Authored by the expert who managed and guided the team behind the Portugal Property Pack
Yes, the analysis of Lisbon's property market is included in our pack
As of September 2025, Lisbon's apartment market shows stark pricing differences between central and suburban areas.
Prime neighborhoods like Baixa and Chiado command €7,000-€8,500 per square meter, while more affordable districts like Benfica offer properties around €3,500-€4,000 per square meter. Rental costs for one-bedroom apartments range from €1,000-€1,800 monthly in popular central areas, with utilities adding approximately €100-€140 per month.
If you want to go deeper, you can check our pack of documents related to the real estate market in Portugal, based on reliable facts and data, not opinions or rumors.
Lisbon's apartment market in 2025 shows significant price variations, with central districts costing nearly double suburban areas.
Property prices continue rising with an 8.6% annual increase, making purchasing decisions increasingly time-sensitive for investors and residents.
| Cost Category | Central Lisbon | Suburban Areas |
|---|---|---|
| Price per m² (purchase) | €7,000-€8,500 | €3,500-€4,000 |
| 1-bedroom rent | €1,000-€1,800 | €650-€900 |
| 2-bedroom purchase | €600,000-€950,000+ | €250,000-€450,000 |
| Monthly utilities | €100-€140 | €100-€140 |
| Rental deposit | 1-2 months rent | 1-2 months rent |
| Monthly IMI tax | €25-€80 | €25-€80 |
What's the average cost per square meter for an apartment in Lisbon right now?
The average price per square meter for apartments in Lisbon varies dramatically by location, ranging from €3,500 to €8,500 as of September 2025.
Prime central districts like Baixa, Chiado, and Príncipe Real command the highest prices at €7,000-€8,500 per square meter. These areas attract premium pricing due to their historic significance, tourist appeal, and proximity to major business centers.
Mid-tier neighborhoods such as Alfama and Bairro Alto typically cost €6,500-€8,000 per square meter, while more affordable districts like Benfica and Olivais offer properties around €3,500-€4,000 per square meter. The price difference between central and suburban areas represents nearly a 100% markup for prime locations.
Recent market data shows Lisbon apartment prices continue rising, with an 8.6% annual increase recorded in the most recent quarterly reports. This upward trend reflects strong demand from both domestic buyers and international investors.
What's the price difference between renting and buying an apartment in Lisbon?
Renting costs significantly less upfront but buying may offer better long-term value depending on your timeline and market conditions.
For a one-bedroom apartment in central areas like Baixa or Alfama, monthly rent ranges from €1,000-€1,800, while purchasing the same property would typically cost €400,000-€650,000. This means you'd need roughly 20-30 years of rent payments to equal the purchase price, not accounting for price appreciation.
In more affordable districts, one-bedroom rentals cost €650-€900 monthly, while purchasing would require €200,000-€350,000 upfront. The rent-to-price ratio varies considerably by neighborhood, with suburban areas often offering better rental yields for investors.
It's something we develop in our Portugal property pack.
Current market trends show property values appreciating faster than rental increases, making purchasing potentially more attractive for long-term residents planning to stay 5+ years.
How much does it cost to rent a one-bedroom apartment in popular neighborhoods like Baixa, Alfama, or Bairro Alto?
| Neighborhood | Monthly Rent Range | Typical Features |
|---|---|---|
| Baixa | €1,400-€1,800 | Historic buildings, tourist area, central location |
| Alfama | €1,200-€1,600 | Traditional architecture, narrow streets, cultural significance |
| Bairro Alto | €1,100-€1,450 | Nightlife district, younger demographic, vibrant atmosphere |
| Avenidas Novas | €1,600-€2,100 | Modern buildings, business district, excellent transport |
| Benfica/Olivais | €650-€900 | Suburban feel, larger spaces, family-friendly |
How much do utilities cost for a standard apartment in Lisbon?
