The BEST Areas to Stay in Lisbon Portugal: A Comprehensive Guide

Are you planning a trip to the stunning Lisbon in Portugal? We love this city – the colors, the food, the vibe! But it can be overwhelming to find the best place to stay in Lisbon with so many great neighbourhoods to choose from. From bustling, busy neighborhoods filled with iconic sites to serene areas like Príncipe Real with the finest Lisbon luxury apartments, there’s something for everyone. We’ll go over the best areas to stay in Lisbon, each with its own personality and must-see sights to help you pick the perfect base for your trip.

How to Choose the Best Area to Stay in Lisbon

Choosing the perfect neighbourhood to stay in Lisbon can truly make your trip. Every district has its own distinct vibe and a wide range of experiences available. For all you wanderlust souls out there, finding the perfect area in Lisbon is the key to an extraordinary and unforgettable trip.

Proximity to Lisbon’s Attractions

Being close to attractions is a total game-changer. It not only saves you precious time but also cuts down on transport costs. Alfama is an absolute dream if you have a deep appreciation for history and want to be in close proximity to iconic landmarks such as São Jorge Castle and the Lisbon Cathedral. Chiado is a gem for cultural attractions, shopping, restaurants and bars. Baixa is perfect if you are new to the city, and want a vibrant place to stay with convenient access to lost of attractions.

Accessibility and Transportation

Some neighborhoods have better public transport links than others. If you plan to explore different parts of Lisbon, staying in a well-connected area like Baixa or Chiado is ideal.

Safety and Atmosphere

The vibe of a neighborhood can greatly affect your comfort and enjoyment. If you prefer a quiet and peaceful environment, areas like Príncipe Real are more suitable than the bustling Bairro Alto.

Local Amenities

Are you a foodie? Proximity to restaurants, shops, and bars can enhance your stay. Chiado could be the perfect place to stay for you!

Budget Considerations

Different areas offer various accommodation options that can fit different budgets.

  • Alfama: Mix of affordable and mid-range accommodations in a historic setting.
  • Bairro Alto: Budget-friendly with cheaper hostels and lively nightlife.
  • Príncipe Real: More expensive, catering to those seeking luxury and high-end stays.

Quick Tips: Where to Stay in Lisbon

Best area to stay in Lisbon first time: Alfama 
Best Neighborhood to Stay in Lisbon with family: Belém
Best area to stay in Lisbon for tourists: Baixa or Chiado
Best place to stay in Lisbon for a Local Vibe: Graça
Best Area to Stay in Lisbon for Nightlife: Bairro Alto
Best Area of Lisbon to Stay for a luxe stay: Príncipe Real

Best Areas to Stay in Lisbon: Your Neighborhood Guide

There’s no doubt, there are plenty of unique things to do in Lisbon, and you need a good base to explore all the sights from! In this guide, we’ll take you through some of the best areas to stay in Lisbon, Portugal, highlighting their unique qualities, attractions, and conveniences. Whether you want bustling nightlife in Bairro Alto, the scenic viewpoints of Graça, the serene of Belém, or the trendy Príncipe Real, our guide will help you find the ideal neighborhood for your stay in Lisbon

1. Alfama

Best for first timers looking for picture perfect postcard views.

Alfama aesthetics

Alfama is one of the best areas to stay in Lisbon, especially if you are looking for those postcard perfect scenic views of the historic streets. The district is the oldest in Lisbon, and is a must visit, whether you are spending 1 day in Lisbon or 3 weeks! It has narrow cobbled streets, tightly packed homes, and LOTS of steps that wind through the area.

One of the highlights of staying in Alfama is that you are close to a range of historic sites – Castelo de São Jorge, Panteão Nacional and the Lisbon Cathedral (Sé de Lisboa) are some of the popular landmarks that showcase the that rich history of the city.

Alfama is also known for its scenic viewpoints, or “miradouros,” which provide breathtaking panoramas of the Lisbon city-scape. Miradouro de Santa Luzia and Miradouro das Portas do Sol are two of the most popular spots where you can enjoy stunning views while soaking up the afternoon sun.

