Where to Stay in Lisbon - A Local’s Guide to the City’s Neighborhoods

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A street view of a city square and colorful buildings above it in Lisbon, Portugal.jpeg

Lisbon is one of Europe’s great cities and its popularity, which has exploded in recent years, fully reflects that.

Millions of international visitors come to Lisbon each year, and in high season, the crowds can be overwhelming. Prices shoot up, availability for everything drops, and the streets become filled with vacationers.

Despite all of this, Lisbon has maintained its authentic Portuguese charm, and it continues to captivate both visitors and locals alike with its breathtaking sunsets, colorfully tiled buildings, lovely architecture, and delicious cuisine.

The Portuguese capital is one of the oldest cities in Europe, and although much of it was destroyed during an earthquake in 1755, some neighborhoods (like Alfama) survived the destruction and remain beautifully preserved. Other areas were rebuilt and have been continuously modernized over the centuries, which gives Lisbon an eclectic neighborhood make-up.

Keeping in mind the potential crowds as well as the drastically varying neighborhood atmospheres, it’s important to choose a good base in the city that maximizes your sightseeing time and aligns with the character and ambiance that you’re looking for.

Each area of Lisbon has a distinct feel, and the surroundings in each range from historical attractions, busy commercial centers, family-friendly parks, and lively cocktail bars.

To help you figure out the right neighborhood for your trip, I’ve put together an overview of some of my favorite Lisbon neighborhoods along with with hotel and restaurant recommendations, and some of the top sights in each area.

Whether this is your first time in Lisbon or you’re a repeat visitor, I’ve got you covered!

More Portugal travel info:

For more information on visiting Portugal, check out our guide on where to stay in Porto and our list of 40 beautiful places in Portugal.

If you could use some one-on-one help planning your itinerary, schedule a Portugal travel consultation with one of our Local Experts!



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City tours by foot or car
Palaces of Sintra & Cascais
Day trips all over central Portugal
Explore Lisbon with our favorite local guide!
Connect with lifelong Lisbon native Ana Sofia for a private guided tour!

City tours by foot or car
Palaces of Sintra & Cascais
Day trips all over central Portugal

Local help with your planning

If you could use some help coming up with a great plan for your visit to Lisbon (and Portugal more broadly), schedule a Portugal travel consultation one of our Local Experts!

These are one-hour Zoom calls where you’ll get to chat with a Portugal-based travel pro about the trip you’re planning and they’ll share their tips and advice, answer your travel questions, and help you perfect your itinerary.


Map of Lisbon’s Neighborhoods

My recommended neighborhoods are spread around Lisbon, so I’m including the map below to give you a quick look at where each one is.

If you want to see all of Lisbon’s central neighborhoods in a quick morning or afternoon, go on a private guided tour with our favorite local guide Inês!


Best Areas to Stay in Lisbon

If you find yourself wondering where to stay in Lisbon, you’re not alone! This is a big city with top attractions and places of interest spread all throughout it, so choosing a base can be difficult.

Lisbon has also started to succumb to over-tourism in recent years, so certain central neighborhoods which would have once been great places to stay in, aren’t always ideal any longer if you’re looking for an authentic experience.

Of course, choosing a central base, or one that’s well connected to public transport is still essential, as you don’t want to lose hours every day just trying to get between your accommodation and the sights. Lisbon is extremely walkable and it has an excellent public transportation system though, so you can usually move through the city efficiently and quickly.

So as long as you’re close to a convenient subway, tram, or bus line, or are staying in a relatively central neighborhood, you don’t really need to stress over whether the exact location of your accommodation is perfect. Instead, you should focus more on what the neighborhood is like and whether it has the atmosphere that you’re looking for.

Lisbon is definitely a city of neighborhoods, and there are very distinct boundaries and widely varying characters from one to the next. Which area is right for you will depend on your goals for your visit.

