Where to Stay in Lisbon: Best Areas & Neighbourhoods

Having lived in Lisbon for several years, there are certain neighbourhoods I would recommend staying in without hesitation, and others that I love visiting but probably wouldn’t choose as a base.

When I first visited Lisbon in 2016, before eventually moving to Portugal, I stayed in Chiado. For a first trip, it was a brilliant location. I was right in the historic centre and could walk to so much of the city. I would still happily recommend Chiado today, although after getting to know Lisbon properly, there are a few other areas I would consider too.

If I were visiting Lisbon for the first time now, Avenida da Liberdade would probably be my first choice. It’s central and extremely well connected, but considerably calmer than the busiest parts of downtown. The avenue itself is beautiful, with mature trees, traditional Portuguese calçada, kiosks and some excellent hotels.

Príncipe Real is another neighbourhood I love, particularly for its restaurants, bars and boutiques. And if you’d prefer somewhere less touristy, Avenidas Novas, Saldanha and Picoas are well worth considering. I lived around this part of Lisbon before moving closer to Estoril and still think it’s a great location.

On the other hand, I wouldn’t personally book accommodation in Alfama or Bairro Alto, despite both being among Lisbon’s best-known neighbourhoods. They’re absolutely worth exploring, but visiting an area and actually staying there are two very different things.

Below, I’ve broken down the Lisbon neighbourhoods I’d genuinely consider booking, what each one is like, and a few popular areas where I’d personally stay elsewhere.

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Where Would I Stay in Lisbon?

If I were narrowing it down for friends or family travelling to Lisbon, this would be my shortlist:

• Avenida da Liberdade & Marquês de Pombal – my first choice for most first-time visitors. Central, beautiful, calmer than the historic centre and very well connected.
• Chiado – an excellent alternative if you want to be right in the middle of historic Lisbon and able to walk to many of the major sights.
• Baixa – very convenient for sightseeing and one of the easier central areas if you want to avoid some of Lisbon’s steeper streets.
• Príncipe Real – one of my favourite Lisbon neighbourhoods, particularly for restaurants, bars, boutiques and a more stylish neighbourhood feel.
• Avenidas Novas, Saldanha & Picoas – where I used to live and an area I still really like. It’s less touristy, generally easier to navigate and very well connected to the centre by metro.

A Quick Word About Lisbon’s Hills

Lisbon is famously hilly, but I wouldn’t choose a neighbourhood based on hills alone.

It depends just as much on what you’re planning to see and how you intend to get around.

For example, staying in relatively flat Baixa doesn’t help much if your plan for the morning is to walk all the way up to Graça. Equally, you can stay somewhere higher up and use the metro, tram, taxi or Uber rather than tackling every hill on foot.

The important thing is to look at the exact location of your accommodation and think about how it fits with your plans.

That said, there are areas where the terrain genuinely affects the experience. Alfama and Castelo have steep, narrow cobbled streets and plenty of stairs, while much of Avenida da Liberdade, Baixa and Avenidas Novas is considerably easier to navigate.

If you’re planning to rely heavily on public transport, my Lisbon public transport guide explains the metro, trams, trains and other options in more detail.

The Best Areas to Stay in Lisbon

1. Avenida da Liberdade & Marquês de Pombal – My Top Choice for First-Time Visitors

If I were recommending one area to somebody visiting Lisbon for the first time today, I would probably start with Avenida da Liberdade.

It’s central, but it doesn’t feel as frantic as parts of Baixa and Chiado.

The avenue runs between Restauradores and Marquês de Pombal and is one of the most attractive major streets in Lisbon. It’s broad and tree-lined, with beautiful Portuguese calçada pavements, kiosks dotted along the avenue where you can stop of for a relaxed glass of wine, beer, cup of coffee or some tea as you watch the world go by, restaurants, hotels and designer stores.

I’ve always loved walking along here and every season feels uniquely different from the other.

You still feel very much as though you’re in central Lisbon, but there is more space and greenery around you. In the evenings it also tends to feel calmer than the narrow streets around the main tourist centre.

Location-wise, it works extremely well. Walk downhill and you’ll reach Restauradores and Rossio, with Baixa and Chiado beyond. Or simply use the metro when you don’t feel like walking.

Around Marquês de Pombal you’re also close to Parque Eduardo VII, while Príncipe Real is within walking distance in the opposite direction.

Best for: first-time visitors, couples, luxury stays, shopping and anyone who wants to be central without staying in the busiest part of historic Lisbon.