Monthly utilities for a standard apartment in Lisbon typically cost €100-€140, with internet adding another €30-€40.
Electricity represents the largest utility expense, averaging €50-€70 monthly depending on apartment size and usage patterns. Water and garbage collection combined cost approximately €30-€50 per month. These costs remain relatively consistent across different neighborhoods, unlike rent and purchase prices.
Internet services range from €30-€40 monthly for standard broadband connections suitable for remote work and streaming. Many buildings include basic cable TV in condominium fees, but premium services cost extra.
Heating costs vary seasonally, with winter months potentially adding €20-€40 to electricity bills in apartments without central heating systems. Most modern Lisbon apartments rely on electric heating and air conditioning units.
Are there any hidden costs when renting an apartment in Lisbon?
Yes, several additional costs beyond monthly rent can surprise new tenants in Lisbon's rental market.
Agency fees represent the most significant hidden cost, typically requiring one month's rent paid upfront to the real estate agency. Some agencies split this fee between tenant and landlord, but tenants often bear the full cost in competitive markets.
Condominium or building maintenance fees range from €20-€50 monthly for apartments in buildings with shared amenities like elevators, gardens, or security systems. These fees are usually separate from rent and cover common area maintenance.
Rental deposits require 1-2 months' rent upfront, held as security against damages or unpaid rent. Some landlords also require proof of income documentation or guarantor arrangements, which may involve additional administrative fees.
Minor repair responsibilities sometimes fall to tenants, though major maintenance remains the landlord's obligation under Portuguese rental law.
Don't lose money on your property in Lisbon
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What's the typical deposit amount required to rent an apartment in Lisbon?
Rental deposits in Lisbon typically require 1-2 months' rent paid upfront, with two months becoming increasingly common in competitive neighborhoods.
For apartments in popular areas like Baixa or Alfama, landlords usually demand two months' rent as deposit, meaning €2,000-€3,600 upfront for a one-bedroom unit. This higher deposit reflects strong rental demand and landlord preference for financial security.
In more affordable suburban areas, one month's deposit (€650-€900) is often sufficient, though this varies by individual landlord policies and property condition. Some landlords may accept lower deposits from tenants with strong financial credentials or long-term lease commitments.
Portuguese law requires deposits to be returned within 30 days of lease termination, minus any legitimate deductions for damages or unpaid utilities. Keep detailed move-in documentation to ensure full deposit recovery.
How much do monthly property taxes cost for homeowners in Lisbon?
Monthly IMI (property tax) costs for Lisbon homeowners typically range from €25-€80, depending on property value and exact location.
The annual IMI rate for Lisbon ranges from 0.3%-0.45% of the property's official tax valuation, which is often lower than market value. For a €500,000 apartment, annual IMI would cost approximately €1,500-€2,250, or €125-€188 monthly.
Tax valuations vary by neighborhood and property age, with newer properties often having higher official valuations. Central districts may have different municipal rates compared to suburban areas within greater Lisbon.
Additional property-related costs include annual building insurance (€200-€500 annually) and condominium fees for shared building maintenance, which are separate from IMI taxes.
How much does it cost to buy a two-bedroom apartment in central Lisbon versus the outskirts?
Two-bedroom apartments in central Lisbon cost €600,000-€950,000+, while similar properties in suburban areas range from €250,000-€450,000.
Prime central locations like Chiado, Baixa, or Avenidas Novas command premium prices due to proximity to business districts, cultural attractions, and transport hubs. A 70-square-meter two-bedroom in these areas typically costs €600,000-€700,000, with luxury units exceeding €950,000.
Suburban districts like Benfica, Olivais, or Marvila offer significantly better value, with two-bedroom apartments ranging from €250,000-€450,000. These areas provide larger living spaces and family-friendly environments while maintaining good transport connections to central Lisbon.
It's something we develop in our Portugal property pack.