While Alfama’s charm lies in its historic and narrow streets, the steep and winding roads can be challenging to navigate, and public transportation is sparse – so be prepared to walk, a lot! However, trams and elevators are available, adding to the area’s vintage appeal (just be prepared to wait). 

Sites of Interest in Alfama

  • Castelo de São Jorge: Historic castle with panoramic views of Lisbon.
  • Lisbon Cathedral: Gothic-style cathedral, a must-see landmark.
  • Miradouro de Santa Luzia: Scenic viewpoint with stunning city views.
  • Miradouro das Portas do Sol: Another popular viewpoint offering breathtaking views.
  • Feira da Ladra: A great market held on Tuesday’s and Saturday’s, with all sorts of thrifty and vintage items. 
  • Casa dos Bicos (the house of spikes): This is a site you don’t want to miss if you are into architecture.   

Best places to eat & drink in Alfama:

  • For coffee: White lady coffee, The Coffee Alfalma
  • Food & Drinks: Santa Pausa, Santa Clara dos Cogumelos, Maria Palato, Madame Bacchus, SEM restaurant

Alfama Pros and Cons:

Pros:

  • Rich historical feel
  • Scenic viewpoints providing beautiful city views
  • Classic architecture and narrow streets

Cons:

  • Touristy area, so expect long lines
  • Limited transport options
  • Steep and winding streets can be challenging to navigate
  • Less accessibility 

Best places to stay in Alfama

For luxury $$$: Seafarer Terrace, a penthouse apartment with a private rooftop terrace

Mid-range $$: ON/SET Alfama, Lisbon Cinema Apartments

For cheaper stays $: Paulo’s one bedroom comfortable apartment

alfama images with text overlay Alfama Lisbon

2. Mouraria

Best for those looking for a blend of history, culture, and modern artistry.

Mouraria skyline

Mouraria, located next to Alfama, is another historic district in Lisbon that provides a special fusion of rich history and energetic cultural variety.

Tucked away in the hills leading to the iconic Castelo de São Jorge, Mouraria is also known for its independent arts scene, with many street art pieces spread throughout the neighboord. Some of the well known pieces to try and see are “Fado Vadio” and “Selfie“. These artworks capture the core of Mouraria’s eclectic and vibrant culture.

Mouraria also has an amazing selection of restaurants and cafes – with plenty of international cuisines reflecting the neighborhood’s multicultural makeup. Just take a stroll around the streets and you’ll find traditional Portuguese dishes, amazing Chinese, Indian, and more flavors from around the globe. If you are a foodie, Mouraria is one of the best areas to stay in Lisbon!

Sites of Interest in Mouraria

  • Castelo de São Jorge: Historic castle offering panoramic views of Lisbon.
  • Street Art: Check out the piece “Selfie”and the iconic “”Fado Vadio” on Escadinhas de São Cristóvão
  • Diverse Eateries: Plenty of amazing restaurants to dine at, offering international cuisines

Best places to eat & drink in Mouraria

  • For coffee: Kossie’s Cafe, Fábrica Coffee Roasters, Augusto Lisboa
  • Tapas & Drinks: The Food Temple, Tentações de Goa, Zé da Mouraria, Velho Eurico, Tapas Mia Pizzaria, Boutique Taberna

Mouraria Pros and Cons:

Pros:

  • Rich historical feel with a diverse cultural scene
  • Thriving independent arts scene with iconic street art
  • Wide variety of international cuisines and dining options

Cons:

  • Few public transportation options
  • Steep hills and narrow streets may be difficult

Best places to stay in Mouraria

For luxury $$$: This 4-bedroom apartment has a stunning terrace overlooking the castle

Mid-range $$: Trendy 2 bedroom apartment in a beautiful historic building

For cheaper stays $: Cozy and bright apartment overlooking the castle

mouraria highlights with text overlay

3. Belém

For those looking for a serene environment with easy access to Lisbon’s main attractions.

Belem with text overlay

For families or if you are seeking charm and simplicity, Belém is one of the best areas to stay in Lisbon. Just outside of busy downtown, it has lush parks and green spaces, which definitely provide a bit of respite from bustling centre, all while having easy access to the city via public transport.