Where to stay around Avenida da Liberdade

• Valverde Lisboa Hotel & Garden – one of the loveliest boutique luxury options directly on Avenida da Liberdade.
• TURIM Boulevard Hotel – another very central option directly on the avenue.
• BessaHotel Liberdade – well positioned towards the lower end of Avenida.
• H10 Duque de Loulé – slightly farther up around Marquês de Pombal and a good option if you’d prefer to be just outside the busiest central streets.

→ Compare places to stay around Avenida da Liberdade

There are also some good rooftop options around here. H10 Duque de Loulé’s Limão rooftop is one example if you want a drink with beautiful views across Lisbon.

2. Chiado – Best for Staying in the Centre

Chiado would be my next choice, particularly for somebody who wants to step outside their hotel and immediately feel that they’re in historic Lisbon.

It’s also where we stayed when we first visited Lisbon in 2016.

At that point I obviously didn’t know the city nearly as well as I do now, but looking back, Chiado was a fantastic base for that first trip. I could walk almost everywhere I wanted to explore and had restaurants, cafés, bars and shops right outside.

You’re within easy walking distance of Baixa, Bairro Alto, Cais do Sodré and Príncipe Real, while Baixa-Chiado metro station gives you easy connections farther across Lisbon.

Chiado can get busy though, but this really does depend on the street. Rua Garrett and the area around Praça Luís de Camões can be packed at certain times of day, while other streets only a short distance away feel much calmer.

Best for: first-time visitors, couples, short stays and anyone who wants to explore much of central Lisbon on foot.

What I like around Chiado

One of my favourite little areas is Largo do Carmo, the beautiful square beside the ruins of the Carmo Convent.

The convent itself is worth seeing too, but this area also hosts occasional cultural events. The ruins have been used for immersive light and video-mapping displays such as Lisbon Under Stars, although these aren’t permanent, so check what’s on offer during your visit.

Just behind the convent you’ll also find Carmo Rooftop. During the warmer months, Cine Society has hosted open-air cinema nights here, with the Lisbon rooftops and Carmo ruins as the backdrop. Check the current programme to see what’s running during your visit.

Beyond Carmo, you’ve got Praça Luís de Camões, Bertrand Chiado, the National Theatre of São Carlos and Igreja de São Roque nearby.

Chiado is also a good starting point for simply wandering. Some of the most enjoyable walks through central Lisbon are the streets connecting Chiado with Carmo, Bairro Alto, Príncipe Real and Baixa. I’ve included several more ideas in my guide to unique things to do in Lisbon.

Where to stay in Chiado

• Bairro Alto Hotel – despite the name, its position on Praça Luís de Camões puts you right on the Chiado/Bairro Alto boundary. The location is excellent and they have a stunning rooftop bar!
• Le Consulat – another excellent location directly on Praça Luís de Camões.
• Lisboa Carmo Hotel – a particularly good choice if you like the quieter Carmo side of Chiado.

→ Compare places to stay in Chiado

3. Baixa – Best for Central Sightseeing and Easier Walking

Directly downhill from Chiado is Baixa, Lisbon’s grand downtown district.

Baixa was devastated by the earthquake, fires and tsunami of 1755 and subsequently rebuilt in the ordered grid pattern that still defines the neighbourhood today.

For visitors, the big advantage is convenience. Praça do Comércio and the riverfront sit at one end, Rossio at the other, with Rua Augusta running through the centre. Chiado, Alfama and the castle area are all nearby.

Baixa itself is also relatively flat by Lisbon standards.

Personally, I find parts of Baixa more overtly touristy than Avenida da Liberdade or even parts of Chiado. Rua Augusta can get extremely busy, and I wouldn’t necessarily choose the restaurants along the main tourist routes. Steer well clear of any restaurant advertising paella and claiming to be authentic Portuguese!

But as a base, it’s extremely practical.

Best for: first-time visitors, short trips, sightseeing, easy transport connections and travellers who would prefer to minimise hills around their hotel.

Things to see around Baixa

Praça do Comércio, Rua Augusta and its triumphal arch, Rossio Square, Igreja de São Domingos, MUDE and the Lisbon Story Centre are all close by.

You’ll also see the Santa Justa Lift rising above the neighbourhood. Its operating status has changed during recent works, so check before planning your day around using it.

Baixa is also a natural starting point for many of the routes in my 3-day Lisbon itinerary, particularly if this is your first visit.

Where to stay in Baixa

• Pousada de Lisboa – an upscale option directly on Praça do Comércio.
• My Story Hotel Ouro – very centrally located within the Baixa grid.
• My Story Hotel Augusta – another central option close to Rua Augusta.

