Where to Stay in Lisbon: Best Neighbourhoods for First Timers

If you’re knee-deep in search tabs trying to figure out where to stay in Lisbon for first time visitors, breathe easy – you’ve landed in the right place! 

By the end of this guide, you’ll be well-versed in the most inviting Lisbon neighbourhoods, understanding exactly what each offers, whether you’re a nightlife aficionado, a café connoisseur, a history lover or tagging along with a lively group of gals.

Having visited Lisbon multiple times since 2012, I’ve personally explored each best place to stay in Lisbon from the hilltops of Alfama to the bustling streets of Bairro Alto.

Lisbon is not just about its iconic yellow trams or the historic Tower of Belém (like social media would have you believe); what really draws me to this city is its dynamic blend of old-world charm and a buzzing, creative pulse. 

Despite its roots stretching back to ancient times, Lisbon feels anything but old-fashioned. It’s a city that dances to the rhythm of the present, with a lively cultural scene that continually evolves.

A handful of areas to stay in Lisbon stand out for their central location, accessibility to stunning architecture, museums, and the kind of authentic local spots that make a trip memorable. Not to mention some pretty trendy little cafes.

The best places to stay in Lisbon are not only linked by an efficient public transport network but are also compact enough to explore on foot, connecting you to the city’s heart with every step.

For first-time visitors, where to stay in Lisbon is pretty straightforward. You’ll want to base yourself in the city centre in areas like Baixa, Chiado, Bairro Alto or Alfama. 

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Where I Stay in Lisbon (and Love!)

Best Places to Stay in Lisbon Map

Understanding Lisbon’s 7 Hills

Imagine Lisbon as a city built on a series of stages, each one offering a different scene. At the base of the city is the Tagus River, and from there are the famous seven hills of Lisbon. 

Yes, that does mean you’re going to be going up and down quite a bit. The climbs can be steep, but they’re always rewarding, offering stunning views over terracotta rooftops to the river below. Most of my favourite areas in Lisbon are located up the hills and away from the tourist core.

For navigating these hills, there are the iconic yellow trams (Tram 28 is a must!), which not only add to the city’s charm but are a godsend for tired legs, winding their way through narrow streets. Then there are the elevadores or funiculars, all designed to help locals and visitors alike tackle the city’s vertical challenges.

Best Areas to Stay in Lisbon, Portugal

1. Baixa (City Center): Best Area to Stay in Lisbon for First Time Visitors

Best For | First-time Visitors, Sightseeing, Short Stays
Distance from Historical Centre | 0-10 minutes

When I first stepped into Baixa, it felt like walking through a living museum. This neighbourhood sits at the heart of Lisbon, perfectly flat compared to the city’s famously hilly terrain, making it one of the best areas to stay in Lisbon for anyone looking to explore Lisbon on foot or only staying for a couple of days.

Baixa is the embodiment of Lisbon’s post-earthquake revival, with its streets laid out in a neat grid pattern, a testament to the city’s rebirth in the 18th century.

The majestic Praça do Comércio, facing the Tagus River, is where the city’s commercial heart beats the strongest. The square is flanked by yellow Pombaline facades, and at its center stands the statue of King José I, symbolizing Lisbon’s resilience. 

From here, Rua Augusta leads you through a lively pedestrian thoroughfare, brimming with cafes, shops, and street performers, all the way to the iconic Santa Justa Lift. Baixa is chockful of top things to do in Lisbon.

For a first-timer in Lisbon, staying in Baixa means you’re never far from the action. The neighbourhood is dotted with a mix of traditional shops that have stood the test of time and modern boutiques that showcase the best of Portuguese design. 

It’s a place where every meal is an opportunity to dive into the local cuisine, with plenty of restaurants serving up the freshest catch from the Atlantic.

Choosing where to stay in Lisbon’s city center can be just as exciting. On my first visit, I found myself in a Lisbon boutique hotel that was once a traditional Portuguese townhouse. Its rooms were a blend of modern comfort and classic elements, with tall French windows that opened up to a bustling street below—perfect for people-watching over a morning cup of coffee.

