Invest in Lisbon: Top Buy-to-Let Neighborhoods in West Lisbon.

Join the rise of Portugal’s capital with prime properties in: Alcântara and Estrela.

With steady growth in the short-term rental market, we have selected four neighborhoods ideal for investment, particularly for short-term rentals. Each area will include sub-neighborhoods and feature notable landmarks.

Lisbon is one of Europe's most profitable cities for real estate. That's now a fact.

Among 32 European countries, Lisbon ranks 6th for housing profitability in the rental market, behind Dublin, Rome, Riga, Bucharest, and Podgorica (Montenegro). The least profitable cities, according to the survey, are Oslo and Luxembourg.

A report by international real estate consultancy Global Property Guide found Lisbon's gross rental yield to be 5.65% at the end of June 2024. Other Portuguese cities listed in the report include Porto, Faro, Aveiro, and Braga. Setúbal topped the list, surpassing Lisbon, with a yield of 6.51%.

Lisbon, a 21st-century hub for European tourism, attracts remote workers, tech and innovation actors, and increasingly blends local and international residents. In the past five years alone, the number of international school places in the Lisbon region has increased by 93%. Now explore Alcântara and Estrela, among other top neighborhoods for short-term rental growth. Our next feature will focus on Arroios/Penha de França in Central Lisbon, and Beato/Marvila in East Lisbon. All our featured neighborhoods border the Tagus River and offer some of the best investment opportunities.

Alcântara: Post-Industrial Drive

Named from the Arabic "Al Qantara" (bridge), Alcântara is adjacent to the cultural hub of Belém and the elegant Estrela district.

Historical/Cultural Landmarks:

— 25 de Abril Bridge (1966)

— LX Factory (2008)

— MAAT (2016), Museum of Art, Architecture, and Technology

— MAC/CCB in Belém (2006), Museum of Contemporary Art

Green Landmark:

— Tapada das Necessidades

Best Viewpoint:

— Lovers’ Bench, Tapada das Necessidades

School:

— The Lisboan, School of Agriculture, University of Lisbon (ISA)

Café/Workspace:

— Copenhagen Café, Alcântara

For Foodies:

— Cantina LX, an early favorite at LX Factory. Once a canteen that served generations of workers since 1846. It was one of the first restaurants at Lx Factory when it opened to the public in 2008. Portuguese cuisine, prepared in a wood-fired oven, with a dimmed living room atmosphere. For wine, ask Antonio.

Sustainable Innovation:

— ALLO, Alcântara Office Spaces

63,366 sqm office concept by AURA & S+A (2023).

Alcântara

A Descriptive Overview

Still quiet, still local, and still diverse, Alcântara, with its remaining hairy houses, tells the story of a fast-disappearing Lisbon. The area is drawing more remote workers who invest in its post-industrial charm, located between two dynamic neighborhoods—cultural Belém on the right and elegant Estrela on the left. Alcântara, lying along the Tagus River and covered by the industrial marvel of the 25 de Abril Bridge, is seeing housing renovations on nearly every street.

After the 1755 earthquake, Alcântara became a prime location for building residences and Quintas (large country estates) as the royal family built their palace in Ajuda. It offered an ideal escape from the city, with easy access to both countryside and coastal areas. The train to Cascais from Alcântara Station takes only 30 minutes.

Public Transport and Accessibility

Alcântara is well connected by buses. Take for instance the perfect 728 route that runs from Beato-Marvila through key stops like Santos for Estrela, Cais do Sodré, and Alfama. Another way to commute along the Tagus River is via the 1,800 free GIRA bikes in operation in the 159 stations across the city. It is a great way to experience the city's gifted climate.

And the new Metro stations in Estrela and Santos are expected to open by the end of 2025.

Alcântara will also get its own station on the Red Line by late 2026, linking to the Sustainable Intermodal Line and offering direct access to Oeiras.

These major developments position Alcântara as one of Lisbon’s top investment opportunities in 2024–2025, with affordable entry prices on the housing market.