To give you a few examples, Alfama has beautiful and historic architecture, but it’s packed with tourists day and night. Belém is filled with monuments and history, but it’s a bit away from the center and isn’t very residential. Baixa and Chiado are as central as it gets, and are shopping and sightseeing meccas. If you’re here to party, Bairro Alto is where the action is. And for a local, residential feel, Avenidas Novas or Graça are great choices.

There’s a lot to consider, so below I’ve put together a detailed guide to 8 of my favorite neighborhoods in Lisbon. Happy reading!

*For any readers coming from Germany or Austria, you might also check out this very helpful post on things to do in Lisbon all written in Deutsch!


1. Alfama & Mouraria

Best for: History lovers and those looking for a postcard view of Lisbon

Red tile roofs and the twin spires of Sao Vicente de Fora church and the dome of the Panteao Nacional seen from the Santa Luzia viewpoint in Lisbon's Aflama district.

Lisbon seen from the Miradouro de Santa Luzia viewpoint in Alfama

You can’t help from taking out your camera when wandering around Alfama. Whether you’re snapping shots of the river views or of the pastel-colored buildings, this is Lisbon’s most picturesque neighborhood.

It’s packed with tourists, many or whom can be found lining up to get the best selfie at the Miradouro de Santa Luzia or to catch a ride on the 28 tram. The tram has become so popular that it’s now a tourist attraction in its own right, much to the detriment of the locals, who can barely squeeze in sometimes.

Most of Alfama’s charm comes from being the oldest district in the city, having survived the earthquake of 1755. Many residents have lived here for decades or generations, but with the current tourism boom, landlords have begun turning their homes into short-term rentals, forcing out many of the longtime residents.

Those who remain get by by selling ginjinha (sour cherry liqueur) shots from their windows or running the few traditional cafés that haven’t yet been squeeze out by stylish brunch spots.

A view of waterfront Lisbon and the Tagus river seen from a viewpoint in the Alfama district.

The Aflama district and watefront

People dining at a table in a very narrow alleyway of Lisbon's Alfama district.

One of Alfama’s countless narrow alleys

Those downsides shouldn’t necessarily dissuade you from staying here though. The neighborhood is beautiful, and getting lost in the maze of narrow streets is a delight. Forget directions: just start walking aimlessly and admire your surroundings. Of course, you can also visit historical monuments like the Sé, Lisbon’s cathedral, or try your hand at haggling at the flea market held every Tuesday and Saturday near the pantheon.

In June, the entire neighborhood smells like sardines as locals come together to celebrate the Santo António festivities with a big outdoor barbecue. There’s music all night long during the festival, so keep that in mind if you plan on staying here (or even living here) in the summer.

Attached to Alfama is Mouraria, a multicultural neighborhood where Indian spice shops, Chinese restaurants, and African grocers stand side by side. This is where we locals go when we’re in the mood for a curry or want to pick up ingredients to cook one at home. You’ll also find a mix of long-standing Portuguese restaurants, such as Zé da Mouraria, and up-and-coming spots like O Velho Eurico.

My favorite hotels in Alfama & Mouraria

  • Memmo Alfama — Tucked away in a small alley, this modern hotel offers rooms with breathtaking views of the river and the Panteão Nacional. The swimming pool is a treat for those hot summer days ($250-350).

  • Solar do Castelo— Located inside the castle grounds, this four-star hotel oozes character with exposed stone walls, wooden ceilings, and antique furniture. Peacocks occasionally wander outside the building ($250-350).

  • This is Lisbon Hostel- Offering a mix of dorms and private rooms, this hostel is a good alternative for those traveling on a budget. Facilities include a communal kitchen, a lounge and a rooftop with fantastic city views ($30 dorm, $100 private room).