Best Things to Do in Baixa Lisbon

• Walk under the famous Arco da Rua Augusta
• Stroll through Praça do Comércio, Lisbon’s majestic riverside square
• Ride the Santa Justa Lift for stunning city views
• Explore Rua Augusta‘s shops and street performances
• Check out the statue of Praca Dom Pedro IV

Best Restaurants and Cafes in Baixa

• A Brasileira – Historic cafe known for its coffee
• Casa Portuguesa do Pastel de Bacalhau – For a unique take on codfish cakes
• Confeitaria Nacional – Iconic bakery for pastéis de nata
• Ramiro – Famous for seafood
• Nicolau or Mill Sabores – New age Brunch spots
• Time Out Market – A food hall in Chiado with a variety of gourmet options
• Fado ao Carmo – Offers a modern approach to Fado dinners, combining exquisite dining with soul-stirring music

Pros & Cons of Staying in Baixa:

Best Hotels in Baixa

2. Chiado: Best Place to Stay in Lisbon for Shoppers & Coffee Lovers

Best For | Shoppers, Coffee Shop Lovers, My favourite location to stay in Lisbon
Distance from Historical Centre | 5-15 minutes walk

Chiado holds a special place in my heart as Lisbon’s cultural and literary quarter, where the charm of the old world meets the buzz of the contemporary. Nestled between Baixa and Bairro Alto, Chiado stands on one of Lisbon’s hills. Yes, this means you will have to navigate steep inclines back to your Lisbon hotel, but what this gets you is panoramic views that are quintessentially Lisbon.

Bring comfortable, grippy shoes is one of my top tips for Lisbon travel.

This neighbourhood in Lisbon is famed for its historical landmarks, like the São Carlos Opera House, the oldest of its kind in Portugal, and the National Museum, which showcases Portuguese contemporary art. The area’s literary history is palpable at every turn, notably at the iconic Bertrand Bookstore, the world’s oldest operating bookstore since 1732.

Chiado is also a shopping haven, with a mix of international brands and local boutiques lining its elegant streets. 

But what I love most about Chiado is the potential for streetside people watching around every corner. Just like Largo do Chiado, Lisbon neighbourhood’s bustling hub, where cafes spill out onto sidewalks, inviting you to sit, sip, and observe the lively goings-on.

For first-time visitors, Chiado offers an eclectic mix of cultural experiences, luxury shopping, and gourmet dining. Its central location makes it an excellent base for exploring Lisbon, with easy access to nearby Lisbon neighbourhoods and attractions. 

I recommend staying a bit further west in Chiado to get those picturesque residential streets that Lisbon is so famed for. It also has some of my favourite little trendy cafes, if that’s your thing, which makes this my favourite place to stay in Lisbon on my many return visits. Further east towards Baixa, you will start to see more modern shops and big brand stores.

The Miradouro de Santa Catarina offers breathtaking views of the city and river, making it a perfect spot for a sunset gaze.

Best Things to Do in Chiado Lisbon

• Visit Bertrand Bookstore and lose yourself in literary history
• Enjoy live performances and street artists at Largo do Chiado
• Admire the stunning views from the Carmo Convent ruins
• Explore the São Carlos Opera House and Chiado Museum
• Capture stunning city views from Miradouro de Santa Catarina
• Go photo-happy on Rua da Bica de Duarte Belo, famous for its funicular

Best Restaurants and Cafes in Chiado

• Cantinho do Avillez – Chef José Avillez’s take on modern Portuguese cuisine
• Brasileira Café – Historic café known for its literary gatherings and bica (espresso)
• Manteigaria – Offers arguably the best pastéis de nata in Lisbon
• Sea Me Peixaria Moderna – A modern seafood restaurant blending traditional Portuguese flavors with Japanese techniques
• Taberna da Rua das Flores – A quaint eatery serving inventive takes on Portuguese classics
• Breakfast Lovers for new age brunch
• COMOBA for the best coffee
• Kaffeehaus – A cozy Austrian coffee shop perfect for brunch or a casual coffee break

