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
Where are the best places to invest in Lisbon right now? Is the historic Alfama district still the top pick, or are areas like Marvila, Alcântara, and Parque das Nações gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Lisbon and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Areeiro is gaining attention for its central location and competitive property prices compared to nearby areas
Areeiro is catching the eye of property buyers thanks to its central location and competitive prices.
In 2024, the median property price in Areeiro was €4,971/m², which is quite a bit lower than nearby Alvalade and Arroios, where prices were €5,820/m² and €5,885/m², respectively. This makes Areeiro a great spot for those looking to get more bang for their buck.
There's been a noticeable uptick in property transactions here, showing that more people are interested in buying. Local real estate agents are seeing more inquiries and deals, and they say it's because of Areeiro's central location and attractive pricing.
More properties are popping up on the market in Areeiro, which suggests that interest is growing. The media has been buzzing about Areeiro's rising prices and popularity, making it even more appealing to potential buyers.
Sources: Portugal Homes, Portugal Buyers Agent, With Portugal
2) Olivais is gaining interest for its family-friendly vibe and potential for long-term property appreciation
Olivais is catching the eye for its family-friendly vibe and potential for property value growth.
In 2023, property prices in Olivais jumped by 11%, marking one of the highest growth rates in Lisbon. Yet, the average price per square meter is still below the Lisbon average, making it a sweet spot for those looking for both affordability and investment potential.
Families love Olivais for its kid-friendly perks. The neighborhood boasts several parks and gardens, like the expansive Quinta Pedagógica dos Olivais, perfect for family outings. Plus, there are plenty of school options, both local and international, which adds to its family appeal.
Infrastructure upgrades have boosted Olivais' charm. The area is well-connected to central Lisbon with metro stations, making commuting a breeze. This easy access, along with low crime rates, makes Olivais a safe haven for families.
Sources: Hoodpicker, With Portugal, Casafari
We have made this infographic to give you a quick and clear snapshot of the property market in Portugal. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Parque das Nações is popular for its modern infrastructure and high rental demand from expats
Parque das Nações is a hotspot for expats thanks to its modern infrastructure and vibrant community.
With its sleek, contemporary architecture, this district is a magnet for young professionals, leading to high occupancy rates in rental properties. The area is not just about looks; it offers a lifestyle that appeals to those seeking convenience and modernity.
In 2024, property prices here soared to €5,965 per square meter, a testament to its popularity and investment potential. This area is frequently highlighted in real estate reports as a prime spot for stable rental income and property appreciation.
Expats are particularly drawn to short-term rentals, thanks to the area's modern amenities and strategic location. Being close to Lisbon's major transport routes and the international airport makes it a top choice for those on the move.
Surveys show that expats prioritize areas with efficient public transport, and Parque das Nações delivers with its Oriente Train Station, offering express services across Portugal. This connectivity is a major selling point for those looking to explore the country.
Sources: Be Global Properties, Global Citizen Solutions, Portugal Buyers Agent
4) Ajuda is gaining attention for its affordable homes and closeness to the new university campus
Ajuda is catching attention for its affordable housing options in Lisbon.
In this neighborhood, property prices are generally lower than in other parts of the city, making it a hotspot for budget-conscious buyers. The real estate cooperative REQUALITAS VIP is stepping up by planning to build 119 affordable rental homes and 114 market-price houses in Alto da Ajuda, showing a clear focus on keeping housing costs down.
Ajuda's appeal is also boosted by its proximity to the new university campus. Located within the University of Lisbon – Ajuda, this area offers stunning views of the Tagus river estuary and the Monsanto natural park. It's a perfect spot for students and young professionals who want both convenience and a beautiful setting.
The neighborhood is undergoing significant urban development, reflecting a broader effort to enhance its appeal. Since 2017, under Lisbon’s Affordable Rents program, Ajuda has been on a path to becoming a more attractive residential area, with the project reaching a milestone in 2023.
These developments are part of a sustained commitment to making Ajuda a viable place to live, with a focus on affordability and quality of life. The ongoing projects are not just about building homes but also about creating a community that offers both economic and environmental benefits.
Sources: Auraree, World Economic Forum
5) Beato is gaining attention for its industrial spaces turned creative hubs, driving real estate interest
Beato is turning heads as a trendy hotspot thanks to its transformation of old industrial spaces into creative hubs.
In recent years, property prices in Beato have surged by 41.7%, a remarkable leap compared to the rest of Lisbon. The current price per square meter stands at €4,578, reflecting a strong upward trend and growing interest in the area.
What's driving this boom? It's the conversion of industrial spaces into vibrant co-working areas and art studios. Arroz Estudios and NOW Beato are just a couple of examples attracting creative businesses and startups.
