Where to stay in Lisbon for budget travelers like us – 6 Best!

Figuring out where to stay in Lisbon, especially for budget travelers, can be a daunting task. It’s a big city, with unfamiliar neighborhoods. We’ve been there!

Our first Lisbon visit was just a few days, but we were hooked and returned after a month in Faro. While our ideal neighborhoods might differ from yours, we’ve drawn on this experience to create this comprehensive guide and give you some context to help you figure out where to stay in Lisbon that best suits your travel style.

Are You In A Hurry?
Here are the best place to stay overall.

🥇 Best Hotel Overall — Alecrim ao Chiado
🎯 Best Budget-Friendly — Vila Garden Guesthouse
Cheap Hostel – City Center Guest House

and if you’re looking to splurge check out 💎 Best Luxury Hotel — Olissippo Lapa Palace

Before we dive into where to stay in Lisbon we wanted to give you a little Lisbon 101, info on stuff that may help you figure out where you want to stay:

Hills & Names Explained

Hills…. Did you know that Lisbon is called the “City of Seven Hills”?

Because of the hills, Lisbon is full of incredible viewpoints, called “miradouros.” While providing breathtaking panoramas of the city, the Tagus River, and rooftops, the hills also mean walking around Lisbon involves a lot of climbing and descending which can also be a factor when choosing your accommodations.

Don’t worry, though! Lisbon also boasts flat areas perfect for leisurely strolls. Before you get swept away by the stunning photos of pastel-colored houses cascading down a hillside, consider how Lisbon’s hills might impact your stay. The decision boils down to your personal preferences.

Are you a fitness enthusiast who welcomes a daily dose of incline, or do you crave a flat, walkable area? Do you dream of waking up to a million-dollar view, or is easy access to shops and restaurants a priority?

Fortunately for those of us that aren’t in the best of shape Lisbon has funiculars (cable cars) and trams that climb the hillsides, plus rideshare services like Uber and Bolt.

Tips to help you choose a location that perfectly suits your walking preferences and ensures a comfortable and enjoyable stay.

  • Look at Photos: Pictures can be very telling! Pay attention to the background scenery surrounding the accommodation. Are there streets sloping upwards significantly? Can you see rooftops from the view?
  • Utilize Google Maps: Utilize Google Maps’ Street View and Terrain functions to virtually explore the area around your potential accommodation. Navigate the streets virtually and get a feel for the incline of the roads and sidewalks.
  • Contact the Accommodation Directly: Don’t hesitate to reach out to the property you’re considering. Ask them directly if the area is flat or hilly, and if there are any significant slopes to be aware of when getting to the accommodation itself.

Confusing Place Names For Visitors

Lisbon’s place names can be confusing for visitors, especially when it comes to where to stay as the neighborhood boundaries are often unclear. For example, the elegant shopping area of Chiado might be considered part of the larger Baixa district by some. Landmarks become synonymous with the surrounding area, even though they might not be technically separate neighborhoods. Rossio Square is a perfect example – it’s a major landmark within the Baixa district, not a separate entity. Alfama presents a similar issue; although it’s not officially recognized as a distinct district, t holds a unique identity and is frequently referred to separately by locals and visitors.

How we chose what to include in our guide

We realize that our idea of the best areas to stay in Lisbon might not be the same as yours, so we though you might like a little context to how we chose what to include in our guide:

We’re Jeff and Sandra, retirees and fulltime travelers, exploring the world on a budget. When we decide which countries to visit we then spend hours searching for places to stay that we can afford on our modest budget. We carefully read descriptions and reviews on multiple booking platforms, look at photos (paying close attention to the background scenery and looking for other clues) and utilize google map’s various functions to get to know the neighborhood, making a ton of notes along the way.

For our first visit to Lisbon (just a few days) we stayed in the Baixa District near Rossio square near the center of Lisbon. While there was a bit of a incline to our accommodations it was only a ten minute walk down to the shops and restaurants.

The second time we stayed in the Alcântara neighborhood for more of a locals vibe and even though it’s hillier and further away from the historical center of Lisbon, it was just two minute walk uphill to the 18 tram (uphill) or downhill to the bus stop making it easy to access public transportation and get to all the sites.