People walking on the sidewalk with tuk tuks in the street at a steep intersection in Lisbon's Alfama district

Alfama

Things to see & do in the neighborhood

Sé de Lisboa, Panteão Nacional, Feira da Ladra, Castelo de São Jorge, Museu de Artes Decorativas Portuguesas, Miradouro de Santa Luzia, Miradouro das Portas do Sol, Igreja de São Vicente de Fora, Museu do Fado, Mural de Amália Rodrigues, Casa dos Bicos, Museu do Aljube, Igreja de Santo António 

My restaurant suggestions in Alfama & Mouraria

  • O Velho Eurico — Sample a mix of Portuguese petiscos (small dishes to share) at this lively spot in the heart of Mouraria. Reservations are a must.

  • Zé da Mouraria — Portions at this traditional Portuguese restaurant are big enough to share. Try the roasted codfish or garlic steak. 

  • Sem Restaurant — Sem offers a seasonal tasting menu with ingredients from local regenerative producers paired with natural wines, craft beer, or specialty cocktails.

  • Santa Clara dos Cogumelos — Mushrooms are the heart of the menu at this charming restaurant near the Panteão Nacional.

  • Taberna Sal Grosso — This cozy tavern serves traditional treats with a contemporary twist.

2. Avenidas Novas

Best for: Families and couples looking for a quieter atmosphere

Avenida da Liberdade street and the surrounding grand buildings in the Avenidas Novas section of Lisbon on a rainy day.

Avenida da Liberdade near Marques de Pombal square on a rainy day

Moving away from the center, Avenidas Novas is a pleasant neighborhood renowned for its wide boulevards, well-kept parks, and classic buildings. It’s one of the newest districts in Lisbon, so don’t expect to find many historical sites here though. This is a “functional” neighborhood, and it’s mostly filled with homes and offices.

During the week, the streets are bustling with people heading to and from work, and during lunchtime, the restaurants fill up with workers on their lunch breaks. Come the weekend, though, you’ll find mostly families and couples who come to check out the exhibits at the Calouste Gulbenkian’s art museums or wander through its charming gardens, which are home to turtles and ducks.

Another popular attraction is the semi-tropical greenhouse, Estufa Fria. Beyond the neighborhood’s greenery, you can shop for high-end brands at the El Corte Inglés department store, pick up the latest indie mag at Under the Cover, or grab a pastry at the century-old Pastelaria Versailles, a must-visit if you’re in the area.

This district is quite flat compared to other Lisbon neighborhoods, which makes it ideal for families with kids. Well-served by public transportation, you can hop on the metro and reach the city center in 20 minutes.

Avenidas Novas is not an obvious choice for first-time visitors, but it’s an excellent alternative to some of the more popular and central neighborhoods, especially if you don’t love being surrounded by crowds every time you step out the door. 

My favorite hotels in Avenidas Novas

  • EPIC SANA Lisboa Hotel — A five-star hotel near Parque Eduardo VII featuring a rooftop pool, a spa, and a gym ($300).

  • H10 Duque de Loulé — Occupying an 18th-century building, this hotel stands out with its blue-and-white tile accents. Many rooms offer lovely city views ($225).

  • ibis Lisboa José Malhoa — One of the cheapest alternatives in the area, this hotel offers modern rooms, a restaurant, and a bar. Pets are allowed upon request ($100).

A view over Lisbon from the viewpoint in Parque Eduardo VII going over the manicured greenway and past Marques de Pompbal square.

A view over Lisbon from the viewpoint in Parque Eduardo VII

Things to see & do in the neighborhood

Parque Eduardo VII, Estufa Fria, Fundação Calouste Gulbenkian, Casa Museu Dr. Anastácio Gonçalves, Praça Marquês de Pombal, Jardim Zoológico de Lisboa, Campo Pequeno Bullring

My restaurant suggestions in Avenidas Novas

  • Fogo by Alexandre Silva — The well-known chef Alexandre Silva is behind this restaurant, where everything is cooked over a wood fire, from oysters to prawns and steaks.

  • Lota d’Ávila — Fresh fish and seafood are the specialities at this colourful restaurant near Fundação Calouste Gulbenkian.

  • Galeto — Open since 1966, this traditional restaurant serves everything from breakfast to late-night meals.

