Top 7 Areas in Lisbon for Renting Apartments on a Budget

Lisbon, the stunning capital of Portugal, is a dream destination for many. However, finding affordable rental apartments can be challenging, especially for newcomers. 

While some neighborhoods are known for their luxury real estate, others provide budget-friendly options with excellent amenities. This guide explores the top seven areas in Lisbon where you can rent an apartment without breaking the bank

Each area is evaluated based on affordability, accessibility, lifestyle, and community vibe, ensuring you find the best place that suits your needs.

1. Alfama – A Historic Gem with Affordable Living

Alfama, one of the oldest districts in Lisbon, offers a unique blend of history, culture, and affordability. Known for its labyrinthine cobbled streets, soulful Fado music, and stunning traditional Portuguese architecture, Alfama exudes an old-world charm that captivates both locals and visitors alike. 

This neighborhood is home to numerous historic buildings that have been carefully restored, providing residents with the perfect mix of authenticity and modern comforts. Despite its cultural significance, Alfama remains one of the more budget-friendly options in central Lisbon, making it an attractive choice for renters who value heritage and affordability.

Key Features:

• Average Rent: €800 – €1,200/month
• Lifestyle: Traditional, artistic, and community-focused
• Transportation: Well-connected with trams and metro access
• Nearby Attractions: São Jorge Castle, Fado Houses, National Pantheon

Insider Tip:

If you’re looking for an affordable apartment, consider renting in the upper Alfama area, where prices are slightly lower than in the center.

2. Graça – Affordable Living with Stunning Views

Perched atop one of Lisbon’s seven hills, Graça is a lively and authentic neighborhood that offers some of the most breathtaking panoramic views of the city. 

It boasts a strong sense of community, with traditional Portuguese bakeries, charming local cafes, and a mix of modern and historic architecture. This area is known for its affordability, making it a sought-after destination for students, young professionals, and families looking for a balance between tradition and contemporary living. 

With well-connected transport options and easy access to iconic landmarks, Graça presents an ideal blend of scenic beauty, convenience, and budget-friendly housing.

Key Features:

• Average Rent: €750 – €1,100/month
• Vibe: Local, scenic, and community-driven
• Transportation: Bus and tram connections
• Nearby Attractions: Miradouro da Senhora do Monte, Graça Convent

Pro Tip:

Look for rental deals in the less touristy areas of Graça to secure a lower price while still enjoying the breathtaking city views.

3. Arroios – Lisbon’s Multicultural Hub

Arroios is one of Lisbon’s most diverse and dynamic neighborhoods, offering a rich blend of international cultures, vibrant nightlife, and budget-friendly rental options. 

Known for its trendy cafes, multicultural restaurants, and artistic scene, Arroios attracts students, expats, and young professionals looking for an energetic yet affordable place to live. With easy access to public transportation, including metro, buses, and trams, commuting to Lisbon’s city center and beyond is seamless. 

Additionally, Arroios is home to lively markets, green spaces, and a thriving coworking community, making it an ideal hub for digital nomads and remote workers.

Key Features:

• Average Rent: €700 – €1,000/month
• Diversity: Multi-cultural, trendy, and vibrant
• Transportation: Metro, buses, and trams
• Nearby Attractions: Mercado de Arroios, Fonte Luminosa

Case Study:

Many digital nomads have chosen Arroios due to its affordable coworking spaces and high-speed internet availability.

4. Anjos – A Bohemian Neighborhood with Budget Apartments

Anjos is swiftly transforming into a vibrant hotspot for creatives, young professionals, and entrepreneurs. With its eclectic street art, bustling cultural festivals, and relatively affordable rental prices, this neighborhood fosters an energetic and welcoming environment that attracts those seeking a modern, alternative lifestyle.

Key Features:

• Average Rent: €650 – €950/month
• Vibe: Artistic, laid-back, and innovative
• Transportation: Metro and bus services
• Nearby Attractions: Intendente Square, Casa Independente

Tip for Renters:

Check out rental listings on local Portuguese websites to find better deals in Anjos rather than relying solely on international rental platforms.

5. Alcântara – Affordable Riverside Living

Alcântara is a fantastic area for those looking to live near the river without the premium prices of neighboring Belém. It boasts a unique blend of historic charm and contemporary living, offering a variety of traditional homes and stylish modern apartment complexes. 

Additionally, its thriving startup scene, vibrant cultural spaces, and proximity to Lisbon’s waterfront make it a dynamic and affordable choice for renters.

Key Features:

• Average Rent: €750 – €1,100/month
• Lifestyle: Waterfront, trendy, and industrial-chic
• Transportation: Bus, tram, and train connectivity
• Nearby Attractions: LX Factory, Docas de Santo Amaro

Local Insight:

Consider renting in the Santo Amaro area of Alcântara for a quieter residential experience at lower prices.