Pros & Cons of Staying in Chiado:

Best Hotels in Chiado

3. Bairro Alto: Best Area to Stay in Lisbon for Nightlife

Best For | Night Owls, Foodies, Young Travelers
Distance from Historical Centre | 15-20 minutes walk

Nestled atop one of Lisbon’s seven hills just north of Chiado, Bairro Alto uniquely contrasts its daytime tranquillity with the electric atmosphere of its night scene. Which, ultimately makes it the best area to stay in Lisbon for younger travellers and nightlife enthusiasts.

By day, it’s a picturesque maze of narrow streets and traditional buildings, home to independent art galleries, vintage shops, and quaint trendy cafes that invite leisurely exploration. 

As the sun sets, Bairro Alto awakens to become the heart of Lisbon’s nightlife. 

Its myriad of bars, Fado houses, and restaurants buzz with energy, drawing a diverse crowd eager to soak up the vibrant local culture. Rua da Atalaia and Rua do Diário de Notícias are particularly famed for their lively bar scene, offering everything from traditional Portuguese music to modern beats.

Best Things to Do in Bairro Alto Lisbon

• Experience authentic Fado performances in one of the many Fado houses
• Rooftop dining with incredible views at Lumi
• Barhopping along Rua da Atalaia and Rua do Diário de Notícias

Best Restaurants & Bars in Bairro Alto

• Lumi Rooftop – A rooftop bar and restaurant offering stunning views and a trendy atmosphere
• 49 da ZBD – Trendy art space with graffitied walls and DJs
• A Tasca do Chico – For an authentic Fado experience alongside traditional bites
• The Old Pharmacy – Offers a wide selection of wines and tapas in a cozy setting
• O 36 – Hip hop-themed bar

Pros & Cons of Staying in Bairro Alto:

Best Hotels in Bairro Alto

4. Alfama: Where to Stay in Lisbon for Couples

Best for | Couples, Music Lovers, History Buffs, Romantics
Distance from Historical Centre | 5-20 minutes walk

Alfama is Lisbon’s oldest quarter, a maze of narrow steep streets and alleys that echo with the soulful sounds of Fado music. This neighbourhood in Lisbon is a step back in time, with its medieval architecture, whitewashed houses, and flower-draped balconies offering a glimpse into Lisbon’s ancient past.

Stepping into Alfama feels like entering a different era, where the pace of life slows, and the city’s history unfolds around every corner. The São Jorge Castle crowns the hill, offering panoramic views over the terracotta rooftops to the Tagus River. 

Below, the winding streets lead to hidden gems like the Sé Cathedral and the Fado Museum, where the history of Portugal’s most famous musical tradition is beautifully preserved.

Alfama is perfect for those looking to experience the authentic soul of Lisbon. If you are a couple, this is where to stay in Lisbon. It’s a neighbourhood where evenings are filled with the haunting melodies of Fado emanating from intimate taverns, and the scent of traditional Portuguese dishes fills the air.

Make sure to stop and take in the views from Miradouro de Santa Luzia on the trek up to the castle. And, if you feel like saving your gams another day of sightseeing in Lisbon, board the historic Tram 28 to explore the Alfama neighbourhood.

