Portugal’s capital city, Lisbon is considered by many to be an exceptional place to live. With incredible weather all year round, low crime rates, simple immigration policies, and a laid-back lifestyle, Lisbon is a vibrant city with all the natural comforts of home. If you’re considering a move, here are the best neighborhoods to live in Lisbon.

Living in Lisbon

Lisbon reigns supreme when it comes to quality of life. The job market is growing every day, and the cost of living is more than fair. Lisbon has an excellent public transportation system, and world-class medical facilities, and is in close proximity to other Portuguese destinations, like Porto, all along the breathtaking Silver Coast.

In the 1970s, many Lisbon locals moved out to the suburbs, leaving homes in the city centre relatively empty. Since then, those homes have been renovated and are now available for foreigners at a fraction of what they would pay in their home countries. Add in the incredible food, cultural diversity, and a welcoming community, and you’ve got a recipe for a life well lived in one of Portugal’s most beautiful cities.

Best Neighborhoods to Live in Lisbon

There is so much about Lisbon to love that it’s hard to go wrong when picking out your future neighborhood. But each one has a little something different to offer, with its own personality and overall vibe. Depending on what you’re looking for, you may feel called to certain neighborhoods more than others. We’ve compiled all the details you need to know about neighborhoods in Lisbon so you can find the right one for you. Wherever you end up in Lisbon, you are sure to feel welcomed and—most importantly—at home.

Alfama and Graça

Considered to be the “Heart of Lisbon,” Alfama and Graça is a neighborhood rich in history and a warm, welcoming community. Made up of zig-zagging medieval streets, Alfama and Graça feels like walking through the Lisbon of days past, where neighbors say hello and time moves more slowly.

Home of the traditional music genre, Fado, Alfama and Graça embodies the soul of Lisbon, and to this day is still filled with working-class families whose heritage goes back decades. Newcomers looking for a small-town vibe would feel right at home in this neighborhood and can find fairly good deals on newly renovated housing. Most places in Alfama and Graça come with excellent views of the river and, most likely, a friendly neighbor.

Avenidas Novas

Avenidas Novas is one of the best neighborhoods for ex-pats. Although property prices are on the higher spectrum, the public transportation access is top-notch, and the vibe isn’t the least bit touristy. Filled with families, the neighborhood boasts great schools, varied shopping options, and all the modern amenities you would expect from a trendy community on the rise.

Although some visitors might claim that the neighborhood lacks atmosphere, it does have a few historic buildings hidden amongst the more modern office buildings. It definitely doesn’t have the same old-world charm as Alfama and Graça, but for those looking for a more modern take on this Portuguese city, Avenidas Novas is the place. And with such easy public transportation, it’s quite simple to get to other historic parts of the city.

Bairro Alto

The Bairro Alto neighborhood is all about the nightlife scene. Known as Lisbon’s party district, the neighborhood is deserted during the day but comes alive at night. A bohemian community of locals and immigrants alike love this neighborhood because of the relaxed, c’est la vie lifestyle. Located right in the heart of Lisbon, Bairro Alto has so much to offer when it comes to restaurants, bars, and nightclubs.

During the daylight hours, however, guests will find that Bairro Alto is more than just nightlife. With an abundance of art and history, the neighborhood is a very unique Lisbon experience. The street art speaks for itself, encompassing everything that this vibrant community is about. With incredible views from the Miradouro São Pedro de Alcântara and baroque interiors of Igreja de São Roque, Barrio Alto offers a different perspective on the city, with some form of entertainment at any time of day.

Benfica

Located on the outskirts of Lisbon, Benfica is the ideal neighborhood to get away from the big city bustle and take in the natural landscape. With a dedication to preservation and a slower-paced lifestyle, Benfica is a community that knows how to savor the little things in life. Although it’s further outside the city, residents claim that you can find everything you need in Benfica. Great restaurants, supermarkets, and shopping centers are all nearby, and getting into the city centre isn’t too difficult. Destinations like Cascais or Sintra National Park are only 30 minutes away by car.

Benfica hasn’t been hit too hard with touristy influences and it remains a lovely, pristine area to raise a family. With a suburban, small-town feel, the neighborhood has more Portuguese residents than immigrants or ex-pats, so the community is still very deeply rooted in Lisbon tradition. Benfica is home to the popular football team, S.L. Benfica, whose success brings the neighborhood even more acclaim.

If you’re looking for a calm, safe community in which to raise a family, Benfica offers all of that, along with all the charm of other Lisbon neighborhoods.

Saldanha

Known as Lisbon’s business district, Saldanha buzzes with locals as they commute in for work every morning, often stopping for coffee at one of the corner kiosks. The neighborhood has some of the higher housing prices on the market, but some people find it worth it simply to be among the trendy boutiques and upscale dining.

Home to the Gulbenkian Museum and Parque Eduardo VII, Saldanha offers much in the way of culture and fresh, outdoor spaces. The park is one of the largest in the city and guests will find some of the best views of other Lisbon landmarks.

Saldanha definitely feels like a more modern neighborhood, as much of the historic architecture has been renovated to keep up with current styles. But its excellent public transportation and access to convenient amenities like El Corte Ingles keep the newcomers flooding in. It’s a busy neighborhood with places to go and people to see.

