Last affordable areas to buy in Lisbon

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What are the average prices per square meter in Lisbon's most affordable districts right now?

The cheapest districts within Lisbon proper are Marvila at €3,701 per square meter and Olivais at €3,942 per square meter as of September 2025.

In the wider Lisbon metropolitan area, Amadora and Loures offer properties in the €3,000 to €3,500 per square meter range. Sacavém, a parish within Loures, has pockets where prices approach €3,000 per square meter, making it one of the most accessible options.

Santo António dos Cavaleiros in Loures also maintains prices closer to the €3,000 mark, particularly for older apartment blocks built in the 1970s and 1980s. These suburban areas have become increasingly popular as buyers are priced out of central Lisbon neighborhoods.

Almada, accessible via ferry and train connections, averages around €3,300 per square meter and offers good value for buyers willing to commute across the Tagus River.

It's something we develop in our Portugal property pack.

Which neighborhoods still offer properties under €3,500 per square meter for first-time buyers?

First-time buyers should focus on Marvila, select areas of Olivais, and suburban municipalities like Amadora, Loures, and Odivelas for properties under €3,500 per square meter.

Marvila, despite recent price increases, still offers units below the €3,500 threshold, particularly in older residential complexes that may require renovation. The neighborhood benefits from ongoing urban regeneration projects and improved metro connectivity.

Parts of Olivais, especially areas farther from the metro stations, maintain prices around €3,400 per square meter. These locations often feature larger apartments from the 1960s and 1970s with good potential for modernization.

Amadora consistently provides options under €3,500 per square meter, with many properties in the €3,200 range. The municipality offers good transport links via the Blue metro line and has seen significant infrastructure improvements.

Sacavém and other parts of Loures remain accessible to first-time buyers, with some properties available at €3,000 per square meter, though these typically require renovation work.

How much have prices increased in these areas over the last 3 years and what's the projected trend?

Property prices in affordable Lisbon districts have experienced significant growth over the past three years, with increases of 40% to 55% in eastern and northern parishes.

Marvila saw one of the steepest price increases in 2024-25, with a 23% annual rise as buyers discovered this previously overlooked neighborhood. Lumiar experienced nearly 16% growth in the same period, driven by its metro connectivity and family-friendly amenities.

The overall trend across affordable districts shows annual appreciation rates that have outpaced central Lisbon as value-seeking buyers migrate to these areas. This rapid growth reflects the spillover effect from the premium neighborhoods where prices have become prohibitive for many buyers.

For the next two years, forecasts suggest continued but moderated growth of 4% to 7% annually. This slower pace reflects market maturation and the anticipated increase in new housing supply in these districts.

The stabilization trend is expected as these formerly affordable areas reach price levels where further dramatic increases become unsustainable for the target demographic of first-time buyers and young professionals.

Which parishes still offer bank financing options under €250,000 for two-bedroom apartments?

Finding two-bedroom apartments under €250,000 that qualify for standard bank financing has become extremely challenging within Lisbon proper as of September 2025.

In Marvila and Olivais, small T2 apartments in older buildings may occasionally be available near the €250,000 threshold, particularly units requiring significant renovation work. These properties typically date from the 1960s-1980s and may lack modern amenities.

The vast majority of properties at this price point are located in peripheral municipalities like Amadora, Odivelas, or outer areas of Loures. These locations offer better chances of securing financing for two-bedroom units within the €250,000 budget.

Properties requiring substantial renovation work may be available in this price range, but buyers must factor in additional costs of €30,000 to €50,000 for complete modernization. Banks typically consider both the purchase price and renovation costs when evaluating loan applications.

Buyers should expect to compromise on either location, condition, or size when seeking bank financing under €250,000 for two-bedroom apartments in the Lisbon area.

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What rental yields can I expect in cheaper areas compared to central Lisbon?

Rental yields in Lisbon's affordable districts typically range from 4.5% to 6%, significantly higher than the sub-3.5% yields found in prime central neighborhoods.

A renovated property in Marvila or Amadora can achieve gross rental yields around 5.5% with long-term leasing arrangements. This compares favorably to restored apartments in premium areas like Bairro Alto or Chiado, which typically yield around 3% due to their high purchase prices.

Sacavém and outer areas of Loures can deliver yields approaching 6%, particularly for properties purchased at the lower end of the price spectrum and well-maintained. These higher yields reflect both lower acquisition costs and steady rental demand from commuters.

The strong rental demand in these areas comes from young professionals and families who work in central Lisbon but cannot afford to buy or rent in premium neighborhoods. This demographic provides a stable tenant base for investment properties.

It's something we develop in our Portugal property pack.

Which metro or train-connected areas allow commutes under 30 minutes while remaining affordable?

What property types are most common in these affordable neighborhoods?

The majority of affordable housing stock consists of older apartment buildings constructed between the 1960s and 1980s, particularly in Olivais, Marvila, and Amadora.

These older apartments typically feature solid concrete construction but require modernization of kitchens, bathrooms, electrical systems, and windows. Many retain original features like terrazzo floors and high ceilings that can be attractive after renovation.

New builds are rare in these affordable areas, though some mega-redevelopment projects are emerging in Marvila as part of urban regeneration initiatives. These new developments command premium prices within their respective neighborhoods.

