Areas to invest in Lisbon

8 min read

Lisbon, located on the estuary of the Tagus River, proudly claims the title of the largest coastal city in Portugal. This capital is highly coveted by property investors due to its exceptional climate, preserved natural environment, and proximity to the beach just 15 minutes from the city centre. Today, Lisbon attracts a diverse range of visitors, including Erasmus students, independent workers (including remote workers), and retirees eager to explore all the charms of this Portuguese city.

Why invest in property in Lisbon?

Neighbourhoods such as Alfama, Chiado, Bairro Alto, and Graça are renowned as the most sought-after areas in the city. All these districts are hotspots for property investors due to their central location and growth potential.
Lisbon is considered an ideal place to invest in Portugal for several reasons.

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Affordable prices

First and foremost, the capital offers affordable properties compared to other European cities, with the added advantage of a better return on investment. Although prices are higher than in rural areas, the consistently rising property prices in the metropolitan regions of Lisbon make it an interesting investment.

The average price per square meter in Lisbon is around 5,500 euros1, ranging between 3,8722 and 8,000 euros2.

Lisbon, a popular city

Lisbon has gained popularity among foreigners in recent years, attracting Europeans, Brazilians, Americans, and Chinese individuals. This increased interest has led to a rise in prices but also a revitalisation of the city’s property market.
This transformation can be observed in different neighbourhoods, which are currently undergoing changes and presenting interesting investment opportunities. Investment in rental properties is also worth considering. Lisbon has experienced an increase in the number of tourists over the last decade, leading to a higher demand for vacation rentals and short to medium-term leases.

Best regions and cities to buy investment property in Portugal

Lisbon, a trendy destination

Lisbon continues to be an appealing destination for property investment due to its unique blend of historical charm, vibrant culture, and economic growth. The best neighbourhoods to invest in may depend on your specific goals and budget. Here are some of the most profitable neighbourhoods for property in Lisbon.

Profitable rental investment

Districts such as Ajuda, Beato, Penha de França, Carnide, and Santa Maria Major offer excellent rental returns. In fact, the overall average for a rental investment shows an average return of 4.14%2.

Which neighbourhoods to choose in Lisbon?

Lisbon, known by the enchanting name « the city of seven hills, » owes much of its charm to these majestic elevations. The seven viewpoints – São Jorge, São Vicente, São Roque, Graça, Santa Catarina, Chagas, and Sant’Ana – add even more splendour to the city.

Focus on 5 flagship neighbourhoods in Lisbon

1 - Alfama, in the heart of authentic Lisbon

The Alfama district is a unique area that will transport you to the past. You will be charmed by its narrow alleys, colourful houses, and breathtaking views of the city. Don’t hesitate to take the yellow tram for an even more authentic and picturesque experience. The atmosphere of the neighbourhood is unforgettable, with warm locals and traditional places where you can savour typical Portuguese dishes (especially cod, sardines, and seafood).

Alfama also houses many cultural attractions, such as São Jorge Castle and the Santa Maria Maior Cathedral of Lisbon. Both of these historical sites are absolutely worth a visit. For art enthusiasts, there is a wide variety of museums to explore, such as the Fado Museum and the National Tile Museum.

Some property prices per square meter: 5,000 to 7,200 euros/sqm (map).

2 - Campo Martires da Patria neighborhood

Located on the central hill above Rossio, the Campo Martires da Patria neighborhood is our top choice for investment in Lisbon. It is bounded by Avenida de la Liberdade to the west and Rua Palma to the east. This location provides proximity to the city centre, making it ideal for short-term rentals, while also offering a genuine neighbourhood experience for those preferring long-term rentals.

Prices in this neighbourhood remain reasonable, and it’s possible to find buildings with good amenities on wider avenues than the bustling city centre. Additionally, parking is easy in this area, providing convenient access to the northern neighbourhoods of Lisbon, especially the nearby beaches accessible via Marques de Pombal.

3 - Baixa neighborhood

The Baixa neighborhood, in the center of Lisbon, buzzes with life. With its lively shopping streets and iconic sites like Plaza del Comercio, the Carmelite Convent, and the Santa Julia elevator, it is always vibrant.

Advantages: Although the neighbourhood is very lively during the day, Baixa is quiet in the evening. Additionally, it enjoys a prime location and easy access to public transportation.
Some property prices per square meter: 5,500 to 6,500 euros/sqm (map).

4 - Bairro Alto, Lisbon's party district

Bairro Alto, Lisbon’s party district, remains a must-see and must-experience for all party and music enthusiasts. This unique neighbourhood located on the hills of Lisbon will offer you an unforgettable experience. The narrow cobbled streets are lined with lively bars and clubs, where you can explore a variety of musical genres, ranging from traditional Portuguese music to jazz and electronic music.

Some property prices per square meter: 6,000 to 9,000 euros/sqm (map).

