What nobody tells you about buying in Lisbon

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

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Lisbon. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Portuguese real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Lisbon, Porto, and Cascais. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

How much does it really cost to buy a decent apartment in Lisbon right now per square meter?

A decent apartment in central Lisbon costs between €6,425 and €6,832 per square meter as of September 2025.

The price varies significantly depending on the specific area within Lisbon. Prime neighborhoods like Santo António, Príncipe Real, and areas around Avenida da Liberdade often exceed €8,000 per square meter, while traditional middle-tier areas like Campo de Ourique and Avenidas Novas range from €5,900 to €6,500 per square meter.

If you're looking for more affordable options, neighborhoods on the periphery offer much better value. Beato stands out as the most affordable at €3,197 per square meter, followed by Santa Clara at €3,267 per square meter, and Olivais at €3,500 to €3,942 per square meter. Marvila, which is rapidly developing, ranges from €3,701 to €5,687 per square meter depending on the exact location and property condition.

For a typical 70-square-meter apartment in central Lisbon, you're looking at €450,000 to €480,000, while the same size in affordable areas like Beato would cost around €224,000 to €275,000.

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

Which neighborhoods in Lisbon are still affordable, and which ones have already become overpriced?

The most affordable neighborhoods in Lisbon include Beato (€3,197/m²), Santa Clara (€3,267/m²), Olivais (€3,500-€3,942/m²), Carnide (€4,260/m²), and Benfica (€4,736/m²).

Marvila deserves special attention as it's still relatively affordable at €3,701 to €5,687 per square meter, but it's experiencing rapid price growth due to ongoing urban regeneration projects. Ajuda, at €5,479 per square meter, offers good value considering its proximity to universities and decent amenities.

The overpriced areas are concentrated in the historic center and premium districts. Santo António, Misericórdia, Príncipe Real, Chiado, and areas around Avenida da Liberdade consistently command prices above €6,000 per square meter, often reaching €8,000 to €10,000 per square meter for prime properties. These areas offer lower rental yields for investors, making them less attractive from a purely financial perspective.

Areas showing rapid price appreciation include Marvila, Lumiar, Ajuda, Benfica, and Alcântara, where annual increases are above the city average due to regeneration projects and increased investment interest.

Traditional middle-tier neighborhoods like Campo de Ourique, Estrela, and Avenidas Novas sit in the €5,900 to €6,500 range, offering a balance between location and price but with limited upside potential.

How competitive is the market—how many offers are usually made on a good property and how fast do you need to move?

The Lisbon property market is extremely competitive, especially for well-priced properties in desirable or affordable areas.

Good properties, particularly in neighborhoods like Marvila, Olivais, and Beato, can receive multiple offers within the first few days of listing. Buyers typically need to move within hours of viewing a property, not days or weeks. This is especially true for apartments priced competitively in the €3,000 to €5,000 per square meter range.

In the most sought-after affordable areas, it's common for properties to receive 3 to 8 offers, with some exceptional properties getting even more interest. Buyers who hesitate for more than 24-48 hours often lose out to more decisive competitors.

The speed requirement is less intense in the premium market (above €7,000 per square meter) where the buyer pool is smaller, but even there, well-located, move-in-ready apartments don't stay on the market long.

Cash buyers have a significant advantage in this competitive environment, as they can close faster and don't face financing contingencies that might delay or complicate the purchase process.

What hidden costs should I expect beyond the advertised price, like taxes, notary fees, and agent commissions?

Hidden costs typically add 8-10% to the advertised property price in Lisbon, sometimes more for expensive properties.

Cost Type	Percentage/Amount	Who Pays	Notes
IMT (Property Transfer Tax)	6-7.5%	Buyer	Higher for expensive properties
Stamp Duty	0.8%	Buyer	Of purchase price
Notary/Registry Fees	€1,000-€2,000	Buyer	Fixed amount range
Agent Commission	3-5%	Usually Seller	Sometimes split
Legal Fees	1-2%	Buyer	Recommended for foreigners
Property Survey	€300-€800	Buyer	Optional but recommended
Bank Valuation	€200-€500	Buyer	If getting mortgage

The IMT is the largest hidden cost and increases progressively with property value. For a €500,000 apartment, you're looking at around €30,000 to €37,500 in IMT alone. Legal fees are particularly important for foreign buyers to ensure proper due diligence and contract review.