  • Pastelaria Versailles — This century-old spot stands out with its classic decor. It is renowned for its pastry selection, but they also serve meals and homemade ice cream.

Eat your way through Lisbon on a city center food tour!

Spend a half-day wandering Lisbon's maze of twisting alleys while also trying all the city's best local treats with our favorite guide, Ana Sofia!


3. Baixa & Chiado

Best for: Visitors short on time who want to stay close to the action

Crowds of children in blue t shirts in the middle of the wide and grand Praça do Comercio in Lisbon's Baixa-Chiado neighborhood.

Praça do Comercio square

It doesn't get any more central than Baixa and Chiado. When the 1755 earthquake hit Lisbon, this was one of the most affected areas. Most of the neighborhood was rebuilt following a plan by the Portuguese statesman Marquês de Pombal, who transformed it into a commercial zone. In part because of that, not many people live here.

Indeed, this remains mostly a shopping area, where you’ll find your ubiquitous Zara’s and H&Ms, as well as luxury brands like Gucci and Louis Vuitton. Sadly, rising rents and increased competition from international brands have forced many of the traditional Portuguese stores that you used to find here to close down in last few years.

For now, you can still find a few though, like the Luvaria Ulisses, which specializes in custom-made gloves, the Bijou haberdashery, or the Livraria Bertrand, one of the oldest bookshops in the world.

You’ll find that Chiado in particular has deep literary roots, and its fair share of bookstores. This is the area where writers like Fernando Pessoa used to hang around in cafés like A Brasileira, which is now packed with tourists (it’s still pretty pleasant though).

Praça Luis de Camões square and its monument surrounded by grand buildings and trees in Lisbon's Chiado district

Praça Luis de Camões square

There are lots of other attractions here apart from shopping, such as the monumental square of Terreiro do Paço, where most walking tours depart from. The stunning gothic-style railway station of Rossio is also here, and you should absolutely check it out, even if you’re not taking a train.

Just about everything that you’re likely to want to see in Lisbon is within walking distance from here, and it’s also perfectly located for taking day trips to Sintra, Cascais, and beyond, as the Rossio station has direct trains to many nearby destinations.

If you’re interested in fine dining, there are at least three Michelin-star restaurants in the neighborhood (see below for specifics). And for a bit of culture, you can head to one of the many neighborhood theaters or cinemas. We’re especially keen on the local film festivals, like Indie Lisboa and Monstra, so if you like cinema, be sure to check out whether those are happening during your visit.

My favorite hotels in Baixa and Chiado

  • The One Palácio da Anunciada — This luxury hotel feels like an oasis in the city, with its French-style gardens, large swimming pool and a spa ($500).

  • Hotel do Chiado — Designed by award-winning architect Siza Vieira, this hotel is only a few steps from Chiado's main shopping streets. Many rooms offer castle and river views ($200-300).

  • Home Lisbon Hostel — Surrounded by cafés and souvenir shops, Home Lisbon is the perfect choice for those traveling solo or with a group of friends ($50 dorm, $150 private room).

Rua Augusta street

Santa Justa elevator

Things to see & do in the neighborhood

Arco da Rua Augusta, Rua Augusta, Terreiro do Paço, Elevador de Santa Justa, Praça Luís de Camões, Convento do Carmo, Avenida da Liberdade, Praça dos Restauradores, Praça Dom Pedro IV, Praça da Figueira, Estação Ferroviária do Rossio, Museu Nacional de Arte Contemporânea, Livraria Bertrand (Chiado), Sociedade de Geografia de Lisboa

My restaurant suggestions in Baixa and Chiado

  • As Bifanas do Afonso — This is the perfect spot to order Lisbon’s traditional pork sandwich — the bifana.

  • Casa do Alentejo — Behind the unassuming facade of Casa do Alentejo is a stunning Moorish-style building. The two restaurants on-site specialise in the regional cuisine of the Alentejo.

  • Alma — A Michelin-star restaurant run by Chef Henrique Sá Pessoa.

