In recent years, Lisbon has become one of the most expensive cities in Western Europe to buy a house in.
Between 2020 and 2025, the average price per square metre in the capital rose by more than 60%, This has led to a growing number of Portuguese and foreign buyers moving out of the city limits.
The question is no longer whether to leave Lisbon, but where to go. This article analyses the most relevant alternatives for those who want to stay close to the capital without paying what Lisbon demands today.
What to evaluate before choosing
Before you decide, there are four factors that make the difference between a good choice and a commitment you'll regret:
Accessibility to Lisbon
How long does it actually take to get to the centre? The frequency of transport matters as much as the journey time.
Price per square metre
What's the real difference compared to Lisbon? Has the market recovered, or is there still room?
Quality of life
Green spaces, restaurants, culture, security. Day-to-day life beyond the commute.
Potential for valorisation
Is the area still changing, or has all the appreciation already been incorporated into the price?
The main alternatives to Lisbon in 2026
Almada: the best-known option has already lost some of its edge
The most obvious option for years, and that's precisely what explains the problem.
Almada is well served by 25 de Abril Bridge and by ferry, and the Cacilhas area has developed consistently. What has happened, however, is that much of Almada's advantage over Lisbon has disappeared.
Prices in Costa da Caparica and Cacilhas have risen sharply, and the gap to the capital continues to narrow.
For those who want a consolidated, well-serviced alternative with no surprises, Almada still makes sense.
For those still looking for a real window of opportunity, that window is essentially closed.
Setúbal: the best option for those who don't need to go to Lisbon every day
Further south, Setúbal offers genuinely lower prices and a different pace of life. The city has a strong local identity, quality gastronomy and easy access to the Serra da Arrábida , one of Portugal's most beautiful natural areas.
The trade-off is distance. Setúbal is around 45 minutes from Lisbon by car, which makes it more of a lifestyle choice than a base for indulgence.
For remote workers, retirees or buyers who value nature and space over everyday urban access, it's one of the best options available. For those who visit Lisbon regularly, the equation doesn't quite add up.
Barreiro the most undervalued alternative for 2026
The most undervalued alternative on this list and, in our view, the most interesting for 2026.
It is located on the south bank of the Tagus, directly opposite Lisbon. The ferry to Cais do Sodré takes 20 minutes and runs frequently throughout the day.
Despite this proximity, prices remain 40 to 50% below those of comparable neighbourhoods in Lisbon, a difference that has persisted even while the rest of the metropolitan area has recovered.
The Barreiro of 2026 is not the Barreiro of ten years ago
The city is going through the biggest urban transformation in its recent history. Porta 36 and Voraz (9.4 on TheFork) have become recognised gastronomic references beyond the south bank.
OUT.FEST, an international festival in its 22nd year, attracts audiences from all over Europe.
And the last two years have seen the arrival of investments that rarely happen simultaneously in a single city: the first hotel (€20M), a CUF hospital (€55M, 300 jobs), the redevelopment of the historic centre (€27M) and a new riverside area in Torralta.
None of these investments take place in a city with no future.
Because Barreiro still has room for improvement
The reason Barreiro still offers value is simple: the market hasn't yet taken on board what's happening.
Almada and Cascais are well-known options, and the demand is reflected in the prices. Barreiro is changing, but its reputation has not yet caught up with reality. This creates a window for those entering now, before the market updates its expectations.
Between 2020 and 2025, the average price in Barreiro rose from 697€/m² to 2,593€/m², an increase of 272% according to INE. And even so, prices remain 40 to 50% below Lisbon. The margin exists because the starting point was too low, not because growth has stopped.
Direct comparison: what's the best option in 2026?
| Almada | Setúbal | Barreiro | |
| Connection to Lisbon | 15-25min | 45min | 20min (ferry) |
| Price compared to Lisbon | 20-30% below | 40-50% below | 40-50% below |
| Potential for valorisation | Low-Medium | Medium | High |
| Urban Amenities | High | Averages | Growing fast |
| Ideal Profile | Consolidated Buyers | Remote workers | Who enters early |
For buyers who need to be close to Lisbon, Barreiro presents the most convincing combination in 2026: proximity to the ferry, a significant price advantage, and a transformation story that is still in its early chapters.
Nooba: living in Barreiro with a different quality
Nooba is a residential development on Barreiro's waterfront, designed for those who want to live well with river views, swimming pools, a rooftop and a running track, without paying Lisbon prices.
The project was designed by the architect responsible for the Portugal Pavilion at Expo Dubai and is currently in the third phase of commercialisation.
If you're considering Barreiro as your next home or investment, Nooba is worth a visit.
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View flatsFAQ's
Is Barreiro a good place to live in 2026?
Yes. Barreiro is one of the cities in the Lisbon Metropolitan Area with the biggest transformation underway. With ferry access to Lisbon in 20 minutes, prices well below the capital and significant public and private investment underway, it is becoming increasingly attractive to professionals, families and international buyers.
Where to live near Lisbon with a good quality of life?
Barreiro today combines what few cities in the region can: a 20-minute ferry to the centre of Lisbon, river beaches, a forest park within the city, an active cultural scene and a growing health infrastructure, all at prices that would be impossible in Lisbon.
What's the best alternative to Lisbon for buying a house?
It depends on the priorities. If proximity and development potential are decisive, Barreiro presents the strongest argument in 2026. If distance matters less, Setúbal offers more space and lower prices. Almada maintains good connectivity but has seen significant appreciation in recent years.