Some of the sites to check out include the famous Belém Tower (Torre de Belém) a UNESCO World Heritage Site by the Tagus River. Another UNESCO site, the Mosteiro dos Jerónimos, is close by and features Manueline architecture as well as the Padrão dos Descobrimentos (Monument to the Discoveries).

If you are a foodies you need to check out the Pastéis de Belém pastry bakery, known for its mouthwatering Portuguese custard tart ‘Pastel de Nata’ (or Pastel de Belém as they call it). This bakery has been operational since 1837, and you’ll find out why!

Despite its historical and culinary attractions, Belém has a quieter nightlife compared to the city center, making it a great choice for families looking for a more relaxed neighbourhood. 

Sites of Interest in Belém:

  • Belém Tower (Torre de Belém): Historic tower and UNESCO World Heritage Site.
  • Mosteiro dos Jerónimos: Manueline monastery and UNESCO site.
  • Padrão dos Descobrimentos: Monument celebrating Portugal’s age of exploration.
  • Pastéis de Belém: Famous pastry shop known for its traditional Pastel de Nata (Belem)

Best places to eat & drink in Belém:

  • For coffee/breakfast: Augusto Lisboa, Cafe Social Lisboa
  • For food & drinks: Pastéis de Belém, Prova-Enoteca, Ouvi Dizer, Sombra do Tejo, O Frade

Belém Pros and Cons:

Pros:

  • Lots of historical landmarks and cultural sites
  • Serene environment with parks and green spaces

Cons:

  • Limited nightlife options
  • A little far from the city center, requiring a short commute
  • Less bustling than central Lisbon

Best places to stay in Belém

For luxury $$$: Restelo Reverie or Restelo Muse

Mid-range $$: Altis Belem Hotel & Spa

For cheaper stays $: Embaixador Apartments & Suites

Belem infographic with text overlay

4. Chiado

For those who want to be close to everything. 

Chiado skyline

Chiado is an great choice if you are short on time and want to stay in the heart of Lisbon’s action. This lively neighborhood has a great atmosphere, with plenty of coffee shops, restaurants and boutiques to explore.

Staying in Chiado means you’ll have access to some of the nicest boutique hotels and affordable accommodations, while still being walking distance to Lisbon’s key attractions. The neighborhood’s blend of old and new is reflected in its architecture, with beautifully preserved buildings sitting alongside contemporary buildings.

Sites of Interest in Chiado:

  • Café A Brasileira: One of the oldest and most famous coffee shops in Lisbon
  • Rua Garrett: A great shopping street with a mix of international brands and local boutiques
  • Teatro Nacional de São Carlos: A historic opera house
  • Chiado Museum (Museu do Chiado): Contemporary Portuguese art

Best places to eat & drink in Chiado:

  • For coffee: Simpli Coffee Chiado, The Mill
  • Food & Drinks: Mini Bar, O Purista, BytheWine, Lisboa Bar

Chiado Pros and Cons:

Pros:

  • It’s in a central location – close to major sites
  • Lots of coffee shops and restaurants
  • Great shopping and a range of boutique hotels

Cons:

  • Can be crowded during tourist seasons
  • Limited parking options 

Best places to stay in Chiado

For luxury $$$: Sterling Gold, a two level apartment with a balcony with fabulous views across the rooftops of Lisbon

Mid-range $$: Vintage apartment with boho style and a great balcony

For cheaper stays $: One bedroom apartment with a spacious, bright living space

Chiado infographic

5. Bairro Alto

Perfect for those looking for lively nightlife

Bairro Alto

Bairro Alto is one of the best areas to stay in Lisbon if you are looking for lively nightlife. Known as the city’s bohemian quarter, it transforms dramatically from day to night. By day, Bairro Alto is a laid-back spot with quirky cafes, delicious food, and a cozy aesthetic, but as the sun sets, Bairro Alto comes alive as Lisbon’s party spot. 

One of the highlights is catching some live music at Páginas Tantas, Alface Hall’s bar and Galeria Zé dos Bois. Bairro Alto is within walking distance to Chiado and Baixa, making it a great base for exploring Lisbon’s attractions during the day (if you don’t mind the energetic nights).  However, if you are with a family, Bairro Alto might not be the best choice as it can have a noisy night scene.