Some individual terraced houses can be found in Encarnação (part of Olivais) and throughout Loures, offering buyers the opportunity for single-family living at affordable prices. These properties often include small gardens or courtyards.

In peripheral locations like Oeiras or outer Sintra, new-build opportunities are more common, though prices tend to be higher than the core affordable districts discussed here.

How much renovation budget should I plan for older properties in these areas?

For complete renovation of an older apartment in Lisbon's affordable districts, budget between €30,000 and €50,000 to modernize kitchen, bathrooms, windows, and electrical systems.

Basic renovation typically includes new kitchen units (€8,000-€12,000), bathroom modernization (€6,000-€10,000), replacement windows (€4,000-€8,000), and electrical updates (€3,000-€5,000). Flooring replacement adds another €3,000-€6,000 depending on materials chosen.

High-end finishes or luxury renovations can push costs above €65,000, particularly if structural changes are required or premium materials are selected. Properties requiring significant plumbing or structural work may exceed these estimates.

Many affordable units in these neighborhoods require at least basic modernization to achieve market rental rates or prepare for resale. Buyers should factor renovation costs into their total investment calculation when evaluating properties.

Professional surveys are essential before purchase to identify potential structural issues, plumbing problems, or electrical hazards that could significantly increase renovation costs beyond standard modernization work.

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 Golden Visa investment opportunities still available under €280,000 in Lisbon?

Golden Visa opportunities within Lisbon city for investments under €280,000 are essentially non-existent as of September 2025.

The few remaining Golden Visa programs at this price level focus on peripheral rural areas outside Lisbon or specialized urban regeneration projects that rarely qualify properties in the affordable districts discussed here.

Most Golden Visa-eligible properties in Lisbon now require investments well above €500,000, particularly after recent program changes that have tightened requirements and focused on higher-value investments.

Investors seeking Golden Visa eligibility should look at commercial properties, tourism developments, or rural regeneration projects rather than residential properties in Lisbon's affordable neighborhoods.

Alternative investment visa programs may offer different requirements, but the traditional Golden Visa pathway through affordable residential real estate in Lisbon is no longer viable for most buyers.

Which neighborhoods attract young professionals and families priced out of central Lisbon?

Marvila has become a hotspot for young professionals attracted by its proximity to central Lisbon, ongoing urban regeneration, and relatively affordable prices compared to traditional neighborhoods.

Olivais and parts of Lumiar attract families seeking larger apartments, better schools, and green spaces while maintaining metro connectivity to employment centers. These areas offer a suburban feel within the city limits.

Odivelas and Amadora see significant influx of young families who prioritize space, affordability, and good transport links over central location. These municipalities offer better value for money for buyers seeking two or three-bedroom apartments.

The demographic shift reflects the broader trend of Lisbon residents being pushed outward by rising central property prices. These areas benefit from new schools, retail developments, and improved infrastructure as municipalities adapt to growing populations.

It's something we develop in our Portugal property pack.

How do transaction costs in Lisbon compare to the Portuguese national average?

Transaction costs in Lisbon are among Portugal's highest, typically reaching 7% to 8% of the purchase price compared to 6% to 7% nationally.

The higher costs result from Lisbon's elevated property values triggering higher IMT (transfer tax) rates, increased stamp duty calculations, and higher base fees for notary and registration services that scale with property values.

IMT rates escalate more quickly in Lisbon due to the higher property value tiers, and the city's high land values increase the base calculation for notary and registration fees by approximately 1% to 1.5% above the national average.

Buyers should budget for IMT rates ranging from 2% to 6% depending on property value, plus 0.8% stamp duty, notary fees of €500-€800, and registration costs of €200-€400. Legal fees typically add another 1% to 1.5% of the purchase price.

These higher transaction costs must be factored into investment calculations, particularly for properties at the affordable end of the market where margins may be tighter.

What are the projected resale values for properties bought now in affordable areas?

Properties purchased in Lisbon's affordable districts in September 2025 could see resale values increase by 22% to 32% over the next five years, based on projected annual appreciation of 4% to 6%.

This projection assumes continued buyer interest in these areas, ongoing infrastructure improvements, and macroeconomic stability. The growth rate represents a moderation from the dramatic increases of 2022-2024.

Areas like Marvila and Olivais may see stronger appreciation due to planned urban development projects and improved connectivity, potentially reaching the higher end of the projection range.

Suburban areas like Amadora and Loures may experience more modest but steady growth as they mature as residential destinations and benefit from transport infrastructure investments.

The projected gains reflect continued price convergence with central districts, though the rate of appreciation is expected to slow as these areas become less affordable relative to buyer incomes and new supply comes online.

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.

Sources

1. Portugal Residency Advisors - Cheapest Places to Buy in Lisbon 2024
2. Bleisured - Buying Property in Lisbon 2025 Guide
3. InvestRopa - Lisbon Area Analysis
4. InvestRopa - Lisbon Price Forecasts
5. Idealista - Cheapest Rental Markets Portugal 2025
6. Tagus Property - Lisbon Real Estate Market
7. Mono Estate - 2025 Lisbon Property Market Guide
8. Global Property Guide - Portugal Price History