Lisbon is the most expensive place to buy and rent a house in Portugal. Idealista says that the price to rent in Lisbon in February 2022 is €13/m2. A 75m2 apartment could charge around €975 in the Lisbon district.
But a similar apartment in London or Amsterdam would cost twice as much. Most European cities are much more expensive than Lisbon. Compared to other Portuguese cities, most people who live there are not Portuguese. With 87 different nationalities, Lisbon is a diverse city that gives people from other countries a high quality of life.
- Lisbon is home to some of the best public schools.
- Public transportation that is cheap and works well
- Lisbon is only 15 minutes by car from the capital.
- Beautiful cities like Cascais and Sintra are close by.
- The best party scene in the country
- Top management positions and other high-paying jobs in Lisbon
- Lisbon has the most expensive rent and cost of living of any city in the world.
- Too full of tourists, with about 4.5 million coming every year.
- There isn’t good insulation or central heating in the houses.
How to Find a Rental Place in Lisbon
Even though prices are rising in Lisbon, many different places exist, from penthouses to studios and apartments. Most apartments will only be furnished, and landlords won’t want to help you move the furniture out. You can hire a rental agent from a well-known agency to help you find a place to rent. Here are some of Portugal’s most popular real estate websites and agencies that can assist you to find a home in Lisbon:
5 of the Best Neighborhoods in Lisbon
When watching for a place to rent in Lisbon, you should consider where you require to live for the next few months or years. Young professionals love how busy the city center is, but the closer you are to the center, the more it costs. There are places to live outside the Lisbon metropolitan area, including Cascais, Sintra, and Oeiras, which are all part of the Greater Lisbon area. Let’s talk about where we like to live in Lisbon.
Baixa, the city’s historic old town, is one of the capital’s most popular places to visit. If you lease an apartment in Baixa, you’ll be in the middle of the city and surrounded by buildings from the 1800s. There are many bus stops, tram stops, and metro stops, so getting around is easy.
Everything, like shops, restaurants, and markets, will be within a few minutes walk. On the other hand, Baixa can get very busy with tourists and locals, especially at night. If you’re a student or a youngster who loves a lively environment and nightlife, Baixa might be perfect for you, but it might not be a good place for families who want a quiet life.
Principe Real is one of the coolest places to live in Lisbon. It has the city’s best restaurants, bars, and art galleries. Principe Real has people from many different cultures, so there are many different kinds of restaurants. But the neighborhood is still very quiet, with buildings from the 1800s and many green spaces. The most popular location to live in Lisbon is Principe Real, so apartments aren’t as cheap as in other parts of the city.
Alfama is the earliest neighborhood in Lisbon. It is known for its beautiful streets, fado music, as well as the best views of the city. People of all ages live in this neighborhood, from seniors who have lived there for decades to young professionals and their families. But remember that Alfama’s narrow streets make it almost impossible to drive a car there. Alfama is also on a hill, so you will have to become accustomed to walking up steep streets.
Cascais is a fantasy land place to live in. Many people live in Cascais and drive to work in the capital, which is only 30 minutes away. Cascais is a town on the coast of Portugal. It is known for its beautiful bays, high-end hotels, and golden beaches. Cascais used to be a village of fishermen, and it still has great seafood markets, shops, and restaurants. Cascais is also one of the wealthiest places in Portugal, so homes tend to be more expensive there.
The mountainside of Sintra, a UNESCO World Heritage Site, is a 30-minute train ride from Lisbon. Sintra is also on the Portuguese Riviera. It is known for its beautiful palaces and mansions, gardens from the 1800s, and some of Portugal’s best beaches. Sintra is less crowded with tourists than Cascais, and there are many cheaper apartments to rent in Sintra than in Cascais.
Want to leave an apartment you rented in Portugal?
This is rare in Europe, but in Portugal, many rental contracts let you leave a third of the way through the contract. But you still have to move out, check the inventory, and give notice, which are all legal steps. If your contract has more than a year left, you must provide 120 days’ notice. If you need less than a year left, typically, 60 days is enough.
But if your landlord breaks the contract in about any way, you can end the lease early, like by not doing important repairs. Remember that your landlord can also give you notice if they want to move in themselves. The landlord would have to give you at least six months’ notice. The landlord must tell you at least two years in advance if you need a contract with no end date.
You’ll also need to look through the rental inventory. Before you moved in, you would have signed an inventory list of everything in the house. When you want to move, you and your landlord must go through this to ensure nothing is missing or badly damaged. If everything goes well, your deposit will be given back to you. Still, there is no hard deadline for when this needs to be done.
Should you purchase or rent a house in Lisbon?
If you can afford it, buying a house in Lisbon is a better option than renting because the value of homes keeps increasing. No one knows if this will continue for the next ten years, but the market value is expected to rise even more after COVID. To buy a house in Portugal, you don’t have to live there or be a resident.
You only need a Tax Identification Number, which you can get by opening a bank account in Portugal. If you buy a house in Portugal, you may also be eligible for the Portugal Golden Visa, which gives you the right to live permanently after 5 years and become a citizen after 6 years. But you should expect to spend at least €350,000 or €500,000 to buy a house.
Check out our International Guidance to Real Estate in Portugal for more data on how to purchase a house in Portugal. Our guide covers everything, from an overview of the property market to where to purchase a house, real estate taxes, and how to get Portuguese residency.