Our #goldendream fully furnished T2 apartment (with AC), seats on the top of the hill of one of the loviest enclaves in Alcântara. It is a basement flat with far stretching views over the city from the kitchen and dinning room.

The house is a classic Portuguese building (early 20st century), located just a short walk away to the future metro station of Alcântara. Superficie is 38m2 and price is €160,000. The current rental contract running until 26/01/25, is at €1200.

View property.

The T2 appartment and its street. Below: the view from its kitchen, followed by an archive image of the neighborhood.

The yellow circle highlight the preserved enclave, and its strategic location.

Attractions and Lifestyle

Alcântara appeals to a wide range of audiences, from long-term remote workers to short-term tourists. Famous for being home to the vibrant LX Factory, a converted industrial space that attracts both locals and tourists with its bars, live music, indie boutiques, and shops—all framed by the iconic 25 de Abril Bridge, which makes for instagram-worthy sunsets.

Historical Background

In 1846, Alcântara was home to the Companhia de Fiação e Tecidos Lisbonense, a textile company. Later, the space was used by the Companhia Industrial de Portugal e Colónias, a food processing company, and eventually became home to the Professional Yellow Pages printing office. After a long period of dormancy, LX Factory opened in 2008.

Straddling the center of Lisbon and the historical sites of Belém, LX Factory has become a hub for tech and art, drawing a new generation to the city. The factory site, blending creativity with industry, hosts a mix of tech studios, galleries, and furniture shops. Cantina, the restaurant is proof of this era. Watch LX Factory v1.0 "The Beginning to capture how the site looked in 2008. (Image below).

LX Factory Today

LX Factory is listed as the top location in The True Hipster Guide of Lisbon. It has evolved continuously to meet the needs of its young, transient audience. Visitors can browse books at the massive Ler Devagar bookstore, dance to electronic beats at Village Underground, or sample a wide range of cuisine, from sushi to meaty and vegan dishes, in its many restaurants. Boutique shops and lively bars keep the area buzzing year-round.

Alcântara as a Tourist Hub

In a 2021 report by ResearchGate, it was noted that the LX Factory plays a significant role in Alcântara's tourism development. The site is praised as a successful example of converting industrial space into a multifunctional complex while preserving its original atmosphere.

A Local’s Perspective

Camille, a French local homeowner, 31, who bought a one-bedroom in that same enclave, told us what she likes most: “It’s so easy to get out of the city from here. I can easily escape to surf at Costa da Caparica or drive to Peniche.” Without a car, the beaches from Caxias to Cascais are easily accessible from the Alcântara train station, and buses go to Costa da Caparica at walking distance from the area.

\With 2024 well underway, the Portuguese property market remains under the microscope. One of the most reliable sources, Idealista, confirms in its 2024 Property Outlook Market that regained political stability and a focus on sustainable developments are fueling growth and optimism:

“The spotlight shines brightly on Lisbon, which has climbed the ranks to become one of Europe's most coveted cities for property investment. The capital's allure remains a beacon for investors drawn to its vibrant culture, strategic location, eco-friendly renovations and developments, and its tech and innovation hubs.”

Above: View from the Palace São Bento. Below: Jardim Botânico, Principe Real.

Estrela: The Shining Star

With its sub-neighborhoods: São Bento and Santos

Historical/Cultural Landmarks:

— Palace of São Bento (Portuguese Parliament)

— Basilica da Estrela

— British Cemetery

Green Landmarks:

— Jardim da Estrela

— Praça das Flores

— Jardim Botânico

Charming Kiosks:

— Praça das Flores

— Jardim Príncipe Real

— Jardim da Estrela

— Jardim São Bento (10 AM — 11 PM)

Transport:

— The legendary Tram 28E and 25E pass through Estrela

— Multiple bus routes are available (709, 713, 720, 727, 728, 738, 773, 774)

— Rato, Estrela's closest Metro station, is the terminus of the Yellow Line

— By early 2026, Estrela and Santos will have their own stations on the Green Line!