Best Things to Do in Alfama Lisbon

• Wander around São Jorge Castle for breathtaking views and historical insights
• Visit the Sé Cathedral, Lisbon’s oldest church
• Experience the emotional depth of Fado at the Fado Museum or a local tavern
• Explore the Feira da Ladra, Lisbon’s famed flea market, for unique finds
• Enjoy the panoramic city views from the Portas do Sol and Santa Luzia viewpoints
• Ride the famous historic Tram 28

Best Restaurants and Cafes in Alfama

• Clube de Fado – Cozy ambiance with live Fado performances and traditional cuisine
• O Pitéu da Graça – Known for its authentic Portuguese dishes and friendly atmosphere
• LUDO’s – A relaxed cafe perfect for a leisurely brunch or a coffee break

Pros & Cons of Staying in Alfama:

Best Hotels in Alfama

Other Best Neighborhoods in Lisbon to Stay

5. Belem: Best Neighborhood in Lisbon for Families

Best For | Families, History Buffs
Distance from Historical Centre | 20-25 minutes by bus or tram

Belém, located slightly west of Lisbon’s city center, is a serene riverside district that combines monumental historical sites, lush parks, and interactive museums, making it an ideal area for families looking to engage with Portugal’s rich maritime heritage and enjoy relaxed outdoor activities.

This best neighbourhood is home to some of Lisbon’s most iconic landmarks. 

The Jerónimos Monastery, a UNESCO World Heritage site, is a masterpiece of Manueline architecture, while the nearby Belém Tower stands as a symbol of Portugal’s Age of Discoveries. The Monument to the Discoveries celebrates the explorers who put Portugal on the world map.

For families, Belém is a great location to stay in Lisbon as it offers spacious green areas perfect for picnics and leisurely walks. The expansive Praça do Império garden and the Tropical Botanical Garden provide beautiful settings for a day out in the sun. 

The district’s wide, pedestrian-friendly promenades along the river are ideal for strolling with a stroller or renting bikes to explore at a leisurely pace.

To reach Lisbon city centre for a day of sightseeing and to explore the best areas, simply catch the #15 tram or take any of the bus routes #727, 729, 714, 751 or 28. The ride takes about 20-25 minutes.

Things to Do in Belem, Lisbon

• Jerónimos Monastery – Explore the stunning cloisters and church where Vasco da Gama is entombed
• Belém Tower – Climb the historic tower for views over the Tagus River
• Monument to the Discoveries – Learn about Portugal’s explorers and enjoy panoramic views from the top
• MAAT – The Museum of Art, Architecture and Technology, offering interactive exhibits that fascinate both children and adults
• Visit LX Factory for those with children of young adult age

Best Restaurants and Cafes in Belem

• Pastéis de Belém – No visit to Belém is complete without tasting the original Portuguese custard tarts from this famous bakery, I prefer the tarts from Manteigaria in Lisbon’s downtown, but that’s for you to decide!

Pros & Cons of Staying Belém:

Best Hotels in Belem

6. Estrela: Best Place to Stay in Lisbon for Digital Nomads

Best For | Digital Nomads, Longer Stays
Distance from Historic Center | 20-30 minute walk

Estrela is a surprisingly fitting choice for digital nomads making their way to Lisbon. It’s quieter than the typical tourist tracks, offering a peaceful haven where work and relaxation blend effortlessly.

Imagine setting up shop in one of its trendy cafes like The Mill, Hello Kristof and Heim Cafe sipping on a strong espresso while your laptop hums away. The area’s lush Jardim da Estrela provides an idyllic escape for those afternoon brainstorms or just a sunny spot to clear your head with a good book.

While Estrela feels like a calm oasis, it keeps you connected to the pulse of Lisbon. Affordable living spaces make it easier for longer stays, and its local vibe lets you slip into the daily rhythms of Portuguese life. After logging off, you’re just a short walk or tram ride away from Lisbon’s bustling nightlife and cultural hotspots, plus you border the lively Chiado area.

For the digital nomad seeking a mix of productivity and authentic local experience, Estrela hits the sweet spot. It’s your laid-back Lisbon base, offering everything you need to work hard and play harder.