→ Compare places to stay in Baixa

4. Príncipe Real – One of My Favourite Lisbon Neighbourhoods

Príncipe Real has long been one of my favourite areas of Lisbon.

It’s stylish without feeling like a purpose-built tourist district, with beautiful architecture, independent shops, restaurants, bars and the lovely Jardim do Príncipe Real at its centre.

It’s also close enough to Chiado and Bairro Alto that you can walk into the historic centre easily, although some of those routes are steep with extremely narrow streets.

One of the things I like most about Príncipe Real is that there are plenty of places where you can spend an afternoon or evening without feeling as though you’re ticking off tourist attractions.

Miradouro de São Pedro de Alcântara is one of my favourite viewpoints in Lisbon, looking across the city towards Castelo de São Jorge.

Then there’s Lost In, slightly hidden away off Rua Dom Pedro V. It’s a restaurant and bar with a garden and panoramic terrace, and the views across Lisbon are fantastic. It’s one of those places that’s easy to miss if you don’t know it’s there.

A little farther along Rua Dom Pedro V is Pavilhão Chinês, one of Lisbon’s most distinctive old bars, with room after room filled with an almost unbelievable collection of objects and memorabilia.

And directly on Praça do Príncipe Real you’ll find Embaixada, inside the beautiful 19th-century Ribeiro da Cunha Palace. It’s home to Portuguese design and fashion stores as well as Gin Lovers, which still operates its bar and restaurant here.

This concentration of places to eat, drink and wander is one of the reasons I like staying around Príncipe Real. If food is going to be a big part of your trip, you may also want to read my guide to what to eat in Lisbon.

Best for: couples, restaurants and bars, boutique shopping, return visitors and travellers who want a central neighbourhood that feels a little removed from the busiest sightseeing streets.

The drawback: some of the side streets are seriously steep. Check the exact location of your hotel if this matters to you.

Where to stay in Príncipe Real

• Memmo Príncipe Real – tucked away above the city with beautiful views.
• 1869 Príncipe Real
• Casa do Príncipe

→ Compare places to stay in Príncipe Real

If viewpoints are high on your Lisbon list, I’ve also put together a guide to some of my favourite views and viewpoints in Lisbon.

5. Avenidas Novas, Saldanha & Picoas – A Great More Local Alternative

This one is a little more personal because I actually lived in this part of Lisbon before moving closer to Estoril.

And I still think it’s a great place to stay.

Avenidas Novas, Saldanha and Picoas don’t always give you the postcard version of Lisbon the moment you walk out the door. Instead, you get broad avenues, beautiful architecture, cafés, restaurants, shops, offices and residential streets where everyday Lisbon life is much more visible.

There are far fewer tourists than you’ll encounter in Chiado or Baixa.

Transport is excellent too. Saldanha has particularly useful metro connections, so getting into the centre of downtown Lisbon is easy without needing to stay in the middle of it.

Much of this area is also relatively flat compared with Lisbon’s older neighbourhoods.

For somebody staying a little longer, visiting Lisbon for a second time or simply wanting to feel less surrounded by tourism, I think it’s a very good option.

Best for: longer stays, repeat visitors, business trips, excellent metro connections and travellers looking for a more local side of Lisbon.

Things to do around Avenidas Novas

The Calouste Gulbenkian Foundation and its gardens are one of the major cultural attractions in this part of Lisbon.

There’s also the beautiful historic Pastelaria Versailles on Avenida da República, while El Corte Inglés shopping center is farther across towards São Sebastião.

And because you’re so well connected by metro, staying here doesn’t stop you exploring central Lisbon at all.

Where to stay around Saldanha

• Hotel White Lisboa – directly opposite Saldanha metro station.
• EVOLUTION Lisboa – another extremely convenient Saldanha option.
• Olissippo Saldanha

→ Compare places to stay around Saldanha

Areas I Would Visit Rather Than Choose as My Lisbon Base

There are some Lisbon neighbourhoods that I absolutely think you should explore — I just wouldn’t personally recommend booking your accommodation there.

That distinction matters, because some of the most atmospheric parts of Lisbon aren’t necessarily the most practical places to stay.

Alfama, Castelo & Sé

Alfama is beautiful.

It’s one of the oldest and most atmospheric parts of Lisbon, with narrow cobbled lanes, tiled façades, tiny staircases, viewpoints, fado restaurants and streets that twist their way up towards Castelo de São Jorge.

You should absolutely explore it. I just wouldn’t personally choose to stay here. I made that mistake when I moved to Lisbon in 2017 and decided to book an apartment in Alfama for a few weeks and had to haul several pieces of luggage up numerous narrow and windy streets – never again!