Are there any specific rules for foreigners buying property in Lisbon, and how complicated is the paperwork?

Foreigners face no special restrictions when buying property in Lisbon, making it one of the most accessible European property markets.

You don't need Portuguese residency or citizenship to purchase property. EU citizens have the same rights as Portuguese nationals, while non-EU citizens also face no additional barriers or approval processes.

The required documentation is straightforward: a valid passport, Portuguese tax number (NIF), and proof of funds. The NIF can be obtained quickly through the Portuguese tax office or appointed representatives, and the entire process can be completed remotely with proper legal assistance.

The paperwork process is considered transparent and secure compared to many other European markets. A typical purchase involves a promissory contract (CPCV), followed by the final deed (escritura) at the notary office. The entire legal process usually takes 30 to 60 days from offer acceptance to completion.

Local legal representation is highly recommended, especially for first-time foreign buyers, to navigate contract terms, ensure proper due diligence, and handle the bureaucratic aspects efficiently.

How reliable are the property listings online compared to what you actually find when visiting?

Online property listings in Lisbon are often outdated, inaccurate, or misleading, making in-person viewing essential for serious buyers.

Many properties listed online are already under offer or have been sold, but the listings remain active for weeks. Price discrepancies are common, with actual asking prices sometimes differing from what's advertised online.

Photo quality and property condition often don't match reality. Many listings use wide-angle lenses or older photos that make spaces appear larger or better maintained than they actually are. Apartment conditions, building maintenance, and neighborhood characteristics can only be properly assessed through personal visits.

The most reliable approach is working with trusted local agents who have current market knowledge and can arrange viewings of genuinely available properties. Online listings should be used as a starting point for research, not as the basis for purchase decisions.

Properties that seem too good to be true online usually are, and viewing multiple similar properties in person helps calibrate expectations for the actual market conditions in your target area.

What condition are most resale apartments in—are renovations usually minor touch-ups or full-scale projects?

Most resale apartments in Lisbon require at least moderate renovation work, with many needing significant updates to meet modern living standards.

Surface-level touch-ups like fresh paint, minor repairs, and cosmetic improvements are common requirements for apartments built in the last 20-30 years. However, older buildings, especially those constructed before the 1980s, often need substantial work including electrical updates, plumbing modernization, and sometimes structural improvements.

Many Lisbon apartments still have original fixtures, outdated kitchens, and bathrooms that haven't been updated in decades. Windows, heating systems, and insulation in older buildings frequently need complete replacement to meet current comfort and energy efficiency standards.

New builds and recently renovated properties command a significant price premium but are move-in ready. These properties typically cost 20-40% more per square meter but eliminate the time, cost, and hassle of renovation work.

Budget for renovation unless you're specifically buying a recently updated property, and factor renovation costs and timelines into your purchase decision, especially if you need to move in quickly or start generating rental income.

How much can I expect to pay for a full renovation in Lisbon, and how long does it normally take?

A full professional renovation in Lisbon costs between €700 and €1,500 per square meter, with luxury or historic building renovations potentially costing more.

For a typical 70-square-meter apartment, expect to spend €49,000 to €105,000 for a complete renovation including new kitchen, bathroom, flooring, electrical, plumbing, and cosmetic work. High-end finishes, structural changes, or historic building requirements can push costs above €1,500 per square meter.

Timeline expectations vary significantly based on scope and complexity. Minor renovation work like painting, flooring, and basic kitchen/bathroom updates typically take 1 to 3 months. Major renovations involving structural changes, electrical/plumbing overhauls, or historic building compliance can take 6 to 12 months.

Delays are common due to bureaucratic permit processes, contractor availability, and material delivery issues. It's wise to add 20-30% buffer to both timeline and budget expectations.

Historic buildings in central Lisbon often require special permits and materials that comply with heritage preservation rules, which can significantly increase both costs and timelines.

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

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.

How much rent could I realistically get if I bought a place and rented it out short-term or long-term?

Long-term rental yields in Lisbon average 4-5% annually, while short-term rentals can achieve 4-7% in high-tourist areas, though new regulations are limiting short-term rental opportunities.

For long-term rentals, a one-bedroom apartment in central Lisbon typically rents for €1,400 per month, while similar properties in outer neighborhoods like Olivais or Marvila rent for €1,000 to €1,100 per month. A two-bedroom apartment in central areas commands €1,800 to €2,200 monthly, with peripheral areas ranging from €1,300 to €1,600.