Best Things to Do in Estrela

• Relax in Jardim da Estrela, a beautiful park perfect for picnics and leisurely walks
• Visit the Basílica da Estrela, one of Lisbon’s most iconic monuments
• Stroll along the Rua de São Bento to browse antique shops and galleries

Best Cafes and Restaurants in Estrela

• Copenhagen Coffee Lab – Scandinavian-style cafe with top-notch coffee and pastries
• Tasca da Esquina – Offers creative takes on classic Portuguese cuisine
• The Mill – Popular with nomads for its coffee, brunch, and friendly atmosphere
• Nannarella Ice Cream Shop – creative ice creams, sorbets and desserts
• Restaurante Come Prima – authentic Italian cuisine

Pros & Cons of Staying Estrela:

Best Hotels in Estrela

7. Príncipe Real: Coolest Area to Stay in Lisbon

Best For | Trendy Cafes, LGBTQ+, Second Visits or Longer Stays
Distance from Historic Center | 20-30 minute walk

Príncipe Real is where Lisbon’s trendy pulse beats the loudest, offering a seamless blend of the city’s rich history with a vibrant contemporary lifestyle. This neighbourhood set atop one of Lisbon’s picturesque hills, is a magnet for those drawn to cutting-edge design, innovative cuisine, and boutique shopping. 

The centrepiece, Príncipe Real Garden, is not just a green oasis but a social hub, flanked by colourful mansions and concept stores. 

Here, the Embaixada, a neo-Moorish palace, now hosts a collective of design shops and eateries, making it a must-visit for anyone with an eye for style and creativity. Nearby, Rua Dom Pedro V is lined with unique boutiques offering everything from Portuguese-made fashion to artisanal goods.

Culinary adventurers will delight in Príncipe Real’s dining scene, where traditional Portuguese flavours meet contemporary innovation. From the buzz of organic markets to intimate eateries tucked away in cobblestoned alleys, every meal promises a discovery.

Best Things to Do in Príncipe Real Lisbon

• Picnic in the Príncipe Real Garden, surrounded by exotic plants and a giant cedar tree
• Peruse the independent boutiques and concept stores around Rua da Escola Politécnica and Rua Dom Pedro V
• Visit the Embaixada, a Moorish Revival palace turned into a shopping gallery
• Explore the National Museum of Natural History and Science
• Take in views over Lisbon at Park Eduardo VII Observation Deck

Best Restaurants & Cafes in Príncipe Real

• Atalho Real – Known for its high-quality meats and relaxed outdoor seating
• Arkhe – modern vegetarian restaurant with terrace
• Dramatico – Trendy coffee shop
• Tapisco – Spanish tapas and Portuguese snacks
• A Cevicheria – Chef Kiko Martins’ spot for inventive ceviches and pisco sours
• Pavilhão Chinês – A quirky and historic bar with rooms full of collectibles, offering a unique atmosphere for drinks

Pros & Cons of Staying in Principe Real:

Best Hotels in Principe Real

Where Not to Stay in Lisbon, Portugal

For those looking to capture the essence of Lisbon’s rich history, lively squares, and traditional Fado music, it’s advisable to stay within the more centrally located Lisbon neighbourhoods of Baixa, Chiado, Alfama or Bairro Alto.

However, it’s equally important to consider areas that might not be ideal for a typical tourist experience. 

One such area to approach with caution is the Intendente and Martim Moniz regions. While these areas have seen significant revitalization and boast a diverse cultural scene, they can still feel edgy, especially after dark, due to lingering safety concerns and a less polished atmosphere. 

Tourists might also find the Parque das Nações less appealing for a short stay; although modern and well-designed, it lacks the historical charm of Lisbon, feeling more like a business district. It’s situated farther from the traditional attractions, which could limit the immersive cultural experience many seek when visiting Lisbon. 

Where to Stay in Lisbon, Portugal FAQs

What is the best area to stay in Lisbon for first-time visitors?

For where to stay in Lisbon for first-time visitors, Baixa is the top recommendation. It’s centrally located, making it easy to walk to many of Lisbon’s iconic sites, and it’s well-served by public transport. Baixa combines historical charm with convenient access to shops, restaurants, and cafes, offering a comfortable and accessible introduction to the city.

What is the safest area to stay in Lisbon?