Ajuda

Quaint and quiet, the Ajuda neighborhood of Lisbon isn’t particularly popular with immigrants and ex-pats. The community feels like a tiny, almost forgotten village, with limited public transportation, located fairly far from Lisbon city centre.

However, what it lacks in popularity, it more than makes up for in gorgeous outdoor spaces and proximity to the sea. With a focus on community parks and green areas, Ajuda feels like a paradise. A very low tourist density has left this neighborhood virtually untouched and pristine, and the locals work very hard to keep it this way. The community is tight-knit and friendly, loyal to their way of life. Housing in Ajuda is extremely affordable and its traditional qualities are attractive to some.

There aren’t many attractions in Ajuda, but that’s not what life is about in this neighborhood. The locals just want to live and let live, and they do that in true Portuguese style. Guests won’t find many comforts of home, but perhaps they will find something they love even more: an authentic, Portuguese way of life.

Graça

Graça is quickly becoming a favorite among Lisbon neighborhoods because it seems to offer the best of everything. Traditional Portuguese communities mesh with an influx of immigrants to create a truly collaborative Lisbon experience. This is a very popular neighborhood among ex-pats, and the community continues to grow.

Situated among the hills, Graça offers some of the best views in the city, specifically from Miradouro da Graça and Miradouro de Senhora do Monte.

The charm of Graça is what keeps people returning to it again and again. Quaint cafes with sidewalk seating, locals enjoying a coffee well into the afternoon hours, trolleys slowly making their way across the neighborhood…it’s Lisbon as we all picture it: full of history and old-world ambiance.

A younger population is making a name for themselves in this community, taking advantage of lower rent and the artistic community. Street art has begun popping up all over the neighborhood and has only added to the neighborhood’s charm.

Estrela

Estrela is a perfect neighborhood for those who want a little bit of everything. It offers respite from the bustling city but is also close enough to still feel connected. With plenty of open, natural landscapes and parks, Estrela is home to some of the most beautiful locations in Lisbon. The gorgeous Jardim de Estrela serves as the heart and soul of the neighborhood and is the ideal location for a picnic under a shady tree. Even on the city’s warmer days, the park stays cool and refreshing. The neighborhood is also home to the iconic Basílica da Estrela, easily recognizable in Lisbon’s skyline because of its tower and two domes.

Estrela rarely gets visits from tourists, so it remains a truly authentic Lisbon experience. Housing prices are slightly higher than in other neighborhoods, and the community is an excellent mix of locals and foreigners.

If you’re uncertain about which neighborhood is right for you, Estrela is the perfect place to start.

Parque das Nações

Located on the waterfront of the River Tagus and surrounded by green spaces, Parque das Nações is a suburban community with a bit of a commercial vibe. Lacking much of the old-world charm of Lisbon’s older neighborhoods, Parque das Nações mostly serves as a business district filled with the upper class and nouveau rich residents.

Originally the site of the 1998 World Fair, the Parque das Nações neighborhood has seen a lot of change and transformation. A large redevelopment project made the neighborhood what it is today, with contemporary architecture and modern conveniences.

Home to the Oceanarium and the Lisbon Casino, Parque das Nações is definitely a tourist destination, although not necessarily high on the list for foreigners. All the redevelopment has made the cost of living quite high, and the modern vibe isn’t exactly what most ex-pats are looking for. However, the views can’t be beaten, and the public transportation is quite good in this part of town. The neighborhood has a futuristic vibe and prides itself on innovation and forward-thinking.

Campo de Ourique

Perfect for families, Campo de Ourique offers a small-town feel, right in the heart of Lisbon. Residents of this quaint little neighborhood sacrifice nothing, as they get the best that the city has to offer. Very rarely taken over by tourists, the community is free to be its authentic self: historic and lively. Campo de Ourique embraces its heritage, while also keeping up with a more modern way of life.

Campo de Ourique is home to one of Portugal’s largest shopping centres, the Amoreiras, where visitors can find literally anything. This bustling landmark is the heart of the neighborhood, and locals frequent the shops daily.

Campo de Ourique is also home to the Lisbon airport, which is convenient but can also be a bit of a nuisance, with planes constantly flying overhead.

This is a very popular neighborhood for digital nomads and ex-pats, and the community continues to grow. Although housing prices are slightly high, there are still reasonable options for newcomers.

Life in Lisbon: FAQs

No matter which neighborhood you choose to live in Lisbon, the locals are sure to welcome you with open arms. Lisbon continues to grow its foreign and ex-pat community and has made it easy to seamlessly blend into its traditional way of life. Here are a few extra things to keep in mind as you make your decision:

• Central neighborhoods are best if you don’t plan on having a car.
• Outer suburbs will require a vehicle to get to other parts of the city.
• Housing prices go up the closer you get to the city centre.
• Read through Portugal’s immigration policies and apply for their “Golden Visa” program.
• When evaluating housing costs, don’t forget to factor in taxes.
• Although housing prices are on the rise, general costs of living still remain reasonable.
• It’s easier to find work in Lisbon if you speak more than one language.
• English, German, and Spanish are currently the most valued languages.