6. Campo de Ourique – A Residential Haven for Families

Campo de Ourique is one of Lisbon’s most sought-after residential neighborhoods, particularly favored by families and long-term renters seeking a calm yet well-equipped community. 

Nestled in the western part of the city, this area offers a perfect blend of tranquility and urban convenience, making it a desirable choice for those who value quality living. 

While the rental prices here are slightly higher than in some of the more budget-friendly neighborhoods, it remains a more affordable alternative compared to Lisbon’s central districts, such as Chiado or Príncipe Real.

Why Choose Campo de Ourique?

One of the key advantages of Campo de Ourique is its strong sense of community. Unlike some of Lisbon’s more tourist-heavy areas, this neighborhood has retained its authentic Portuguese charm. It boasts wide, tree-lined streets, plenty of green spaces, and an array of local shops, cafes, and bakeries that cater to residents rather than visitors. 

The area is particularly popular among families due to its proximity to some of Lisbon’s top-rated schools, including international institutions, making it a fantastic choice for expat families.

Despite being a peaceful neighborhood, Campo de Ourique is far from isolated. Well-connected by public transport, residents have easy access to Lisbon’s main hubs via buses and the historic tram system. 

The neighborhood’s self-sufficient nature, combined with its accessibility and welcoming atmosphere, makes it an ideal place for long-term renters looking for stability and comfort.

Key Features:

• Average Rent: €900 – €1,300/month
• Vibe: Family-friendly, relaxed, and self-sufficient
• Transportation: Buses and trams
• Nearby Attractions: Campo de Ourique Market, Jardim da Parada, Amoreiras Shopping Center

Local Attractions and Amenities

• Campo de Ourique Market: A lively spot where you can find fresh produce, gourmet food stalls, and a variety of restaurants catering to all tastes.
• Jardim da Parada: This central park is a popular meeting spot for families and children, featuring playgrounds, shaded benches, and a relaxed environment.
• Amoreiras Shopping Center: A short distance away, this shopping mall offers an excellent range of stores, dining options, and even a panoramic viewpoint of Lisbon.

Rental Tip:

If you’re considering a long-term rental, Campo de Ourique offers excellent deals for family-sized apartments, particularly in quieter streets away from the main thoroughfares.

7. Penha de França – A Hidden Gem for Budget Renters

Tucked away from Lisbon’s bustling tourist zones, Penha de França remains one of the city’s best-kept secrets for budget-conscious renters. 

This underrated residential area offers some of the best rental prices in the city while providing excellent connectivity, breathtaking views, and a peaceful living environment. If you’re looking for an affordable yet well-located neighborhood, Penha de França should be on your radar.

Why Choose Penha de França?

Penha de França is known for its quiet streets, local charm, and stunning panoramic views over Lisbon and the Tagus River. Despite its relatively low profile compared to more famous neighborhoods like Alfama or Bairro Alto, it offers a solid selection of amenities, including supermarkets, traditional bakeries, and small local restaurants.

One of the standout features of Penha de França is its elevation. Many apartments in this area offer incredible views of Lisbon’s skyline, making it a fantastic place to live for those who appreciate scenic cityscapes. 

The neighborhood is also well-connected to other parts of Lisbon, with metro stations and several bus lines allowing for easy commutes to the city center.

Key Features:

• Average Rent: €650 – €900/month
• Vibe: Quiet, scenic, and residential
• Transportation: Buses and metro
• Nearby Attractions: Miradouro da Penha de França, Igreja de Nossa Senhora da Penha de França

Local Attractions and Amenities

• Miradouro da Penha de França: One of Lisbon’s lesser-known viewpoints, this spot offers breathtaking views of the city, particularly at sunset.
• Igreja de Nossa Senhora da Penha de França: A historic church with beautiful architecture and cultural significance.
• Local Markets and Shops: The area is home to traditional markets and small businesses, offering fresh produce and affordable dining options.

Rental Tip:

If you’re a digital nomad, student, or remote worker looking for an affordable yet well-located apartment in Lisbon, Penha de França provides some of the best value-for-money rental options in the city.

Wrap Up

Lisbon offers a diverse range of rental options, catering to a wide variety of lifestyles and budgets. Whether you’re drawn to the serene, family-friendly atmosphere of Campo de Ourique or the affordable, panoramic views in Penha de França, Lisbon has a neighborhood that fits your needs. 

From bustling, artsy districts filled with cultural hotspots to tranquil, residential areas ideal for long-term living, the city’s rental market provides ample choices for both locals and newcomers.

Before committing to a rental, take time to explore different neighborhoods, considering factors such as public transportation, access to amenities, and the overall vibe of the area. Doing so will ensure you find the perfect home that aligns with your lifestyle and budget. Whether you’re a young professional, a family, or a digital nomad, Lisbon offers countless opportunities for a comfortable and enriching living experience. Happy house hunting!

Before committing to a rental, consider factors such as transportation access, local amenities, and overall neighborhood vibe to ensure you find the best fit for your lifestyle. Happy house hunting!