Baixa is often recommended for travellers to Lisbon as the safest neighbourhood. Its central location, high foot traffic, and well-lit streets at night make it one of the safer areas for tourists. Plus, it’s always bustling, ensuring you’re never alone, even after dark.

What is the best location to stay in Lisbon for families?

For families, Baixa and Belém are the best areas to stay in Lisbon. It has kid-friendly attractions, including interactive museums and spacious parks, like the Jardim de Belém. The area is quieter and more relaxed than the bustling city center, offering a safe and engaging environment for both children and adults to explore.

What is the best area to stay in Lisbon for couples?

Alfama is a fantastic choice for couples looking for the best place to stay in Lisbon. Its winding streets and ancient architecture create a cozy atmosphere, perfect for leisurely strolls. With stunning viewpoints, intimate Fado restaurants, and a slower pace of life, Alfama offers a romantic backdrop to any Lisbon visit.

Where should I stay in Lisbon for the best nightlife?

For the best nightlife, Bairro Alto is where to stay in Lisbon. This neighbourhood transforms at night, with a variety of bars, clubs, and Fado houses opening their doors to a lively crowd. It’s the perfect place for those looking to experience Lisbon’s vibrant nightlife and socialize into the early hours.

What areas in Lisbon are best for foodies?

Chiado is a good area to stay in Lisbon for foodies. This neighborhood is a culinary hotspot, featuring a mix of traditional Portuguese restaurants and modern eateries. Highlights include tasting authentic pastéis de nata at historic bakeries and exploring gourmet shops. Chiado’s upscale dining scene and trendy cafes offer a sophisticated flavour experience in Lisbon.

What is the coolest neighbourhood in Lisbon to stay?

Príncipe Real stands out as the coolest neighbourhood in Lisbon, attracting those with a penchant for trendy boutiques, contemporary art galleries, and stylish eateries. Its leafy squares and colourful mansions add to the area’s hip vibe, making it a favourite among locals and visitors seeking a blend of modernity and tradition.

Which districts in Lisbon offer the best cultural experiences?

For the best cultural experiences in Lisbon, Alfama is unparalleled. This historic district is the essence of traditional Lisbon, with its labyrinthine alleys leading to ancient churches, Fado music houses, and stunning viewpoints. It’s a living museum where every corner tells a story, making it a cultural treasure trove for visitors.

Are there any quiet, less touristy areas to stay in Lisbon?

For those seeking a quieter, less touristy stay in Lisbon, consider Lapa or Estrela. These neighbourhoods offer a peaceful retreat with elegant streets, gardens, and classic Portuguese architecture. Here, you can enjoy a more relaxed pace of life while still being close enough to visit the city’s main attractions.

How do I choose between staying in Alfama, Bairro Alto, or Chiado?

 Choosing between Alfama, Bairro Alto, or Chiado depends on your interests. Alfama is best for a historic and cultural experience with its narrow streets and Fado music. Bairro Alto offers a vibrant nightlife with numerous bars and clubs making it the best location to stay in Lisbon for younger travellers. Chiado is the best Lisbon neighbourhood for shopping and dining in a chic, lively atmosphere.

Where to Stay in Lisbon First Time Portugal Final Thoughts

So, you’ve got the scoop on where to stay in Lisbon, whether you’re all about those Insta-worthy views in Alfama, ready to dance the night away in Bairro Alto, or keen to soak up the chic vibes of Chiado.

Picking the perfect Lisbon neighbourhood is like choosing the right pair of shoes for a day out exploring – it’s got to fit just right. Whether you opt for the heart of the action in Baixa or the laid-back charm of Belém, Lisbon’s ready to welcome you with open arms and a pastel de nata in hand (of course).

At the end of the day, if you book a comfy hotel in any of the central Lisbon neighbourhoods like Baixa, Chiado, Bairro Alto or Alfama you won’t go wrong. Each of these areas to stay in Lisbon is within a picturesque (albeit uphill!) 10-minute walk of the historical centre.

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