Last updated on January 03rd, 2023
Portugal’s capital city, Lisbon, enjoys a wonderfully sunny climate, a great seaside location, and some stunning culture, food, and architecture. A holiday to Lisbon is definitely highly recommended, and you can enjoy this city to the full even if you are on a very strict budget as there are lots of fantastically cheap accommodation options here. You can find budget hotels or self catering apartments in Lisbon with ease! Wondering where best to stay when you visit this beautiful region of the Iberian Peninsula?
Lisbon is a lively city lit with fun and stands out among many capitals in Europe. Whatever thrilling experience you need, Lisbon will provide to your satisfaction. Lisbon offers nightlife, romantic adventure and budget friendly places with a great encounter with Portugal’s culture. If you wish to learn about the Lisbon culture, taking a food tour is highly recommended. From the food tour; you will learn how to make the best local dishes, enjoy the view Tagus River and have amazing sight-seeing experience. Alfama district offers the best local knowledge. Baixa is an old neighbourhood in the capital of Portugal. Some of the unique places in Baixa include the Rossio square which dates back to the thirteenth century.
Today, the square is the center for most leisure activities for both locals and visitors. With a little help, you will realize that all your needs when paying a quick visit to Lisbon are taken care of by the city. It doesn’t matter if you are on a budget, there are regions which have consistency in lower budgets. In Rossio, hotels will cost you as little as 50 euro’s per night. This, however, should not be interpreted as the life in other neighbourhoods is expensive. In every locality, there are hotels you can stay even when you are on a tight budget.
When the night comes, the busy corporate world is replaced by mind-blowing night experience. The Cais Do Sodre district stands out for its endless options for fun. By night, this locality will blow your mind by the everlasting options of a good time. Below, the different neighbourhoods of Lisbon are broken down with their specialization.
Quick Overview – Contents
- What is the Best Area to Stay in Lisbon
- Best Area for First Time Visit
- Where to Stay for Best Views
- Best Neighbourhood for Local Experience
- Best Area for Romantic Stay
- Best Area to Stay for Nightlife
- Best Neighbourhood for Museums & History
- Where to Stay in Lisbon on a Budget
- 5 Best Neighourhoods to Stay for Tourists
Where is the Best Place to Stay in Lisbon Portugal?
Best for First Time (Sightseeing): Old Town (Baixa / Chiado) – Avenida da Liberdade area
The old town area, which includes Baixa and Chiado, and the Avenida de Liberdade area are two of the best places to stay in Lisbon for first time visitors. The old town of Baixa is endowed with history. The city is filled with nineteenth-century buildings which best explain the history of Lisbon. There are plenty of tourist attractions like Torreiro Do Paco square and Lisbon Story Centre, a modern-day museum which tells the city’s history. The Santa Justa public lift is a significant tourist attraction aged slightly over one hundred years. At the very top of the elevator is a café, from this café, the view of Lisbon is clear.
Where to Stay in Lisbon City Centre
- Best Luxury Hotels in Lisbon
Corpo Santo Lisbon Historical Hotel • EPIC SANA Lisboa Hotel
- Best Great Value – Top Rated Hotels
Hotel Convento do Salvador • My Story Hotel Rossio
- Best Cheap Hotels in Lisbon
Sete Colinas • Hotel Portuense
- Best Bed & Breakfast in Lisbon
Casa do Barao • Feels Like Home Chiado Prime Suites
- Best Budget Hostels in Lisbon
Goodmorning Hostel • Home Lisbon Hostel
What is the Best Area in Lisbon to Stay?
Alfama is crowded with traditional Portuguese culture of food. Most dishes made in this locality are local making you feel like you are in another home. During the day tourists get to walk by Tagus River, the river provides a peaceful touch to this locality. You can visit famous religious centers like the Se Cathedral and Saint Antony’s church. To understand Alfama more appealingly might require you to ride the number 28 tram or the flexible tuk-tuks.
Where to stay in Lisbon for best views of the city? Graça (São Vicente)
Graça is among the oldest districts of Lisbon. This area is located on top of a hill giving a complete look of Lisbon city from selected locations. Graça is the only locality of Lisbon from which one can see the whole town while sipping beer seated at a rooftop bar. Graça district is host to antique buildings of the eighteen century. The best view of Lisbon from Graça is during the night when the lighting of the city gives it a spectacular panorama.