The Hub Criativo do Beato is a major player in this transformation. It's set to become one of Europe's largest creative hubs, drawing in more creative and tech companies eager to be part of this dynamic environment.
These changes are not just about real estate; they're about community and innovation. Beato is becoming a magnet for those looking to invest in a neighborhood that's buzzing with potential.
With its unique blend of history and modernity, Beato offers a compelling opportunity for property buyers seeking a slice of Lisbon's evolving landscape.
Sources: Hoodpicker, LBC Global, Energy Cities, Portugal Buyers Agent
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6) Benfica is gaining interest for its excellent schools and community-focused amenities
Benfica is becoming a hot spot for property buyers, thanks to its excellent schools.
Families are flocking to the area, drawn by the steady rise in school enrollment, especially in primary and secondary education. This trend highlights the growing interest in Benfica as a family-friendly neighborhood.
Beyond education, Benfica's community-focused amenities are a big draw. Residents rave about the local facilities, which cater to families and create a welcoming environment. Programs like the Happy Creche offer financial aid, making it easier for young families to settle here.
New school developments and expansions are underway, signaling a commitment to enhancing educational infrastructure. This makes Benfica even more appealing to families seeking a quality living environment.
Real estate experts are taking note, marking Benfica as a growing hotspot in the property market. The area's excellent schools and community amenities make it a top choice for expat families, who often prioritize good international schools.
Investment in local infrastructure and public services is on the rise, adding to Benfica's allure. This makes it a desirable location for both residents and investors, looking for a vibrant community with strong educational options.
Sources: Statista, Be Global Properties, Portugal Buyers Agent
7) Marvila is gaining attention for its urban regeneration and potential for property appreciation
Marvila is quickly becoming a hotspot for investors, thanks to its potential for property appreciation as it undergoes urban regeneration.
One of the driving forces behind this transformation is the €110 million Marvila I Project, which is revamping a historic building and an old winery warehouse into top-notch residential units. This kind of investment in infrastructure and public transport is a game-changer for the area.
Adding to the buzz, the Hub Criativo do Beato, once an army factory complex, has been turned into a lively hub for innovation and creativity. It's now a magnet for international companies in tech and creative industries, making Marvila a vibrant place for new businesses.
The Lisbon city council is also playing a big role by focusing on cultural heritage-led regeneration. This approach not only preserves historical buildings and industrial architecture but also promotes local traditions, enhancing the area's charm.
New residential and commercial developments are popping up, attracting a younger crowd. Projects like Marvila I are designed to bring in young professionals, which is expected to drive up property prices and rental demand.
This influx of young talent is breathing new life into local businesses, making Marvila an attractive spot for investors eager to capitalize on rental income.
Sources: With Portugal, Mediapolis Journal, Edu Hub Lisbon, RE Capital, Properstar
8) Alcântara is gaining interest for its modern developments and historic charm, driving up property values
Alcântara is a hotspot for property buyers, thanks to its unique mix of modern developments and historic charm.
In recent years, property prices in Alcântara have seen a significant rise, with the average price per square meter hitting around €7,493 in 2024. This surge has caught the attention of both local and international buyers, making it a prime area for future growth.
The neighborhood has transformed dramatically, with modern residential developments and luxury apartments popping up. Old warehouses and industrial sites have been turned into trendy apartments and office spaces, enhancing the area's appeal. The LX Factory, a creative and cultural hub, has been pivotal in this change, attracting creative professionals and young residents.
Alcântara's popularity is evident in the rising number of property transactions. It draws a diverse crowd, from young professionals to families, allured by its vibrant atmosphere and relatively affordable prices compared to central Lisbon.
Media often spotlight Alcântara as a desirable neighborhood, describing it as a trendy hotspot with a unique blend of history and modern living. This reputation continues to attract a wide range of buyers.
With its ongoing development and charm, Alcântara is a neighborhood that promises both investment potential and a lively lifestyle.
Sources: Bonte Filipidis, Lisbon Lisbon Portugal, Global Citizen Solutions
We made this infographic to show you how property prices in Portugal compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Campo de Ourique is attracting interest with high rental yields from rising demand among young professionals
Campo de Ourique is catching eyes for its impressive rental yields, thanks to a wave of interest from young professionals.
In this vibrant Lisbon neighborhood, rental yields average around 5.0%, outpacing areas like Alvalade and Avenidas Novas. This makes it a hot spot for investors seeking reliable returns. The buzz among young professionals is pushing up demand, which in turn is boosting property sales. This shift is fueled by Portugal's steady economic growth, especially with the rise of startups and tech firms in Lisbon, drawing in remote workers and young talent.