  • Belcanto — Considered one of the best restaurants in the world, this two-Michelin star restaurant led by Chef José Avillez gives a modern twist to traditional Portuguese dishes.

  • Prado — A farm-to-table restaurant offering a mix of meat and seafood dishes.

  • Oven Lisboa — Indian and Nepalese cuisine with a touch of luxury.

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4. Bairro Alto

Best for: Night owls and young-spirited visitors

A view of over Lisbon with a sliver of the Tagus river as seen from the Sao Pedro de Alcantara viewpoint in Lisbon's Bairro Alto district.

The view from Miradouro São Pedro de Alcântara viewpoint

A night out in Bairro Alto is a rite of passage for anyone who has grown up in Lisbon. It’s all about bar-hopping here, grabbing a shot at one place and a cheap cocktail from the next.

The bars are tiny, so everyone spills onto the streets, clutching their glasses as they push through the crowd. There are people of all ages, but the nightlife here is especially popular with students and the occasional bachelor party.

If you’re in town to party, you’ll probably end up in Bairro Alto or Bairro as we like to call it. Start your evening by watching the sunset at one of the local viewpoints — a must-do while in Lisbon. Then grab dinner somewhere nearby before hitting the bars. There are plenty of dining options to choose from, ranging from traditional Portuguese restaurants to Mexican and Korean. 

Note that many houses in this area have thin walls, so don’t expect to get a quiet night’s sleep if you’re staying here, especially during the weekend. With that said, the neighborhood is pretty quiet in the mornings and it’s only a few minutes walk from the city center, so you can get into town for sightseeing and exploring quite quickly and easily.

During the day, you can also visit many independent boutique shops or art ateliers like Oficina Marques with their infamous repurposed woodwork. And if you feel like having a cheeky pastel de nata, there’s no better place than Manteigaria.

My favorite hotels in Bairro Alto

  • Bairro Alto Hotel — Facing Praça Luís de Camões, this hotel sits between Chiado and Bairro Alto.  It offers spacious rooms inspired by Lisbon's colorful surroundings ($350-500).

  • The Lumiares Hotel & Spa — Suites and apartments come with equipped kitchens at this five-star hotel, complete with a rooftop bar, restaurant and a spa ($300-500).

  • Selina Secret Garden & Cowork — An ideal spot for young travellers working remotely, Selina offers a co-working space and multiple events like yoga and DJ sets ($100).

A street in Lisbon's Bairro Alto neighborhood at nighttime, with a tram

The tram in Bairro Alto

Things to see & do in the neighborhood

Miradouro São Pedro de Alcântara, Miradouro de Santa Catarina, Igreja de São Roque, Elevador da Bica, Elevador da Glória, Museu da Farmácia, Convento dos Cardaes

My restaurant suggestions in Bairro Alto

  • A Nossa Casa — Open for dinner only, this casual spot offers a mix of local and international dishes.

  • Essencial — An upscale restaurant serving modern dishes inspired by French cuisine.

  • Las Dos Manos — Mexico meets Japan at this trendy restaurant run by Chef Kiko Martins.

  • Casanostra — One of the oldest restaurants in Bairro Alto, Casanostra specialises in homemade Italian dishes, from pasta to seafood.

  • 100 Maneiras — A Michelin-star restaurant serving tasting menus inspired by the chef’s Bosnian roots with a few Portuguese touches.

  • Tantura — Delicious Mediterranean dishes like hummus and falafel are the focus of this cosy spot in the heart of Bairro Alto.


5. Belém

Best for: Urban explorers, history lovers, and families

Lisbon's Torre de Belem and the Tagus river under a cloudy blue sky in April, 2023.

Torre de Belém

Hugged by the Tejo river, Belém is where you’ll find most of Lisbon’s museums and many old landmarks that are connected to the country’s maritime roots. Because of this, it’s often full of tourists.