Best Viewpoint:

— Bench in front of Museu de Arte Antiga (National Museum of Ancient Art)

Best Cafe— Workspace — Networking:

— Newly opened, the vast Copenhagen Coffee Lab in Santos.

School:

— ISEG (Lisbon School of Economics and Management)

ISEG (Lisbon School of Economics and Management), Lapa. Architecture: past and present.

For Food Aesthetes:

— Magnolia, located in Praça das Flores, opened in 2022. Founded by a Brazilian-Belgian duo, its terrace has since become a favorite. It serves breakfast, lunch, and praised dinners alongside a selection of Portuguese wines. CNN Traveller has it on its foodie list.

— Café Tehran is an independent space with a terrace also on Praça das Flores that offers fresh Persian cuisine. If you dream of healthy salads and freshly squeezed juices, this is the place for you.

— Arkhe, located near Rato, the Metro station, is one of the most refined vegetarian restaurants in Lisbon. It blends local Portuguese and French flavors, curated by co-owner Alejandro.

— Loco, with its Michelin star, is a must. The 16-course menu invites guests to explore flavors in an elegant, zero-waste environment.

Sustainable Innovation

Portugal’s architectural scene is eco-conscious, site-specific, and thoughtful. With an Atlantic coastline, untouched natural landscapes, and a rich blend of cultural and historical heritage, Portugal has become a magnet for 21st-century sustainable design. A great number of architecture and design studios are located in Estrela / Lapa.

Estrela means STAR*

A Descriptive Overview

Estrela is located northeast of Alcântara, west of Bairro Alto, and east of Belém. The name encapsulates the elegance of this quietly affluent district, located west of Lisbon’s historic center. With its rolling, toboggan-like streets and houses in pastel and sunflower colors, Estrela —like a star, branches into several areas, each with its own unique character.

On its hilltop facing the Tagus River, Lapa is a peaceful haven of walled embassies, grand 18th-century homes, and mansions. It carries the tranquil allure of Holland Park in London. Lapa always was a secretive residential enclave for the wealthy and powerful.

Bohemian chic São Bento centers around the Palace of São Bento (the Portuguese Parliament) and the charming Praça das Flores, which is frequented by locals and internationals alike. The area is surrounded by a distinctive selection of independent restaurants, bars, and cafes, including Pão de Canela, Café Marquise, Café Tehran, and restaurants like Magnolia and Flores da Pampa. Be sure to queue at the famous ice cream parlor Nanarella, and on Saturdays, visit the farmer’s market in Jardim do Príncipe Real.

Jardim da Estrela, at the top of the steep Calçada de Estrela, is a naturalistic garden inspired by the original design of English gardens. Since the 19th century, its winding paths, ponds, tropical trees, and varied vegetation have made it a favorite among locals. With its playground and two cafés, the park attracts people of all ages and lifestyles, from picnickers and joggers to dog walkers and book readers —until late in the evening. Nearby, Loco on Rua Navegantes is a must for serious foodies.

The Basilica da Estrela, a fine neoclassical monument from 1780, stands nearby with its dome illuminated by dusk's pastel lights. Close to the basilica, you’ll find the historic British Cemetery, dating back to 1717. The cemetery is also home to the remains of Lisbon's ancient Jewish cemetery and the St. George’s Church (Anglican), which holds services in English every Sunday. Behind the basilica lies the affluent neighborhood of Campo de Ourique, recently nicknamed "Champ d’Ourique" due to its growing French expat community.

Cafe Copenhagen, Santos. Basilica da Estrela. Bench Rua das Praças, Lapa.

Santos: A Realm of Delicatessen Experiences

Descending the steep Rua dos Quelhas past ISEG (Lisbon School of Economics), you’ll arrive at Rua da Esperança in Santos. Flanked by Santos Train Station on one side and the Museu Nacional de Arte Antiga on the other, Santos is Lisbon’s coined 'design district,' for its numerous design galleries. The area offers a wide range of independent restaurants, cafés, and delicatessen shops with Portuguese, Russian, Ukrainian, Middle Eastern, and French cuisine.