What’s the best neighborhood in Lisbon for romantic holiday? Alfama
If you want to add a small romantic touch to your visit to Lisbon make sure you visit Alfama district. When you stay here, you can take a culinary tour with your fiancee learning all about the Lisbon culture. Visit the national Pantheon and climb to the top to witness the incredible view of Lisbon. If you are single, get yourself a boyfriend or girlfriend by landing a coin on the book of Saint Antony’s statue.
What’s the best area in Lisbon for nightlife? Cais do Sodré – Bairro Alto
The Bairro Alto district has a distinct fashionable taste by the day, and by night the lifestyle becomes more collected. In this district, parties commence as soon as the sun goes down when the small bars begin to open. As long as you are having fun, nobody cares whether you are a local or a foreigner. The town appreciates and celebrates the diversity of all people who stay here. During the summer, Bairro Alto district hosts very many tourists who visit to have a good time.
Best area for museum lovers and interested in history? Belem
Characterised by beautiful river and estuary views, Belem is another great part of Lisbon for those who love a combination of stunning history and natural beauty. Its Belem Tower is one of the main landmarks, as the Jerónimos Monastery – both of these sights are set dramatically on the waterfront.
Where to stay in Lisbon on a budget (neighbourhood)? Rossio
Rossio is the central neighbourhood of Lisbon. The architectural design of the well-lit buildings is amazing with exquisite pathways which ease the navigation of the town. In this locality, there are numerous accommodation houses which offer affordable packages to the guests. This area is full of many hotels you can stay at an affordable price. Do not be confused by the cost of living in this area by thinking the quality of services is diluted. Rossio is a quality locality, and many tourists prefer getting accommodation here.
The 5 Best Neighbourhoods in Lisbon (Lisboa) for Tourists
Of course, every part of Lisbon has its charm, and we definitely recommend branching out beyond the spot where you are staying and exploring other areas of the city. Nevertheless, it is highly recommended that you think about booking your budget accommodation in one of these top areas.
1. The Old City Centre (Baixa / Chiado) – Where to Stay in Lisbon for First-timers
This is the city’s main shopping area, and it is right in the very centre of Lisbon!
This is no ordinary shopping experience, though, as this buzzing neighbourhood is situated right on the riverfront.
This is Lisbon’s oldest neighbourhood. It is home to sights such as the iconic São Jorge Castle, and is characterised by its quaint and poetic medieval alleyways.
Staying into one of the budget hotels in this part of the city will result in a holiday that will not be forgotten in a hurry.
- Best Accommodation: Alfama Apartment with Balcony
- Best Cheap Hotels: Hotel Convento do Salvador • Alfama – Lisbon Lounge Suites (Aparthotel)
3. Bairro Alto
Often referred to as the most bohemian part of the city, Bairro Alto is also said to really come alive in the night time. If you are looking for a party, seeking accommodation in this neighbourhood in Portugal is a fantastic idea.
There is plenty to see and do here during the day time as well, though, never fear!
- Best Accommodation: Martinhal Lisbon Chiado Family Suites
- Best Cheap/Mid-Range Hotels: Grapes & Bites – Hostel and Wines (Hostel) • Inn Bairro Alto B&B / B.A Sweet (Bed and Breakfast)
A lovely leafy and quiet neighbourhood that is nevertheless very well connected for those times when you want to see all of the main sights of Lisbon. A great option for a peaceful stay.
- Best Hotel: Memmo Príncipe Real – Design Hotels
- Best Cheap Hotels / Great Value: 1869 Principe Real (Bed and Breakfast) • Safira (Guest House)
One of the more modern neighbourhoods of the city, Campo de Ourique is a largely residential area. Thus, it is very peaceful and great for anyone who wants some down time in their accommodation before heading out to sight see or to party.
Even better, Campo de Ourique is very centrally located so as soon as you step out of the door of your budget hotel in this neighbourhood, you will be just a stone’s throw away from some of the most famous monuments, galleries, and other central landmarks.
- Best Hotel: Hotel da Estrela – Small Luxury Hotels of the World
- Best Cheap/Mid-Range Hotels: The Postcard Lisbon (Bed and Breakfast) • O Bigode Do Rato (Guest House)