Real estate agents are spotlighting Campo de Ourique as a prime location for long-term rentals. It's a hit with families and young professionals alike, thanks to its lush green spaces, bustling indoor food hall, and a wide array of cafes and restaurants. The neighborhood offers a peaceful, laid-back vibe, and its closeness to international schools means rental properties enjoy high occupancy rates.
Campo de Ourique's charm lies in its blend of tranquility and convenience. The area is not just about quiet streets; it's a lively community with a strong sense of local culture. This makes it particularly appealing to those looking for a balanced lifestyle. The neighborhood's appeal is further enhanced by its accessibility to Lisbon's city center, making it a practical choice for daily commuters.
For those considering an investment, Campo de Ourique offers a unique mix of stability and growth potential. The neighborhood's ongoing popularity ensures a steady stream of tenants, while its evolving landscape promises future appreciation. This combination of factors makes it a compelling option for both seasoned investors and newcomers to the property market.
As Lisbon continues to thrive as a tech hub, areas like Campo de Ourique are set to benefit from the influx of young professionals seeking vibrant, well-connected neighborhoods. This trend is likely to sustain the high demand for rentals, ensuring that the area remains a lucrative investment opportunity.
Sources: Portugal Buyers Agent, Portugal Buyers Agent, With Portugal
10) Graça is attracting interest with its stunning views and traditional architecture, driving up property values
Graça is gaining popularity for its stunning views and traditional architecture, leading to increased property values.
In 2023, the average property price in Graça was around €5,018 per square meter, showing a strong interest in the area. This trend has continued into 2024, as the neighborhood beautifully combines its historic charm with modern amenities. Locals and newcomers alike are drawn to the unique blend of old and new, making it a sought-after spot.
Real estate agents in the area have noticed a rise in demand for properties, thanks to Graça's breathtaking views and historical architecture. This demand has steadily boosted the property market, positioning Graça as a safe investment choice. Even though the rental yield in Graça is about 4.6 percent, which is lower than the Lisbon Metropolitan Area average of 6.7 percent, it remains an attractive option for investors looking for solid returns.
Media coverage has significantly highlighted Graça's appeal, focusing on its scenic views and traditional architecture. This increased visibility has attracted more buyers and investors, eager to be part of this vibrant community. The number of property transactions in Graça has risen, indicating a growing interest in the neighborhood.
Surveys reveal that buyers are particularly drawn to areas with traditional architecture and scenic views, making Graça a top choice for many. The neighborhood's charm and character are undeniable, offering a unique living experience that blends the past with the present.
As Graça continues to evolve, it maintains its allure with a perfect mix of history and modernity. The neighborhood's transformation is a testament to its enduring appeal, making it a prime location for those seeking a blend of culture and convenience.
Sources: Portugal Buyer's Agent, Portugal Buyer's Agent
11) Lumiar is gaining attention for its green spaces and modern homes, attracting young families
Lumiar is becoming a hotspot for young families thanks to its appealing blend of green spaces and modern living.
The local government has invested heavily in creating lush parks and bike paths, especially through the Green Corridors initiative in the Alta do Lumiar area. This makes Lumiar a magnet for families who love outdoor activities and a healthy lifestyle.
Residential development is booming here, part of a larger trend in Lisbon. Both local and international investors are keen, spurred on by the Golden Visa program, which has led to the rise of modern living spaces that young families find irresistible.
While specific numbers for Lumiar aren't available, Lisbon's overall trend shows an influx of young families. The city is a tech hub and a favorite among digital nomads, increasing the demand for family-friendly neighborhoods like Lumiar.
These new developments are not just about housing; they are about creating a community. Modern amenities and a focus on sustainability are key features, making Lumiar a forward-thinking choice for new residents.
As more families move in, the neighborhood is evolving, offering a vibrant mix of tradition and modernity. Lumiar's transformation is a testament to its growing appeal among those seeking a balanced urban lifestyle.
Sources: Savills Residential Market Report 2023, Lisbon Green Corridors
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12) Penha de França is attracting first-time buyers with its lower property prices and excellent transport links
Penha de França is catching the eye of first-time homebuyers due to its appealing property prices.
In 2023 and 2024, the average price per square meter here was about €3,500, which is quite a bit lower than many other Lisbon neighborhoods. This makes it a great spot for those looking to step into the property market without breaking the bank.
Another big draw for Penha de França is its excellent transport links. The area is well-connected with major transport hubs and metro lines, plus regular bus services. This makes commuting a breeze, which is a top priority for many first-time buyers.
Local surveys and reports are showing a growing interest in Penha de França among first-time buyers. They often point to the neighborhood's affordability and transport options as major reasons for this trend.
Testimonials from those who've already bought here often highlight the affordability and convenience of the area. These personal stories give a real sense of why Penha de França is so appealing.
Sources: Home in Portugal, Portugal Buyers Agent
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.