The narrow streets and steep hills look incredibly romantic in photographs, but they become less romantic when you’re dragging luggage over cobbles or climbing back to your accommodation after an entire day walking around Lisbon.

Some streets also can’t be reached directly by car, so the final part of your journey to the hotel may need to be on foot.

I’d much rather stay somewhere like Avenida da Liberdade, Chiado or Baixa and come to Alfama when I want to explore it. That way you still get the old-Lisbon atmosphere without making those steep streets part of every journey back to your hotel.

Castelo de São Jorge, Lisbon Cathedral, the Fado Museum, the National Pantheon and Miradouro das Portas do Sol are all worth seeing while you’re here.

Bairro Alto

Bairro Alto is another area I enjoy visiting but would be very hesitant to recommend as somewhere to stay.

During the day, some of the streets can feel almost strangely quiet. At night, it’s completely different.

Bairro Alto is one of Lisbon’s main nightlife areas, with small bars packed into narrow streets and crowds spilling outside.

If you’re coming to Lisbon specifically to party, want bars literally outside your door, and genuinely don’t mind noise and streets that can feel a little grimy after a busy night, then perhaps staying here could work for you.

But even then, I’d probably choose somewhere nearby instead.

Chiado, Príncipe Real, Santos, Baixa, and even Avenida Liberdade are all within walking distance, so you can go out in Bairro Alto and still return somewhere that feels considerably calmer. For most visitors, that’s the option I’d recommend.

Santos

Santos is an area I like, particularly for restaurants, cafés and bars.

It feels much less like a sightseeing district than Chiado or Baixa and has developed into a popular area for dining, design and nightlife while still retaining a residential side.

Transport currently includes buses, trams and nearby rail connections. A new Santos metro station is also being built as part of Lisbon’s Circular Line, with the Metro currently targeting the first quarter of 2027 for operation.

I wouldn’t necessarily put Santos ahead of Avenida, Chiado, Baixa or Príncipe Real for somebody’s first visit, but it’s worth considering if you’ve been to Lisbon before and want a different base.

Graça & Anjos

Graça and Anjos give you another side of Lisbon entirely.

Graça sits high above Alfama and has some fantastic viewpoints, including Miradouro da Graça and Miradouro da Senhora do Monte.

But once again, the hills matter here. If you’re staying in Graça, you’re going to need to think about whether you’re happy walking them regularly or whether you’ll be using taxis, Uber or public transport.

Anjos, around Avenida Almirante Reis, is easier to connect with the centre by metro and has a more residential, multicultural feel.

I enjoy both areas, but neither would be near the top of my list for a first-time visitor deciding where to stay.

Belém

Belém is somewhere virtually every first-time visitor to Lisbon should see.

You’ve got the Jerónimos Monastery, Padrão dos Descobrimentos, MAAT, the National Coach Museum, Belém Tower and, of course, Pastéis de Belém.

But again, I wouldn’t personally choose it as my base for exploring Lisbon.

It’s west of the historic centre, which means you’ll be relying on trains, trams, buses, taxis or Uber whenever you want to head into Baixa, Chiado or the other central neighbourhoods.

I’d rather stay centrally and spend part of a day exploring Belém.

It’s also easy to combine Belém with plans farther west. If you’re heading out towards Cascais, for example, you could explore Belém before continuing along the coast rather than moving your accommodation out here.

I’ve covered the journey in more detail in my guide to travelling from Lisbon to Cascais. Cascais is also one of several easy options to consider if you’re planning some day trips from Lisbon during a longer stay.

So Where Would I Actually Book?

For most people visiting Lisbon for the first time, I’d start with Avenida da Liberdade.

It’s the balance I like most: beautiful surroundings, excellent hotels, good transport, plenty within walking distance and a calmer atmosphere than the busiest streets of the historic centre.

If you want to be more immersed in historic Lisbon, Chiado would be my next choice, followed by Baixa.

For restaurants, bars and a neighbourhood I personally love spending time in, Príncipe Real is another excellent option.

And if you’re staying longer or don’t mind being a short metro ride from the historic centre, don’t overlook Saldanha and Avenidas Novas.

I wouldn’t choose Alfama simply because it’s atmospheric, and I definitely wouldn’t book Bairro Alto without understanding exactly what staying in Lisbon’s main nightlife district entails.

The best location isn’t necessarily the one closest to the most attractions. It’s the one that makes sense for how you actually plan to experience Lisbon. Once you’ve decided which area suits you, you can compare accommodation across Lisbon here.