You'll see people queuing up to visit the Gothic-style monastery, Mosteiro dos Jerónimos, or to taste the original custard tart from the Antiga Confeitaria de Belém. Although the shop has become quite touristy, locals also like to grab a pastel de nata from there whenever passing through the neighborhood.

The neighborhood’s most recent attraction is MAAT, a contemporary museum dedicated to the intersection between art and technology. The art exhibits here are quite interesting, but the even bigger draw is watching the sunset from the museum’s wavy rooftop (which is free to access). 

From the museum, you can walk along the riverfront promenade or even cycle to the city center, which is a few miles east about 30 minutes away. Of course, there’s also public transport if you’re running short on time.

There are only a few hotels in this area, and most are pretty high-end, so unless you plan on splurging during your stay, you’re probably best off staying somewhere else and heading here just for a day trip.

The biggest perks of staying in Belém are that you can get to the monuments very early (before the crowds) and it’s a bit closer to the Cascais coastline than the city center (20-minute train ride). Even so, it’s probably advisable to stay somewhere else and just come here for a visit.  

If you want to see Belem like a local, our favorite guide Ana Sofia offers a private walking tour that takes in the main highlights along with some hidden gems.

My favorite hotels in Belém

  • Altis Belém — Facing the river, this luxury hotel features a Michelin-star restaurant, swimming pools and a spa ($350).

  • NAU Palácio do Governador — Set in a 17th-century mansion, this hotel is a short walk from Torre de Belém. Facilities include a restaurant, bar, outdoor pool, gym and spa ($275).

  • Jerónimos 8 — An affordable option right next to the Mosteiro dos Jerónimos offering modest rooms ($150).

The impressive Padrao dos Descobrimentos monument with no one around on a sunny day in Lisbon.

The Padrão dos Descobrimentos monument

People in line to purchase pasteis de nata at the famous shop in Belem, Lisbon.

Getting pasteis de nata pastries in Belém

Things to see & do in the neighborhood

Mosteiro dos Jerónimos, Torre de Belém, Padrão dos Descobrimentos

MAAT, Museu Nacional dos Coches, Centro Cultural de Belém, Museu de Marinha, Antiga Confeitaria de Belém, Jardim Botânico Tropical, Adega Belém Urban Winery, Quake, Palácio Nacional de Belém, Museu de Arte Popular, Museu Nacional de Arqueologia

My restaurant suggestions in Belém

  • Pão Pão Queijo Queijo — Serving a variety of baguettes, this is a great spot for a quick bite between sightseeing.

  • Taberna dos Ferreiros — A family-run restaurant with traditional cuisine, serving a few codfish-based dishes.

  • Prova-Enoteca — For petiscos paired with a vast selection of Portuguese wine

  • O Frade — A modern restaurant serving dishes inspired by the Alentejo region.

  • Darwin’s Café — With a terrace overlooking the river, this is a great place to catch the sunset while sampling contemporary Portuguese food.

Long lines outside the Mosteiro dos Jeronimos in Lisbon's Belem district.

Mosteiro dos Jerónimos

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6. Alcântara, Estrela & Madragoa

Best for: Remote workers, foodies, and families with kids

The April 25 Bridge in Lisbon, seen from the riverfront of the Alcântara neighborhood

April 25 bridge in Alcantara

With trendy cafés, picturesque gardens, and urban art murals, these three neighborhoods offer more of an alternative vibe. Together they form a kind of triangle, with Alcântara and Madragoa lining the riverfront, and Estrela sitting on the tip of the hill.

In the old port of Alcântara, life still revolves around the docks, with skaters and runners taking over the waterfront and people playing Padel under the 25 de Abril bridge. If you don’t mind heights, you should absolutely head up in the Pilar 7 elevator for outstanding panoramic views. 

Alcântara is also home to creative hubs like LX Factory, a former textile factory that now houses a mix of boutique shops and restaurants. It’s here that you’ll find one of Lisbon’s most stunning bookstores, Ler Devagar. Even if you’re not picking up a book, it’s worth stepping inside and exploring this industrial-style space. Don’t miss the record shop on the top floor too!

