Planning a trip to Lisbon but unsure where to stay? After a month exploring Lisbon’s neighborhoods, I’ve discovered how much your choice of area can shape your experience. Though Lisbon is small, staying in the right spot is key to balancing convenience with peace and quiet. In this guide, I’ll cover the best neighborhoods in Lisbon, sharing tips and insights to help you choose the ideal place for your stay. I’ll also provide some hotel recommendations in each area, plus some things to see and do. Let’s get into exploring Portugal’s capital city.
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Table of Contents
Where to Stay in Lisbon, Portugal
Best Neighborhoods in Lisbon, Portugal
Principe Real
My top choice for where to stay in Lisbon is Principe Real, and for good reason. This neighborhood boasts beautiful mansions, upscale shops, and fine dining, making it one of Lisbon’s most desirable areas. It’s a high-end neighborhood with charming antique and boutique shops, offering a more refined experience.
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Principe Real provides easy access to the city’s major attractions while being far enough from the tourist crowds to offer a peaceful stay. You’ll find some of Lisbon’s best restaurants, bars, and nightclubs right on the main street, making it a perfect blend of luxury and convenience.
One of the best features of Principe Real is its elevation. Located at the top of a hill, getting around Lisbon often means walking downhill, which is a major perk in this hilly city. While the main street is lively, the side streets are surprisingly quiet, offering a peaceful retreat. I stayed in Principe Real for an entire month, and it was fantastic—I couldn’t imagine staying anywhere else. There are plenty of great hotels and Airbnbs in the area.
Tips for Staying in Principe Real
- Visit Jardim de São Pedro de Alcântara: Enjoy stunning panoramic views of Lisbon from this charming garden. It’s the perfect spot to relax with a glass of wine or an espresso while taking in the cityscape.
- Check Out The Insólito: One of Lisbon’s top rooftop bars, The Insólito offers fantastic cocktails and breathtaking views. While there’s a restaurant attached, the views and drinks alone make it worth a visit.
- Explore Jardim Botânico de Lisboa: This botanical garden, connected to the natural history museum, may be underwhelming at times, but when everything is in bloom, it’s a beautiful place to explore.
Avenida da Liberdade
Luxury shopping, fine dining, public art, and quaint parklet cafes define Avenida da Liberdade. This main shopping street in Lisbon channels a Parisian vibe, with high-end stores lining the tree-lined avenue. It’s one of the most accessible areas in the city, with metro, buses, and taxis readily available.
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Along the avenue, you’ll find some of Lisbon’s most luxurious hotels, including the Four Seasons and Ritz Carlton. While it’s the priciest option on this list, it might be worth it for a short stay if you want easy access to top attractions.
While I enjoy strolling along Avenida da Liberdade, I wouldn’t choose it for a long stay compared to other neighborhoods in Lisbon. This area is all about big-name brands like Dior, Prada, and DSquared2, with fewer boutique shops or small businesses. Don’t miss the intricate tile mosaics underfoot as you walk the avenue—they’re a true Lisbon highlight.
Tips for Exploring Avenida da Liberdade
- Estufa Fria: Just north of the avenue, this hidden botanical garden features beautiful foliage and water features, tucked within a larger park filled with stunning monuments.
- Zenith Brunch & Cocktails: Enjoy a delicious brunch with great drinks at Zenith, located just two blocks off the main avenue.
- Street Cafes: Avenida da Liberdade is lined with small cafes perfect for relaxing with a cocktail or espresso under the trees. There are countless options to choose from as you stroll along.
Chiado
Chiado is one of my favorite neighborhoods in Lisbon. Although it’s sometimes grouped with the more touristy Baixa, Chiado is a distinct area just to the west. It’s a charming neighborhood with high-end shops, luxury hotels, and quiet streets, all within quick reach of Lisbon’s main attractions. Chiado is an excellent choice if you want a central location without the overwhelming tourist vibe. While it’s still popular with visitors, it retains a more refined, less hectic atmosphere.
