Best Neighborhoods to Live in Lisbon 2025
Lisbon's diverse neighborhoods offer something for everyone, from historic charm to modern amenities. Here's our guide to the best areas to live in Portugal's capital city.
Top Residential Neighborhoods
1. Campo de Ourique – The Local Favorite
Campo de Ourique is one of Lisbon's most beloved residential neighborhoods, especially among locals. Often referred to as a "city within a city," this area combines a relaxed vibe with a vibrant local culture. It's known for its independent shops, gourmet food scene, and community feel. Life in Campo de Ourique is slower-paced, yet full of charm. There's the Campo de Ourique Market, a beautifully renovated space where you'll find everything from fresh produce to artisanal snacks and wine bars. The area is also home to some of the best bakeries in Lisbon, like Padaria do Povo and Pastelaria Aloma. Families are drawn here for the reputable schools (including the French Lycée Charles Lepierre) and safe streets. It's not connected to the metro system, which might be a downside for some, but many locals see it as a trade-off for the neighborhood's tranquil, village-like feel.
2. Alvalade – Suburban Comfort with Urban Access
Alvalade is a spacious, green, and highly livable neighborhood, especially popular with families and professionals looking for a more residential lifestyle without leaving the city. Built during the mid-20th century, it reflects thoughtful urban planning — wide avenues, parks, and efficient public transport. It's one of the few neighborhoods in Lisbon where you'll find detached houses alongside apartment buildings. Alvalade boasts several large parks, including Jardim do Campo Grande, perfect for outdoor sports or relaxing weekends. The Alvalade Market is a daily affair, and there's a fantastic selection of traditional Portuguese restaurants and cozy cafes. The vibe is calmer than central Lisbon, but you're still well-connected via metro and bus. It's a favorite among those who want balance — peaceful living with easy access to the city's action.
3. Príncipe Real – Trendy and Cosmopolitan
If you're looking for a chic, upscale neighborhood with flair, Príncipe Real is the place to be. Often compared to SoHo in New York or Le Marais in Paris, this district is full of beautifully restored 19th-century buildings, boutique stores, art galleries, and LGBTQ-friendly nightlife. The area is home to Jardim do Príncipe Real, a lovely park where locals gather on weekends for the organic farmer's market or to simply sip coffee under the massive cedar tree. Foodies will love the abundance of gourmet restaurants and elegant wine bars, and culture lovers will appreciate the eclectic mix of design shops and concept stores. While prices have risen in recent years, residents enjoy an unbeatable quality of life. Príncipe Real is ideal for creatives, young professionals, and expats who want to live in the heart of Lisbon's social and cultural scene.
4. Estrela – Elegant and Peaceful
Estrela offers a quiet, elegant lifestyle with just the right dose of charm and history. Centered around the iconic Basílica da Estrela and the Jardim da Estrela park, this neighborhood exudes a serene, almost regal atmosphere. Think leafy boulevards, pastel-colored buildings, and traditional tilework everywhere you look. Though it's mostly residential, Estrela is just a stone's throw away from the bustling neighborhoods of Santos and Cais do Sodré. You get the best of both worlds: peaceful mornings and lively nights if you want them. The tram 28 famously rolls through here, adding a touch of nostalgia. It's a favorite among retirees, diplomats, and families looking for spacious homes and a laid-back, high-quality lifestyle.
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