The district of Estrela, which loosely includes Lapa, Santos, and São Bento, is a prestigious part of Lisbon. It remains free from the massive tourism that concentrates around the historic city center and Alfama.

Bird view from Estrela. Jardim da Estrela. New metro lines.

Estrela: Where Tourism Stops

Estrela is a lived-in neighborhood where international aesthetes live alongside the Portuguese bourgeoisie. Those who value a contemporary, curated lifestyle in an elegant neighborhood often choose Estrela. It has the solidity and glamour of Notting Hill in London and the 'bobo-chic' vibe of Le Marais in Paris.

The area is yet laid-back, with a great mix of housing options. Some feature early 20th-century architecture, offering high ceilings and views of the Tagus River for the lucky ones. Other offers are charming, efficient RDC and pieds-à-terre, often furnished, where you can step outside in a relaxed, casual style—pajama vest and Birkenstocks for a quick coffee at the kiosk.

Use the Palace of São Bento as your compass. Now home to the Portuguese parliament, the building was originally a Benedictine monastery in the 16th century. By 1833, it had become the site of the Cortes and the Sovereign Congress during Portugal’s constitutional monarchy. This building encapsulates three key acts of Portuguese history.

On Rua São Bento, you’ll find the Casa Museu Amália Rodrigues, the former home of the "Queen of Fado," which adds the soulfulness of Portuguese saudade to any tour. Further up the street is the Cultural Center of Cabo Verde (CCVC), another vital heritage site, especially for music lovers.

Estrela effortlessly blends historical charm with modern living. For a touch of eclecticism, visit the Companhia Portugueza de Chá, an Argentinian affair that highlights what Portugal does best: welcoming entrepreneurs, traders, travelers, and navigators alike.

Slide down Rua de São Bento to witness the breadth of renovation projects and new developments. Designed to meet international investors' standards, Estrela is quietly and steadily evolving, with new metro stations, housing developments, and a focus on sustainable growth. It's hard to imagine anything that could disrupt the perfection of this lifestyle and its promises.

Companhia Portugueza de Chá in São Bento.

Best Investments in Estrela

Shouldered by two major green spaces, this fully furnished 30m² T1 apartment is strategically located at the intersection of Estrela, Campo de Ourique, and Alcântara. It’s a #goldendream opportunity for investment, as it currently operates as an AL (short-term rental), and the new owner can retain the license. Fully renovated, it includes an equipped kitchen with washing machine, and a seating area with views over Lisbon’s hills and its landmark, the 25th of April Bridge. The large bedroom features a closet and an office space. Bonus: Wake up to the song of emerald-blue peacocks, the masters of the Cactus Garden at Tapada das Necessidades. Price: €200,000 (price per m²: €6666). View Property

This #rarefind opportunity fully furnished and renovated 63m² T2 bedroom apartment, is located on the corner of Calçada de Estrela. Its two façades are flooded with natural light, one with direct views of the Palace of São Bento, the Portuguese Parliament, the other on the charming São Bento square with its pretty kiosk. Within walking distance, Rua São Bento offers everything suave: a liquor shop, a French bakery, Continente, paddle courts, antic stores, and art galleries. The Jardim da Estrela and the future Estrela metro station are on the top of the Calçada, and Praça das Flores is just a five-minute stroll away. Guess what... The legendary Tram 28 stops right here! Price: €399,000 (price per m²: €6333). View Property

Mojo Real Estate Solutions is an international team of experts helping you find your ideal property in Portugal and renting it short or long-term fully furnished via concierge services.

We scout and cherry pick the perfect property within your dream location, specifics, and budget. We lead the purchase process and all required renovations. If wished, we can place your property for short and long-term rent striving optimal yields for our investors. 

Call up anytime Portugal: +351.210.509.154

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