Meanwhile, Estrela and Madragoa are packed with design stores and specialty coffee shops where you can grab a coffee and go or kill a couple of hours. Many of Lisbon’s digital nomads and remote workers hang around here, so you’ll see lots of people with their laptops out.

Estrela is also a popular area among expat families, as there are many parks and international schools nearby. A favorite spot is the Jardim da Estrela, a charming garden with a few kiosks and a playground. It’s always a pleasure to wander around here for a drink or to catch the crafts and design market on the first weekend of the month.

My favorite hotels in Alcântara, Estrela & Madragoa

  • Olissippo Lapa Palace — A luxury hotel housed in a 19th-century palace featuring a spa, two pools, and stunning river views ($600).

  • York House — This boutique hotel is conveniently located next to the Museu Nacional de Arte Antiga and several cafés ($150-200).

  • LX Hostel — Located inside the LX Factory, this is an ideal choice for travelers on a budget. Pets are welcome ($40 dorm, $100 private room). 

People lounging on the grass and surrounded by bright green and pink trees on a sunny day in Lisbon's Jardim da Estrela park.

Jardim da Estrela park in Estrela

Things to see & do in the neighborhood

Basílica da Estrela, Jardim da Estrela, Lisbon Green Street, Mercado de Campo de Ourique, Cemitério dos Prazeres, Museu Nacional de Arte Antiga, Pilar 7, LX Factory, Museu Arte Deco, Docas de Alcântara, Museu da Carris, Museu do Oriente, Palácio Nacional da Ajuda, Tapada das Necessidades 

My restaurant suggestions in Alcântara, Estrela & Madragoa

  • O Mercado — Fresh fish is the speciality at this restaurant located inside Alcântara's food market.

  • Último Porto — Hidden between shipping containers, this is one of the best places for grilled seafood in Lisbon.

  • Sofia’s Place — A black-owned restaurant serving delicious dishes from Cape Verde, Portugal and Brazil.

  • Senhor Uva — Natural wines paired with modern vegetarian dishes are the focus of this cozy spot near Jardim da Estrela.

The Campo de Ourique market on a sunny April day in Lisbon.

Mercado de Campo de Ourique market (Campo de Ourique/Estrela)

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7. Graça

Best for: Repeat visitors looking for a more local atmosphere

An aerial view of central Lisbon including, the Mouraria, April 25 bridge, Tagus river, and  Sao Jorge castle seen from Miradouro Nossa Senhora do Monte in Graça.

All of Lisbon seen from Miradouro Nossa Senhora do Monte in Graça

Set on a hill, Graça offers some of the best views in town. This picturesque neighborhood is only a few minutes up from historic Alfama, but it has a very different atmosphere, with cozy wine bars, dog-friendly gardens, and colorful murals that keep popping up on every corner almost daily.

This is one of our favorite areas in Lisbon, and although the neighborhood has changed significantly in the last 10 years, it retains much of its down-to-earth charm.

The traditional restaurants and shops are still here, but the area has become much trendier in recent years, which is evident from the many brunch spots and natural wine bars. There’s plenty to do here, from thrift shopping at Humana, to watching the sunset at Miradouro da Senhora do Monte, or catching an open-mic session at Camones.

What makes Graça special, however, are the little villas like Vila Berta and Estrela d'Ouro. Originally built as an area for workers, these are like a neighborhood within a neighborhood, with cute terraced houses and tiled facades.

If you’ve visited Lisbon before and have already covered most of the monuments, or if you just like staying in pleasant local areas, this is a great place to soak in the atmosphere and see local life. Some people like the area so much that they rarely leave the neighborhood.

My favorite hotels in Graça

  • Santa Clara 1728 — With only six suites, this upscale hotel is ideal for a romantic getaway. It’s located between Alfama and Graça.

