The Times
Living The Lisbon Life

Lisbon is one of Europe’s most beguiling cities - one, moreover, whose compactness make genuine city centre living a possibility. The proximity of superb beaches around Estoril, Guincho and Caparica even makes it a wonderfully buzzy alternative to the Algarve for those who want sand with their city culture.

Stretched along the wide estuary of the River Tagus, Lisbon spreads across various hills dotted with viewpoints - miradors - from which to admire the city’s maze of old cobbled streets and colourful 17th-19th century architecture. Few modern high rises mar the scene.
As well as rich historic charm, Lisbon boasts a wonderful temperate climate (sunny and pleasant even in midwinter), bags of culture, varied nightlife (from techno to fado), stylish shopping and a relaxed ambience. Cheap public transport - from old trams to modern metro - make getting around simple.

Apartment living is the norm in central Lisbon, ranging from period flats on ancient cobbled lanes to sleek contemporary riverfront penthouses. Some older districts such as Alfama offer small houses but for larger family homes you’ll probably need to look beyond the centre unless you can afford one of the substantial period beauties carved from former palaces in areas like Lapa.

Lisbon’s centre is wonderfully diverse. The most historic areas are Castelo, Alfama and Graca, sought-after by people looking for character property, often with fine views. Bairro Alto and Bica, meanwhile, offer a mish-mash of styles in the heart of the city’s cultural and nightlife - though avoid Bairro Alto if you don’t like noise as after dark its streets become the epicentre of Lisbon’s late night bar scene.

Lapa and Chiado are the city’s most expensive areas - Lapa mainly residential, Chiado adorned by upmarket shops. Principe Real, Santo Amaro and Amoreiras are also popular spots just off the central spine stretching from Praca Commercio by the river through Praca Pedro V and along the broad Avenida da Libertade.

At the base of this spine, Baixa sprang up in the wake of the earthquake and fire that devastated the city in 1755. Now an area of mainly 19th century buildings, Baixa’s orderly grid of pedestrianised streets offer excellent shopping and surprisingly affordable apartments. Baixa is marked down by local buyers partly for being dead at night but also because many of its apartment blocks lack lifts - and Lisboetas spend enough time climbing in their hilly city to appreciate lifts!

For a trendy location consider Santos, adjacent to the docks below the grand streets of Lapa. Though quite run-down, it has gained cache after its re-invention as a “Design District” with the arrival of modern design stores followed by a scattering of trendy bars and restaurants.

In Lisbon, however, “rundown” isn‘t necessarily bad - in fact, shabby chic is part of the very fabric of the city. Careworn beauty - crumbling plaster here, a colourful web of graffiti and torn posters there - is everywhere. Lisbon is likea beautiful older woman, proud of the filigree of time on her face and quietly confident in her enduring qualities.

So, is it expensive to court this beauty? Rather than just the sale price, Lisbon buyers think in terms of price per m2. “Prices range from €2000 - €5000 per m2,” says Paul Houston of agent Lucas Fox, who specialise in selling to foreign buyers. “An average two-bedroom apartment would be 100m2, a good area €3500 m2. So €350,000 will get you something very nice.”

Higher prices per m2 tend to apply to recent developments - either new-builds with security and underground parking, or luxury conversions of period blocks that keep the historic façade as a historic wraparound for modern apartments.

A fine example of luxury new-build is the just-completed Amoreiras Jardim Residence. Designed by a leading Portuguese architect, this glass and steel box sits amid much older buildings in the upmarket enclave of Amoreiras. The 13 spacious, white-walled apartments sport floor-to-ceiling windows and kitchens hidden behind sliding doors. Prices range from €245,000 for a 60m2 studio to €680,000 for a 120m2 two-bedroom. Several have been snapped up off-plan through agents Maexpa.  

Maexpa also have a prime example of the second kind of development - the Ajuda Palace Residence in Santo Amaro, a couple of miles from the heart of the city. Outwardly a beautiful 19th century corner block, inside 11 large apartments have been carved out in ostentatious luxury style. Again, many have already been bought off-plan, with prices from €330,000 for 52m2 to €540,000 for a 73m2 penthouse.

Where should the less wealthy look? In Santos, Lucas Fox have sold a four-bed 150m2 apartment for €340,000. Even in swish Chiado, classic 100m2 two-bed apartments can be had for €300,000 and a one-bed 60m2 half that. In Baixa, good-sized 2-bed apartments are available for under €250,000.

While tourists are drawn to the ancient cobbled maze that is Alfama, how about buyers? “Alfama is the oldest part of Lisbon and many buildings are in poor repair,” warns Paul Houston. “There are also fewer facilities like shops or banks. It’s a charming place to visit but not always an ideal place to live.”

But while locals might be less keen on rundown property, British buyers looking for a cheap historic gem in need of renovation may find older areas like Alfama, Castelo and Graca ideal hunting grounds. “For apartments needing renovation in old buildings you would assume €2000m2,” says Houston. Here then are areas where you might find a place with character for less than €150,000.

The market in Lisbon has been holding up despite the current financial turbulence. “We are seeing very few distressed sales,” says Paul Houston. “But vendors are much more open to negotiation than they were even 3 months ago.”

Mortgage conditions, however, have tightened as in the UK. “Banks are shifting from 80 per cent LTV down to 65 per cent LTV,” says Simon Perks of leading lender Santander Totta. “They are still offering mortgages for Portuguese property but being much more selective who they provide finance to.”

The pound’s recent plunge against the euro may have made Lisbon less of a bargain than before but this beautiful city still offers plenty to charm any buyer.

AGENTS:
Lucas Fox Portugal (+351 91 45 23 739, lucasfox.com)
Maexpa International UK sales: (020 7960 6039, maexpa-international.co.uk)