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Chiado’s prime location, perched on a hill with stunning views, makes it easy to explore other top neighborhoods. It’s home to beautiful art galleries and some of my favorite restaurants, offering a quieter stay with excellent access to the rest of the city.
Tips for Staying in Chiado
- Rua Garrett: A bustling pedestrian street featuring upscale shops, restaurants, and cafes. It’s a great place to explore, with plenty of street performers adding to the lively atmosphere.
- Carmo Convent: Visit the haunting ruins of this gothic church, partially destroyed in the 1755 earthquake. You can explore the museum inside or admire much of the structure from the outside.
- National Theatre of São Carlos: This stunning 18th-century opera theatre is worth a visit, both for its beautiful architecture and the chance to catch a live music performance. Be sure to check for showtimes.
Bairro Alto
If you love to party, Bairro Alto is one of the best neighborhoods in Lisbon to stay in. Known for its vibrant nightlife, this area is famous for its narrow, lively streets filled with bars and restaurants.
While it may seem quiet during the day, Bairro Alto truly comes alive at night, especially on weekends. The bars are small, so much of the action spills out into the streets, creating a lively, communal atmosphere. Bar hopping is a big part of the culture here, turning the whole neighborhood into one big party with a young, energetic crowd.
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When it comes to staying in Bairro Alto, it all depends on your preferences. If you’re a night owl who enjoys late-night partying, you’ll love this area. However, if you prefer quiet nights and early mornings, it might not be the best fit, as the noise can last well into the early hours. If the nightlife doesn’t bother you, Bairro Alto could be the perfect spot for your stay in Lisbon.
Tips for Staying in Bairro Alto
- The Botanical Den: A vegan bar serving some of the best martinis in Lisbon, along with tasty bar food.
- Rua da Rosa: A picturesque street painted pink with umbrellas overhead—perfect for a quick photo op.
- Praça Luis de Camões: A beautiful historic square located at the bottom of the Bairro Alto district, offering a scenic spot to relax.
Alfama
When most people picture Lisbon, they’re likely imagining Alfama. This is the oldest neighborhood in the city, surviving the devastating 1755 earthquake that destroyed much of Lisbon.
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Alfama is full of narrow streets, laundry hanging from balconies, friendly locals, and old-world charm. It’s the perfect place for those seeking a classic Lisbon experience. The steep, winding streets give this area a unique character, and you’ll find many locals who have lived here for generations.
Alfama’s beauty lies in its historical charm and slower pace of life. If you appreciate these qualities, Alfama might be the best neighborhood for your stay in Lisbon. However, it’s important to be mindful of over-tourism, which has impacted local residents in recent years.
Be respectful of the community as you explore. For music lovers, Alfama is famous for its live Fado performances. But honestly, the best way to enjoy Alfama is to simply wander its streets and get lost.
Tips for Staying in Alfama
- Castelo de São Jorge: Visit Lisbon’s main castle, dating back to the 11th century, for incredible city views. It’s very touristy, so arrive early to avoid long lines.
- Miradouro de Santa Luzia: This stunning observation deck offers breathtaking views of Alfama. It’s a must-visit for anyone exploring the neighborhood.
- Lisbon Cathedral: This 17th-century cathedral is a major landmark in Alfama and well worth a visit for its historical significance and beautiful architecture.
Cais do Sodré
Cais do Sodré, located closer to the waterfront, is a neighborhood I spent less time in, but it has its own charm. This area has a low-key, chill vibe with a strong local feel. Tourism isn’t overwhelming here, making it a relaxed spot to stay.
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With several universities nearby, the atmosphere is young and vibrant, and there are plenty of modern restaurants to enjoy. Cais do Sodré might be one of the best neighborhoods in Lisbon if you’re looking for an affordable stay in a lively area with a great nightlife scene.