The highest rental yields come from affordable neighborhoods like Marvila, Olivais, and Benfica, where lower purchase prices combined with decent rental demand create yields above 5%. Prime central areas often yield only 3-4% due to high purchase prices relative to rental income.

Short-term rental regulations are becoming increasingly restrictive, with new AL (Alojamento Local) licenses difficult to obtain in central areas. Existing short-term rental properties in tourist zones can generate €80 to €150 per night, but occupancy rates and regulatory compliance costs must be factored into yield calculations.

The most realistic investment strategy focuses on long-term rentals in emerging neighborhoods with good transport connections and rental demand from locals and professionals.

What are the ongoing costs of owning an apartment in Lisbon, like condo fees, property tax, and utilities?

Monthly ownership costs typically range from €200 to €400 for a standard apartment, depending on size, building amenities, and usage patterns.

Condominium fees range from €40 to €150 per month, with higher fees for buildings that have elevators, doormen, pools, or extensive common areas. Older buildings without major amenities typically charge €40 to €80 monthly, while modern buildings with services can charge €100 to €150 or more.

IMI (annual property tax) is relatively low at 0.3% to 0.8% of the property's tax value, which is usually significantly lower than market value. For most apartments, this translates to €500 to €2,000 annually, depending on the property's assessed value.

Utility costs for a typical apartment run €100 to €200 monthly, including electricity, water, gas, internet, and basic cable. Heating costs are generally lower than northern European cities due to the mild climate.

Additional costs include building insurance (if not included in condo fees), regular maintenance reserves, and occasional special assessments for major building repairs or improvements.

How safe are the different areas at night, and how is the access to schools, hospitals, and public transport?

Most Lisbon neighborhoods are safe for residents and visitors, with only minor concerns in certain nightlife districts and tourist areas.

The safest residential areas include Campo de Ourique, Estrela, Alvalade, and Avenidas Novas, which have strong community presence and good lighting. Central areas like Bairro Alto and Cais do Sodré can be noisier at night due to nightlife but are generally safe, though pickpocketing occasionally occurs in crowded tourist zones.

Emerging neighborhoods like Marvila and Beato are improving rapidly in terms of safety and infrastructure as urban regeneration projects progress, though some areas still feel less developed at night.

Public transport access is excellent throughout Lisbon, with metro, tram, and bus networks covering all major neighborhoods. The metro system connects most residential areas to the center within 30 minutes, and the extensive bus and tram network fills gaps in metro coverage.

Healthcare access is high quality with both public and private options available throughout the city. Major hospitals are accessible by public transport, and neighborhood health centers provide local care.

School quality is generally good, with both public and international schools available. Family-friendly neighborhoods like Campo de Ourique, Alvalade, and Estrela offer particularly good access to quality educational institutions.

How much leverage do you actually have to negotiate on the asking price, and what's a realistic discount to expect?

Negotiation margins in Lisbon typically allow for 2-6% discounts on asking prices, with larger discounts possible in less competitive segments.

In the highly competitive affordable market (properties under €5,000 per square meter), sellers often hold firm on prices due to multiple interested buyers. Discounts of 2-3% are more realistic in these situations, and cash buyers have the strongest negotiating position.

Properties priced above €6,000 per square meter or those that have been on the market for several weeks offer more negotiation room. Discounts of 4-6% are achievable, especially if you can identify maintenance issues, building problems, or other property-specific concerns during viewing.

Overpriced properties in less fashionable areas or apartments requiring significant renovation work can sometimes be negotiated down by 8-12%, particularly if they've been listed for months without serious interest.

The strongest negotiating position comes from being a cash buyer with proof of funds, pre-approved financing, or the ability to close quickly without contingencies.

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

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. MonoEstate - 2025 Lisbon Property Market Guide
2. Portugal Residency Advisors - Cost of Living in Lisbon
3. Portugal Residency Advisors - Cheapest Places to Buy in Lisbon
4. InvestRopa - Lisbon Price Forecasts
5. Idealista - Lisbon Most Expensive Homes
6. Propuno - Best Lisbon Neighborhoods for Investment
7. Global Property Guide - Portugal Square Meter Prices
8. Statista - Portugal Property Prices by Region