Lisbon is a myriad of charming areas scattered across the city. While there are charming pockets of traditional hideouts and waterfront views, the cobblestone streets and steep climbs are not for the faint-hearted. With many day trip options from Sintra to the beautiful coast of Cascais, Lisbon is the ideal base for those looking to explore other parts of the country.
After traveling to the capital city a few times, I’ve found the best neighborhoods to stay in Lisbon.
Lisbon Quick Overview
Alfama: Historic Old Town Charm
Baixa & Rossio: Central Landmarks
Chiado & Bairro Alto: Bohemian Finds
Cais Do Sodre: Relaxed and Chill
Good Morning Solo Traveller (Budget in Rossio)
Blue Liberdade Hotel (Mid-Range in Rossio)
Hotel Inn Bairro Alto (Mid-Range in Bairro Alto)
Palacio Ludovice (Luxury in Chiado)
Your Guide to the Best Neighborhoods to Stay in Lisbon
Thinking about Lisbon, it’s important to talk about the layout of the city itself. All streets are organized in a grid pattern and separated by city squares. The pockets of winding streets here and there can certainly make it seem a little confusing at first, but all streets are actually pretty much parallel. When in doubt, walk down. The steeper you climb, the higher up into the city you’ll reach- which isn’t a bad thing for the views.
Getting the lay of the land is something I didn’t do my first time visiting Lisbon. I was staying in the central part of the city, and really had no other information about the surrounding neighborhoods to visit or stay. Upon arrival, I’d definitely book a trolley tour of the city, which has hop-on-hop-off options and also comes with an audio guide.
The red tram tour was a charming way to see many of the neighborhoods around Lisbon. We met at Praça do Comércio, facing the Arch, and hopped on for an hour or so. There are a few various routes/hop off options, so be sure to chat with the driver first! If you want a more personalized experience, the Tuk Tuk tours are pretty popular for whizzing around Lisbon’s winding streets. There are also multiple booking options for these.
First Things First: What Type of Accommodation Should I Book?
Telling someone what type of accommodation to book is like telling them what to eat. Everyone has their own taste and preferences. If you want the comfort of staying in a hotel, there’s plenty of options from luxury to boutique around the city.
I recently stayed at Hotel Inn Bairro Alto, which is in one of the best neighborhoods to stay in Lisbon. I had a spacious double room with my own couch, fridge, and table area. Showers/bathrooms are shared, and there’s a lovely communal area for breakfast each morning. If you’re okay with sharing a few spaces, it’s an affordable option.
For those looking to mingle and socialize, Lisbon has a thriving backpacker scene. I stayed at Goodmorning Solo Traveler Hostel, which is right on Restauradores Square. They offer weekly activities/excursions and family-style dinners. It’s a little intimidating if you’re more of an introvert, but definitely a fun environment.
After experiencing every accommodation type in Lisbon, I’d say the best value for your money is opting for an AirBnB. In the peak month of June, my friends and I got a 5 bedroom apartment in the heart of Bairro for 4-5 nights, which worked out to be around $100/person. Many of them are extremely charming, and have incredible views of the city.
Alfama Neighborhood in Lisbon
One of the oldest and traditional neighborhoods to stay in Lisbon, Alfama offers a peek into the local way of living. Strolling the cobblestone streets, you’ll often notice tiles on some of the streets, portraying a member of a Portuguese family in the area.
Having survived the 1755 earthquake, many homes here are passed down through generations. Doors are left open in a welcoming manner, locals gather on street corners, and if you’re lucky, you’ll hear the distinctive sound of Fado music playing here and there.
While there are many viewpoints and charming cafes to stop at along the way, a visit to Alafama isn’t complete without visiting the 12th century Sé Cathedral. Continuing the trek to the top, you’ll reach the 11th-century Castelo de São Jorge. The guardian of Alfama, you’ll find some of the best panoramic views of the city from up here.
There is no entrance fee for the Cathedral, and the Castelo is 15 euros for adults.
Baixa & Rossio Neighborhood in Lisbon
The difference between Alfama and bustling Baixa is pretty obvious. Destroyed in the earthquake, this part of the city was rebuilt with many parallel streets and large squares. One of the largest of them all, Praça do Comércio, feels like a breath of fresh air from the otherwise narrow streets of Lisbon.
Many tram and trolley tours meet here, and you’ll find a slew of outdoor restaurants for people watching. (This is a touristy spot, so be vigilant for pick-pockets). One of the busiest areas in Lisbon for restaurants, sightseeing, and shopping, there’s a lot to do in Baixa.
Walking under the Arco da Rua Augusta, you’ll reach the main pedestrian road lined with stores selling cork products, restaurants, and more shops. If you’re ever lost, the Praça Dom Pedro IV (or Rossio), famed for its wave-like tiled floor using Portugal’s traditional calçada pavement stones, is one of Lisbon’s central meeting points.
Chiado & Bairro Alto Neighborhoods in Lisbon
In my opinion, Chiado and Bairro Alto are the perfect blend of both modern and traditional. It’s easy to get lost here, meandering the side streets and people watching. By day you’ll browse quaint cafes, local eateries, and small stores. By night, Bairro Alto assumes a different personality altogether, becoming Lisbon’s lovely epicenter.
Aside from eating your way through these two neighborhoods, if you have a sense of the history of the city, be sure to ride the wrought-iron public lift of Elevador de Santa Justa where you’ll see the 14th century remains of Convento do Carmo. One of the most picturesque views of Lisbon can be found here at Miradouro de São Pedro de Alcântara.
Cais Do Sodré Neighborhood in Lisbon
Like Bairro Alto, Cais Do Sodre is a bohemian neighborhood home to the infamous pink street, plenty of bars, and trendy restaurants. Near one of the main metro stops and ferry terminal, it’s always bustling with energy and locals. Time Out Market is in the center, offering a wide selection of foods and a welcoming atmosphere to socialize. (If there’s a big sports game, this is a good spot to watch on the screens).
If you’re in luck with the weather, strolling along the waterfront is a lovely way to spend the day. There are often small market stalls here, street performers, and locals relaxing by the water. This is one of the best neighborhoods to stay in Lisbon, as it’s within walking distance to all other areas mentioned above, and doesn’t have many hills..
