the 18th century, it was home to upper-class homes, but today it is largely known for pubs and clubs that cater to college students and teenagers, as well as home décor shops and design and architectural schools.

If you decide to make an investment in Santos, one of the main attractions you can visit is the Ancient Art Museum. This museum serves as the country’s “national gallery,” housing artifacts from the 12th to the 19th centuries from Portugal and other European countries.

Pros

  • Local life

Cons

  • Expensive properties

10. Parque das Nações

Parque das Nações, is the perfect choice for families. You can find the neighborhood connected to all the significant locations in Lisbon. Most of those locations are accessible through a train ride. Urban Park makes the place a niche location for children. However, the most influencing factors are Pavilhão do Conhecimento, an immersive museum of science for kids and grownups, and the Oceanário, one of the largest aquariums in Europe.

The neighborhood’s spectacular collection of various restaurants, coffee shops, and shopping malls makes it for families to plan their days easily. Nearby grocery and food shops also contribute to a wholesome family atmosphere, bringing the place among the right investing areas of Lisbon.

Pros

  • Parks

Cons

  • Lack of community vibe

Best Neighborhoods Lisbon: The Bottom Line

Portugal’s steady and healthy economy lures financial interest worldwide, and the country reaps its benefits. Portugal Golden Visa program gets more popular and international investors show more interest in the Lisbon real estate market. As a result, properties for sale in the best areas in Lisbon continue to increase their market value.

We hope that our guide on the best neighborhoods to invest in Lisbon has helped you to have a better understanding of the city’s best locations. Good luck with your search.

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