Where to Stay in Lisbon
Cheapest areas, hostel districts, and budget tips
Our pick for backpackers
Stay in Alfama
Offers a good selection of affordable hostels and a strong sense of local culture and atmosphere.
Best Neighborhoods for Backpackers
Ranked by relevance for backpackers visiting Lisbon
Alfama
BudgetLisbon's oldest district, a maze of narrow, winding streets filled with Fado houses, historic charm, and stunning viewpoints.
- +Incredibly atmospheric and historic
- +Beautiful viewpoints (miradouros)
- +Authentic Fado music experiences
- -Very hilly and can be challenging to walk
- -Can be noisy with Fado music late at night
Baixa
Mid-rangeThe grand, grid-like heart of Lisbon, rebuilt after the 1755 earthquake, buzzing with commerce and tourist activity.
- +Central and flat
- +Excellent transport links
- +Lots of shops and restaurants
- -Can feel very touristy
- -Less authentic local feel
Bairro Alto
Mid-rangeBy day, a charming residential area; by night, it transforms into Lisbon's most vibrant nightlife hub, with countless bars and restaurants.
- +Incredible nightlife scene
- +Eclectic mix of bars and restaurants
- +Great sunset views from viewpoints
- -Extremely noisy and crowded at night
- -Can be very challenging to sleep if your accommodation is on a main street
Belém
Mid-rangeA grand, historic district west of the city center, home to UNESCO World Heritage sites and famous for its custard tarts.
- +Iconic historical monuments
- +Beautiful riverside promenade
- +Home of Pastéis de Belém
- -Further from the city center (requires public transport or a longer walk)
- -Can be very crowded with tour groups
Daily Budget (Budget)
EUR 60/day
Hidden Gems in Lisbon
Lesser-known spots the locals love
LX Factory
Nestled under the Ponte 25 de Abril bridge, this revitalized industrial complex is a vibrant hub of independent shops, artisan workshops, trendy restaurants, and art installations. It's a fantastic place to discover unique souvenirs and enjoy a creative atmosphere.
Mercado de Campo de Ourique
This traditional market has been beautifully modernized, offering a fantastic gourmet food hall experience alongside fresh produce stalls. Locals love it for its delicious variety of food options in a lively, authentic setting.
2 areas to be cautious about
Read our full safety guide for Lisbon