Sites of Interest in Bairro Alto:

  • Páginas Tantas: Popular jazz bar with live music
  • Miradouro de São Pedro de Alcântara: Scenic view spot of Lisbon
  • Street Art: Vibrant murals throughout
  • Rua da Atalaia: Central street lined with bars and clubs

Best places to eat & drink in Bairro Alto:

  • For coffee: Tanoa Café, Hello Kristof, Dear Breakfast, Copenhagen Coffee Lab
  • Food & Drinks: Bites Tapas & Wine Restaurant, O Trevo, Oficina do Duque

Bairro Alto Pros and Cons:

Pros:

  • Lively nightlife with a wide variety of bars and clubs
  • Close proximity to Chiado and Baixa, making it easy to explore

Cons:

  • Can be noisy and crowded, especially at night
  • Not ideal for families or if you are looking for a quiet stay with early nights

Best places to stay in Bairro Alto

For luxury $$$: The Pious Eye, a spacious one bedroom apartment with a communal terrace

Mid-range $$: Scavenger’s Delight, old Portuguese style with an open living area and balcony

For cheaper stays $: 2 bedroom apartment with a quirky feel

Bairro Alto infographic

6. Baixa

A popular place to stay to maximize time in the city.

Baixa

One of the main and most central neighborhoods in Lisbon is Baixa. It really does offer unparalleled convenience for walking around, exploring the city. This busy area is packed with iconic landmarks, squares, and great shops, making it a perfect base for tourists (however be prepared for it to be busy!).

In Baixa, you’ll find some of Lisbon’s most famous sites. The MUDE Fashion and Design Museum is a must-visit, the Rua Augusta Archway offers stunning views of the city, and Rossio Square is a hub with plenty of cafes and shops. The iconic Santa Justa Elevator is also here and provides a unique way to explore the city.

Baixa also has great public transport connections, with the Baixa-Chiado metro station centrally located, allowing easy access to other parts of the city. The famous Tram 28, which passes through many of Lisbon’s historic neighborhoods, is also located here.

However, Baixa’s central location and attractions mean it can get very busy, especially during the high season. The neighborhood is a hotspot for shopping, with Avenida da Liberdade, Rua Augusta, and Rua da Prata great picks for browsing, with high-end boutiques to local stores.

Sites of Interest in Baixa

  • MUDE Fashion and Design Museum: Showcasing contemporary art and design
  • Rua Augusta Arch: An iconic site
  • Rossio Square: Central square with cafes and shops
  • Santa Justa Elevator: Historic elevator with panoramic views
  • Tram 28: Iconic tram route through historic neighborhoods
  • Praça do Comércio: Grand square by the Tagus River

Best places to eat & drink in Baixa:

  • For coffee: Espressolab Baixa, Copenhagen Coffee Lab Baixa, The Coffee, Fábrica Coffee Roasters
  • Food & Drinks: Manjerica (vegan dishes), Capítulo Restaurant & Bar, Pizzaria Tapas La Casa, Love more bar, Ruby Rosa

Baixa Pros and Cons:

Pros:

  • Central location close to major attractions and landmarks
  • Great public transport connections via Baixa-Chiado metro station
  • Lots of shops

Cons:

  • Can be extremely busy and crowded, especially during high season
  • Tourist-heavy
  • Noise might not appeal to those seeking a quieter stay

Best places to stay in Baixa

For luxury $$$: Bolo Cremoso, a traditional Portuguese designed apartment with exposed beams and azulejo details

Mid-range $$: Through the Woods, a contemporary 2 bedroom apartment

For cheaper stays $: Correiros Apartment in Downtown Baixa

Baixa infographic

7. Graça

Unique charm and contemporary cool.

Graça

Graça is the best area to stay in Lisbon if you are looking for more of a local atmosphere. It’s positioned at the highest point in Lisbon, and the area has some seriously stunning views, great coffee shops and restaurants. It feels away from the city, while being only a 20-minute walk to Baixa.

One of Graça’s highlights is the Miradouro de Nossa Senhora do Monte, offering amazing views of Lisbon (especially at sunset). Another popular spot is the Jardim da Cerca da Graça, where you can find locals enjoying the sunset with some drinks, making it a perfect place to experience the neighborhood’s laid-back vibe.

