Lisbon: A City Getting More Expensive and Still Worth It

Lisbon has changed fast since 2015. Short-term rentals pushed long-term residents out of Alfama and Mouraria. Coffee that cost €0.65 five years ago costs €1.20 now. Certain streets that were genuinely neighbourhood streets are now lined with souvenir shops. None of this has fundamentally broken the city. The food is still excellent, the trams are still there, the Tagus is still wide and silver on autumn evenings, and the hills are still real hills that make your legs work.

The Neighbourhoods

Alfama is the oldest neighbourhood, climbing the hill below the castle. The narrow streets, the laundry on lines between windows, the Fado coming from small bars - it is genuinely atmospheric and also genuinely full of tourists during peak season. The viewpoints (miradouros) above and within Alfama are worth the climb: Miradouro da Graça, Miradouro de Santa Luzia, and Miradouro das Portas do Sol all face south towards the Tagus.

Mouraria is directly adjacent to Alfama and less touristic. The Intendente area within Mouraria has been gentrifying but retains a working neighbourhood character that Alfama has largely lost. The best everyday Lisbon experience is walking from Martim Moniz square up through Mouraria on a weekday morning.

Principe Real is where you want to spend money: restaurants, wine bars, independent boutiques, and the weekend market at Mercado de Campo de Ourique nearby. Calmer than Baixa-Chiado, more affluent and conscious of it.

LX Factory (Alcantara, 20 minutes west of the centre): a converted 19th-century industrial complex with restaurants, vintage shops, bookshops, and a Sunday market. More genuinely interesting than the tourist circuit suggests. The bookshop Livraria da Travessa has the best English-language travel section in Lisbon.

What to See

Belém Tower: 16th century, UNESCO-listed, photogenic from the outside, interior modest. The Manuel I architectural style (Manueline - late Gothic with maritime motifs) is specific to Portugal and this is one of the best examples. The adjacent Jeronimos Monastery is larger, better, and more interesting architecturally. Allow 1-1.5 hours for the monastery.

Castelo de São Jorge: the Moorish castle above Alfama. Views from the battlements are the reason to go; the archaeological excavation within (ongoing, layers of habitation going back 2,500 years) is surprisingly good.

Museu Nacional do Azulejo (Xabregas, eastern Lisbon): the national tile museum in a converted convent. Azulejo tiles are Portugal’s great decorative art form and this is the best collection. Undervisited, worth two hours.

Museu Calouste Gulbenkian: Lisbon’s best general museum, covering Egyptian antiquities through Lalique glass and Rubens paintings. The Gulbenkian Foundation grounds are also one of the better green spaces in the city.

Tram 28E: the famous tram route through Alfama is genuine (the Remodelado trams are the original 1930s vehicles, not replicas) but it is overloaded with tourists and pickpocket-vulnerable. The queue is long; the ride is short. Worth it for one journey if you want it, but not the main event.

Eating

Lisbon has a lot of good restaurants now. A few honest recommendations:

Tasca do Chico (Rua do Diário de Notícias 39, Bairro Alto): small Fado tasca, no-frills, authentic Fado by local singers rather than professionals. Dinner plus the music, around €25-35 per person. Reserve ahead - 20 seats.

A Cevicheria (Principe Real): the best ceviche in Portugal from chef Kiko Martins. Deliberately short menu, ingredients change with what’s available. Around €35-50 per person.

Cervejaria Ramiro (Avenida Almirate Reis): Lisbon’s benchmark shellfish restaurant. Queue outside from 19:00; they don’t take reservations. Order percebes (goose barnacles), gamba tigre (tiger prawns), and the steak sandwich at the end. Budget €50-70 per person.

Time Out Market (Cais do Sodré): indoor food market with stalls from notable Lisbon restaurants. Yes, it’s a tourist magnet. But the quality is genuinely higher than a typical food court and it’s excellent for a quick lunch without committing to a full restaurant experience.

Pastel de Nata: the standard is Pasteis de Belém (Rua de Belém 84-92), the original bakery near the monastery. The line is always long; the pastry is worth it. For the same quality with no queue: Manteigaria (Chiado and Mercado da Ribeira).

Getting Around

The Viva Viagem card (€0.50 for the card, top up as needed) covers the metro, trams, buses, and the Tagus ferry to Cacilhas. Worth buying immediately on arrival.

Metro: covers most of central Lisbon and goes directly to the airport (red line, 20-25 minutes from Oriente station). Clean, frequent, €1.61 per single journey.

Taxis and Uber: both widely available and cheap by northern European standards. A cross-city trip rarely exceeds €10.

Staying

Bairro Alto Hotel: one of the best hotels in the city, traditional facade hiding a sophisticated interior, central location, around €300-500 per night.

Internacional Design Hotel (Rossio): design hotel at a genuinely central location, less expensive than Bairro Alto at €120-200.

Pensão Amor (Rua do Alecrim): boutique guesthouse in a former brothel, theatrical decor, Cais do Sodré location, around €100-160.

Lisbon Lounge Hostel (Chiado): consistently the best-reviewed hostel in the city. Social atmosphere, central, dorms from €25.

When to Go

June through September is peak tourist season and summer heat (35 Celsius in July and August). Spring (March-May) and autumn (September-November) are the best months: pleasantly warm, lower prices, fewer crowds. February is cold but inexpensive and the city is genuinely quiet.