The price differential reflects not just location premium but also property age, building quality, and local amenities. Central properties often require renovation, while suburban developments frequently offer modern finishes and parking.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Are there significant differences in apartment prices between Lisbon's central districts and suburban areas?
Yes, central districts cost nearly double suburban areas, with price differences reaching 100% or more between prime and affordable neighborhoods.
Central districts like Baixa and Chiado average €7,000-€8,500 per square meter, while suburban areas like Benfica and Olivais cost €3,500-€4,000 per square meter. This represents a €3,500-€4,500 per square meter premium for central locations.
The price gap extends beyond raw square meter costs to include different property types and conditions. Central areas predominantly offer older buildings requiring renovation, while suburbs feature more modern constructions with parking and better layouts.
Transportation costs partially offset suburban savings, but monthly transport passes (€40) are minimal compared to the hundreds of thousands in purchase price differences. Suburban buyers get significantly more space and modern amenities for their investment.
What is the average price for an apartment in Lisbon's most sought-after neighborhoods?
Lisbon's most prestigious neighborhoods command €7,000-€8,500+ per square meter, with some luxury properties exceeding €10,000 per square meter.
- Chiado and Baixa: €7,500-€8,500 per square meter - Historic center with luxury shopping and cultural attractions
- Príncipe Real: €8,000-€9,000 per square meter - Upscale residential area with designer boutiques and gardens
- Avenidas Novas: €8,300+ per square meter - Modern business district with excellent transport connections
- Estrela: €7,000-€8,000 per square meter - Elegant residential area near parliament and embassies
- Campo de Ourique: €6,500-€7,500 per square meter - Family-friendly area with local charm and markets
How much should I expect to pay for an unfurnished versus furnished apartment in Lisbon?
Furnished apartments typically cost 10%-20% more in monthly rent compared to unfurnished options, with the premium varying by neighborhood and furnishing quality.
In central areas, unfurnished one-bedroom apartments rent for €1,000-€1,500 monthly, while furnished equivalents cost €1,200-€1,800. The furnishing premium reflects appliances, furniture, and kitchen equipment included in the rental.
Suburban areas show similar percentage increases, with unfurnished apartments renting for €650-€800 and furnished options costing €750-€950. Higher-end furnished apartments include premium appliances and designer furniture, commanding larger premiums.
Unfurnished rentals provide more flexibility for long-term residents to customize their living space, while furnished options suit short-term stays or international relocations where shipping furniture isn't practical.
What are the long-term trends for property prices in Lisbon, and are they expected to rise or fall in the near future?
Lisbon property prices are expected to continue rising through 2026, though at a slower pace than the dramatic increases seen since 2020.
Property values have nearly doubled since 2020, driven by international demand, limited housing supply, and Portugal's Golden Visa program. The most recent data shows 8.6% annual price growth, indicating continued upward momentum despite economic uncertainties.
Market forecasts suggest continued but moderating growth of 3%-6% annually through 2026, as supply constraints persist while demand remains strong from both domestic buyers and international investors. New construction hasn't kept pace with population growth and tourism recovery.
It's something we develop in our Portugal property pack.
Factors supporting continued price growth include Lisbon's increasing international profile, remote work trends making Portuguese residency attractive, and ongoing infrastructure improvements. However, rising interest rates may moderate growth rates compared to recent years.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Lisbon's apartment market in 2025 presents significant opportunities for both investors and residents, though careful neighborhood selection is crucial for maximizing value.
Central districts offer prestige and rental potential but require substantial upfront investment, while suburban areas provide better value and space for families and long-term residents.
Sources
- InvestRopa - Average Apartment Price Lisbon
- MonoEstate - 2025 Lisbon Property Market Guide
- Nestpick - Lisbon Rental Market
- InvestRopa - Lisbon Average Apartment Prices
- Idealista - Baixa Rental Listings
- Spotahome - Alfama Apartments
- Global Citizen Solutions - Utilities in Portugal
- Wise - Cost of Living in Lisbon