Sites of Interest in Graça

  • Miradouro de Nossa Senhora do Monte: Scenic viewpoint with panoramic views of Lisbon
  • Jardim da Cerca da Graça: Popular park for picnics and drinks at sunset

Best places to eat & drink in Graça

  • For coffee: Augusto Lisboa, Curva, Lapso Cafés Especiais, Savas
  • Food & Drinks: Damas, Vino Vero, Graça do Vinho, RD’s, Altar, Augusto Lisboa, Bar da Graça

Graça Pros and Cons:

Pros:

  • Local atmosphere with a young population
  • Stunning viewpoints and scenic spots for sunsets

Cons:

  • Steep steps and hilly terrain can be challenging to navigate
  • Slightly farther from the city center, requiring a 20-minute walk
  • Limited public transportation options compared to more central neighborhoods

Best places to stay in Graça

For luxury $$$: Vine Leaf, a 3 bedroom apartment with views of the Tejo river from a private terrace

Mid-range $$: Fishermen Tales, an open-plan style apartment with a small balcony

For cheaper stays $: Travessa House, a 2 bedroom apartment with a large terrace 

Graça infographic

8. Príncipe Real

Upscale living, trendy shopping, and a vibrant food scene.

Príncipe Real

Príncipe Real is one of the best areas to stay in Lisbon if you love shopping, food, and trendy vibes. U on the hillside, this neighborhood offers great views over the entire city, making it a picturesque place to stay. It has public parks, such as the Príncipe Real Garden, which make a great spot to chill for the afternoon, soaking in some natural beauty.

The neighborhood is also home to some of Lisbon’s steepest streets, adding a unique charm, and excellent exercise opportunity! It’s less crowded and touristy compared to other areas in Lisbon, however it does have accommodations are also a bit more expensive.

Sites of Interest in Príncipe Real

  • Príncipe Real Garden: Public park with beautiful greenery and historic fountains
  • Shopping Streets: Boutique stores, antique shops, and trendy retailers
  • Viewpoints: Stunning views over Lisbon from various hillside spots
  • Culinary Scene: Diverse range of high-end restaurants

Best places to eat & drink in Príncipe Real

  • For coffee: The Venue
  • Food & Drinks: Gin Lovers Bar & Restaurant, The Bar, Imprensa Cocktail and Oyster Bar, The V Rooftop Bar, Restaurante O Tapas

Príncipe Real Pros and Cons:

Pros:

  • Trendy neighborhood with great shopping and dining
  • Remarkable views over Lisbon from hillside locations
  • Less crowded and touristy, providing a relaxed atmosphere

Cons:

  • Higher cost of living and accommodations
  • Some of the steepest streets in the city, which can be challenging to navigate

Best places to stay in Príncipe Real

For luxury $$$: Views Over Breakfast, a top floor apartment with beautiful balcony views

Mid-range $$: Verdant Gold, a stylish bright apartment with windows on all sides and nature-inspired interiors

For cheaper stays $: This charming 3 bedroom apartment with a traditional feel

Príncipe Real
  1. How to get around Lisbon

    There are various transportation options available in Lisbon, including metro stations, trams, buses, and walking accessibility. Here is a summary of each of the neighbourhoods and what you might expect for transport options.

    Alfama: Limited transport options, mostly accessible by walking, and via Tram 12 or 28.
    Mouraria: Steep hills, better for walking.
    Belém: Well-connected by buses and trams, slightly outside the city center.
    Chiado: Central location with multiple metro stations and easy walking access.
    Bairro Alto: Walkable to nearby neighborhoods, but steep streets.
    Baixa: Central hub with great metro, tram, and bus connections.
    Graça: Less frequent public transport, but excellent walking views.
    Príncipe Real: Central with good metro access, but steep streets.

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Author

  • Vivien De Greef

    Vivien de Greef is a co-founder of The Dharma Trails and a passionate advocate for sustainable living and slow travel. Her unique background in Occupational Therapy enriches her approach, blending well-being with environmental consciousness to inspire eco-friendly travel worldwide.

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