The most notable attraction in Cais do Sodré is the Time Out Market, a bustling food hall with vendors offering a wide variety of dishes. While it’s always busy, it’s worth a visit if you don’t mind the crowds.
Aside from the market, there aren’t many major tourist attractions in this neighborhood, but it’s within walking distance of the waterfront and other popular areas. Accommodations here tend to be more affordable, making it a good option for budget-conscious travelers.
Tips for Staying in Cais do Sodré
- Time Out Market: A must-visit food hall with vendors offering a wide range of dishes. It gets very busy, especially on weekends, and the food can be pricey, but the quality is reputedly top-notch.
- Pink Street: Like in Bairro Alto, this street is painted pink and features overhead umbrellas. It’s part of a series of colorful streets found throughout Lisbon’s neighborhoods.
Baixa
If you want to be in the heart of Lisbon’s hustle and bustle, Baixa is the neighborhood for you. This area is home to many of the city’s top tourist attractions, making it an exciting but very touristy place to stay.
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While Baixa is stunning to walk through, be prepared for the crowds and the tourism-focused atmosphere—most restaurants, bars, and shops cater heavily to tourists. If you thrive on the energy of a busy city center, Baixa might be one of the best neighborhoods in Lisbon for your visit.
Baixa offers direct access to major sights like the Santa Justa Lift, Praça do Comércio, and Tram 28, among others. The neighborhood is relatively flat, making it easy to walk around, but keep in mind that you’ll need to head uphill to reach attractions outside of Baixa.
The area is well-served by trams and tuk-tuks, making it easy to get around. While there might be less touristy spots in Baixa that I didn’t explore, my experience found it to be overwhelmingly geared towards tourism. Still, it’s undeniably a beautiful part of Lisbon.
Tips for Staying in Baixa
- Praça Dom Pedro IV: One of Lisbon’s most beautiful plazas, featuring the famous waved tiles. It’s a lovely spot for a stroll.
- Rua Augusta: A picturesque pedestrian street lined with shops, restaurants, and cafes. Perfect for a leisurely walk and some window shopping.
- Praça do Comércio: Lisbon’s most iconic landmark, this massive plaza is flanked by restaurants and cafes, with a grand monument at its center. It’s a must-see in Baixa.
Tips for Choosing Where to Stay in Lisbon
- Get Connected with Airalo e-SIMS: Stay connected seamlessly with an Airalo e-SIM. This ensures you have mobile data as soon as you land, making it easier to navigate Lisbon and explore its neighborhoods.
- Hills, Hills, Hills: Lisbon’s steep terrain can be misleading. What appears close on a map might involve challenging uphill walks. Keep this in mind when selecting your accommodation, especially if you want to minimize strenuous climbs.
- Proximity to Public Transport: Staying near a metro station or bus stop can make your stay more convenient, especially if you plan to visit various parts of the city. Lisbon’s public transport is efficient and can save you time and effort.
- Consider Your Itinerary: Base your stay on the attractions you most want to visit. Choosing a neighborhood close to your key sights helps you spend more time exploring and less time commuting.
- No Central Air or Heating: Be aware that many traditional Lisbon accommodations may not have central air conditioning or heating. If you’re visiting during the hot summer or cooler winter months, make sure your chosen place is equipped with what you need for comfort.
- Balance Peace and Proximity: If you love vibrant nightlife, consider staying in areas like Bairro Alto. However, if you prefer quieter evenings, neighborhoods like Alfama or Graça offer a peaceful retreat while still being close to Lisbon’s attractions.
Conclusion
No matter which neighborhood you choose, Lisbon offers an unforgettable experience. After spending a month exploring these areas, I can say that the best place to stay depends on your preferences, whether it’s activities, budget, or mobility needs. Keep in mind that Lisbon’s hills can be challenging, especially for those with mobility concerns. Consider what matters most to you, and you’ll find the perfect neighborhood to make your Lisbon stay truly memorable.
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