5 - Chiado, the chic and lively district in the heart of Lisbon

The Chiado district in Lisbon is renowned for its vibrant cultural scene, boasting a plethora of theaters and shops to explore – the perfect place to discover Portuguese culture and elegance.


One of the highlights of the district is Garrett Street, a bustling shopping avenue lined with upscale boutiques and restaurants, including the historic Bertrand bookstore dating back to the 18th century.


Moreover, luxury stores abound in this area, allowing visitors to indulge in sophisticated and pleasant shopping experiences. With its numerous cafes and public spaces, the Chiado district is a lively place teeming with life 24 hours a day.


Some properties prices per square meter: 5,500 to 8,000 euros sqm (map).

Neighbourhoods for family living

Principe Real, a popular and family-friendly district

Principe Real has become increasingly popular in recent years, attracting expatriates and affluent families who appreciate its residential atmosphere. The district is adorned with beautiful buildings and offers a variety of upscale shops, unique restaurants, and casual bars. This neighbourhood is a pleasant blend of locals and expatriates, making it a great place to live. If you’re eager to explore new cultures and perspectives on life, this neighbourhood is perfect for you.


Some properties per square meter: 5,500 to 7,000 euros sqm (map).

Belém, the outskirts district near the Atlantic Ocean

For beach lovers, the Belém district, located near the Atlantic Ocean in Lisbon, is an ideal destination for those seeking a relaxed yet dynamic atmosphere. Famous for its seafood restaurants and houses adorned with ceramics, this district will appeal to those who enjoy shaded green spaces, occupied by remarkable monuments such as the Tower of Belém, built in the 16th century, and the Monument to the Discoveries, a sail-shaped building. Next to the grand Jerónimos Monastery is the renowned Pastéis de Belém pastry shop, known for its custard tarts.

Neighbourhoods for remote workers

If you are in search of a property tailored for remote workers, you might consider Alvalade, Estrela, or Avenidas Novas. Numerous coworking spaces are available in these areas, providing a serene environment for work.
Districts along the estuary, such as Chiado and Lapa, also offer dedicated spaces for full remote work.
Here are a few examples of places dedicated to remote work:

  • Avila Spaces
  • IDEA Spaces
  • Unicorn Portugal Workspace
  • Sitio Work Alvalade
  • Kübe Alvalade

Living a peaceful retirement: Neighbourhoods along the Tagus estuary

The neighbourhoods of Ajuda, Belém, Santos, and Principe Real along the Tagus Estuary offer a unique experience to all their visitors: enchanting views and colourful buildings reflecting in the turquoise waters of the estuary.


The city’s vibrancy is felt here, but with a particularly friendly and relaxed atmosphere. If you seek a tranquil retreat, you will be fulfilled in these neighbourhoods, each rich with history. Every street corner invites you to discover a new hidden treasure of the city. The long stretches of traditional houses, charming cobblestone squares, and streets lined with shops and restaurants will leave you with a memorable experience.

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Other Lisbon Neighbourhoods to discover

Graça, the historic hilltop district of Lisbon

You will fall in love with Graça, the historic district of Lisbon perched on the highest hill in the city! With its breathtaking view of the Tagus estuary, it’s hard not to feel inspired and motivated. History permeates the cobbled streets of Graça, from royal palaces to Baroque churches. This is where you will find the very essence of the Lisbon soul, breathing its own culture and heritage.

Stroll through its narrow medieval alleys, making sure to stop at the imposing Graça Church, which has dominated the city since the 18th century. The locals are warm and welcoming, ready to passionately share the stories of their neighbourhood. Let yourself be carried away by the aromas of traditional Portuguese cuisine in local restaurants, or take a seat in a terrace café to sip coffee while enjoying the stunning view. And don’t forget to end your day beautifully by admiring the sunset from Miradouro da Graça, one of the most beautiful viewpoints in Lisbon.

Intendente, Lisbon's off-the-beaten-path neighbourhood

Intendente is a neighbourhood in Lisbon that deserves your full attention. While often overlooked by typical tourist routes, it is an incredibly charming and lively place that is truly worth getting to know. If you are in search of an authentic spot in Lisbon, Intendente is a neighbourhood with much to offer, from colourful streets to fascinating historic buildings, not to mention culinary specialities and lively bars.

One of the most unique features you’ll notice in Intendente is the presence of several murals, created as part of a neighbourhood revitalisation project. With art pieces, independent fashion stores, vintage shops, and artist workshops, Intendente is a creative and diverse district.

If you enjoy exploring unique places, sensing the essence of a city, discovering local cultures, and culinary specialities, Intendente stands out as one of the most interesting neighbourhoods in Lisbon to invest in, away from the well-trodden paths.

How to find a property in Lisbon?

If you are considering living in Lisbon for your retirement or buying a residence to relocate with your family, a locally based iad Overseas consultant* can be your ideal point of contact to assist you in realizing your projects. Don’t hesitate any longer; get in touch with one of them in Lisbon.




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