So without much further ado here is our…

6 Best areas to stay in Lisbon for budget travelers

1. Misericórdia/Santa Maria Maior – historic center of Lisbon

The historic district of the city center boasts charming squares and affordable guesthouses. Safety’s top-notch, and everything’s within walking distance or easily access via public transportation. Landmarks? You’re smack dab in the center, with sights like São Jorge Castle, Praça do Comércio and Lisbon Cathedral a short stroll away. When researching accommodations in this area you might also see the several well-known neighborhoods, including: Baixa/Chiado, Sé, Castelo, Mouraria and Alfama

Budget-Friendly Stays in Lisbon’s Historic Center

Cheap Homestays and Hostels
Best Budget Friendly Stays
Best Hotels

2. Santo Antonio

Offers a mix of luxury and local vibes. The Avenida da Liberdade area is known for its high-end shops and a reputation similar to Beverly Hills. Príncipe Real, another area within Santo António, offers a more trendy and hipster atmosphere. However it is possible to find affordable accommodations!

Where To Stay In Santo Antonio

Cheap Homestays and Hostels
Best Budget Friendly Stays
Best Hotels

3. Mouraria

Alfama’s feisty neighbor, Mouraria also known as the Moorish Quarter, boasts a rich Fado heritage and a labyrinthine charm. Think snug cafes, friendly locals, and affordable digs. Landmark proximity? Not bad! You’re a short walk from São Jorge Castle and a scenic tram ride to the city center.

Where To Stay In Mouraria

Cheap Homestays and Hostels
Best Budget Friendly Stays
Bairro Alto, Lisbon, Portugal

4. Santos-o-Velho

Nestled between Alfama and Bairro Alto, Santos-o-Velho offers a charming escape from the tourist crowds. Budget hotels and guesthouses abound. Safety’s good, and you can easily explore on foot. Landmarks? Alfama’s right on your doorstep, and a quick stroll gets you to the city center.

Where To Stay In Santos-o-Velho

Cheap Homestays and Hostels
Best Budget Friendly Stays
Best Hotels
Alfama area Lisbon Portugal

5. São Vicente

Alfama’s neighbor to the east, São Vicente boasts a local vibe with hidden gems like the Fado Museum. Budget hotels and guesthouses are plentiful. Safety’s good, and it’s very walkable. Landmarks? Alfama’s a short walk away, and you’re close enough to the city center for easy exploration.

Where To Stay In São Vicente

Cheap Homestays and Hostels
Best Budget Friendly Stays
Best Hotels
Best areas to stay in Lisbon for budget travelers 1

6. Santa Catarina

This trendy district near Chiado offers a vibrant atmosphere and a mix of budget hotels and guesthouses. Safety’s excellent, and it’s perfect for exploring on foot. Landmarks? Chiado and the city center are right there, and you’re close to the Carmo Convent ruins.

Where To Stay In Santa Catarina

Cheap Homestays and Hostels
Best Budget Friendly Stays
Best Hotels
Best areas to stay in Lisbon for budget travelers 3

Finding Your Best Areas to Stay in Lisbon

Lisbon’s a city full of character, with diverse neighborhoods offering something for everyone. Whether you crave charming cafes in Alfama, trendy shops in Príncipe Real, or easy access to transportation in Baixa, there’s a budget-friendly option waiting for you.

This guide has explored six neighborhoods well-suited for budget travelers, each with its unique charm. Remember, factors like walkability and proximity to attractions can also influence your decision.

Ready to explore Lisbon?

For a more in-depth look at each neighborhood, check out the links provided throughout the guide. Happy exploring!

Additional Tips:

  • Consider the time of year you’ll be visiting. Prices can fluctuate depending on the season.
  • Look for deals and special offers, especially during the shoulder seasons (spring and fall).
  • Hostels are a great option for budget-minded travelers who don’t mind shared spaces.
  • Consider guesthouses and small family-run hotels for a more local experience at a reasonable price.

By following these tips and using the information in this guide, you’ll be well on your way to finding the perfect and affordable place to stay in Lisbon for your budget travel adventure.

Planning a trip to Lisbon, Portugal? Check out our resources page!