  • Albergaria Senhora do Monte — Just a few steps from the Miradouro da Senhora do Monte, this three-star hotel offers rooms with incredible city views ($180).

  • Tings Lisbon — An affordable B&B featuring 16 rooms and a cozy outdoor patio ($120).

A busy, leafy square full of tables and people having a drink in Lisbon's Graça neighborhood.

A square in Graça

Things to see & do in the neighborhood

Igreja da Graça, Miradouro da Graça, Miradouro Senhora do Monte, Jardim da Cerca da Graça

My restaurant suggestions restaurants in Graça

  • Altar — Altar specializes in Portuguese dishes cooked in a wood-fired oven.

  • A Taberna do Mar — A fusion restaurant combining Portuguese and Japanese seafood.

  • L’APE — Lively Italian bar serving delicious bruschettone, piadinas and paninis.

  • Café Mortara — Sample fresh handmade pasta at this colorful café.

  • Tasca Pete — Fried chicken with habanero honey and blue cheese focaccia are some of the innovative dishes coming out of this restaurant run by a British expat.


8. Príncipe Real

Best for: Shopping, foodies, LGBTQ+ community

The leafy and tree-filled Praça da Alegria square on a sunny day in Lisbon's Principe Real neighborhood.

Praça da Alegria square in Principe Real

Príncipe Real is one of Lisbon’s most upscale neighborhoods, where independent boutique shops mix with stylish cocktail bars and restaurants. It’s also a haven for the LGBTQ+ community who head here to party at legendary clubs like Trumps or Finalmente.

Among its rows of elegant buildings is the Embaixada, a 19th-century palace now converted into a shopping gallery where local creatives show off their work. The nearby neighborhood gardens are a great place to unwind after a workday or a shopping spree.

Weekends around here kick off with a drink at the local kiosk, followed by a visit to the farmer’s market, the Mercado Biológico. Even if they don’t live in the district, many people head here just to get their organic fruit and vegetables.

My favorite hotels in Príncipe Real

  • Memmo Príncipe Real — Located near the neighborhood gardens, this five-star hotel offers modern rooms, an outdoor pool and a cocktail bar with panoramic city views ($450).

  • 1869 Principe Real — This B&B stands out with its red tile facade. It offers nine rooms and suites, some of which feature private balconies ($300).

  • Independente Príncipe Real — Set in a 19th-century building, this stylish hostel offers a mix of dorms and suites. There are two restaurants on-site, including one on the rooftop overlooking the castle (private room $150).

The tree-lined sidewalk in the median of Avenida da Liberdade in Lisbon's Principe Real neighborhood.

Avenida da Liberdade, Principe Real’s main avenue

Things to see & do in the neighborhood

Jardim do Príncipe Real, Embaixada, Mercado Biológico, Museu Nacional de História Natural e da Ciência, Jardim Botânico de Lisboa, Reservatório da Mãe d'Água das Amoreiras 

My restaurant suggestions in Príncipe Real

  • Pica Pau — Sample Portuguese dishes inspired by old-style recipes, including codfish cakes, octopus and pica-pau (loin strips).

  • Faz Frio — It's first-come, first-served at this traditional restaurant featuring private booths.

  • Atalho Real — Burgers and steaks are the speciality of this restaurant inside the Embaixa palace.

  • Enoteca LX — A unique wine bar set inside the old vaults of Lisbon's aqueduct serving Portuguese wines and tapas inspired by Brazilian cuisine.

  • Âmago — There's only one table at this modern restaurant serving curated tasting menus. 

Explore Lisbon with our favorite local guide!
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City tours by foot or car
Palaces of Sintra & Cascais
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Explore Lisbon with our favorite local guide!
Connect with lifelong Lisbon native Ana Sofia for a private guided tour!

City tours by foot or car
Palaces of Sintra & Cascais
Day trips all over central Portugal
View of Lisbon from Miradouro de Alcantara
Guided tours of Lisbon with Ana Sofia!
City center tours
Sintra & Cascais
Lisbon day trips

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