Why Lisbon Appears Rundown and What’s Being Done to Revive It

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I moved to Lisbon in January 2015. I have to admit, Lisbon was or at least felt like it was, very rundown. Lot’s of buildings in and around the centre badly in need of some TLC. Since then, a lot of those same building have been given a new life.

I get it though. A lot of places in Lisbon still feel really rundown. So many times tourists have asked me ” but does someone really live there?”

Yes, that’s is someone’s hose, I reply.

Rundown Lisbon

Lisbon is a city bursting with rich history, stunning views, and vibrant culture. Yet, like many older European cities, some areas may appear rundown or neglected at first glance. This can be surprising to visitors expecting postcard-perfect streets. However, there are clear historical, economic, and social reasons behind this, and the good news is that the city is actively undergoing transformation. In this post, we’ll explore why some parts of Lisbon appear neglected, what is being done to revitalize them, and why these “rundown” areas are part of the city’s unique charm.

Why Lisbon Is So Rundown And What Is Being Done To Improve It

Why Does Lisbon Appear Rundown?

1. Historical Challenges and Economic Inequality

Lisbon’s appearance has been shaped by centuries of history, including devastating earthquakes, political upheavals, and periods of economic instability. These events caused uneven development, leaving some neighborhoods underfunded and neglected. Many older buildings show signs of wear simply because decades passed without adequate investment in repairs.

2. Outdated Infrastructure

Parts of Lisbon still rely on old infrastructure. Aging roads, historic buildings, and older public transportation systems give certain areas a run-down feel, even though these streets are rich in character. Some neighborhoods haven’t seen modern upgrades, which can make them seem less inviting at first sight.

3. Neglected Heritage

The city is home to countless historic buildings, monuments, and landmarks, many of which are centuries old. Limited funding and prioritization mean that some sites fall into disrepair. This is especially true for areas outside the main tourist districts. While efforts are underway to preserve these gems, many are still waiting for restoration.

4. Urban Decay and Gentrification

Some Lisbon neighborhoods have experienced urban decay, while others are undergoing gentrification. This creates stark contrasts: older, neglected streets sit alongside trendy cafés and boutique hotels. While gentrification brings investment and improved amenities, it can also displace long-time residents, changing the local character of these districts.

What Is Being Done to Revive Lisbon?

Despite these challenges, Lisbon is actively revitalizing itself through infrastructure projects, urban renewal, and cultural preservation. Here are some of the key efforts transforming the city today:

1. The Baixa Rehabilitation Project

One of the most notable projects is the Baixa district rehabilitation, where downtown streets are being transformed with new public spaces, updated roads, and better services. This initiative aims to create a more vibrant, livable, and sustainable urban environment. Visitors can already see improvements in architecture, plazas, and pedestrian areas.

👉 Pro Tip: Stay in the heart of Baixa to experience this transformation firsthand. Check rates and book through Agoda for convenient, centrally located hotels.

2. Focus on Sustainable Urban Development

Many projects in Lisbon now prioritize sustainability. This includes the creation of green spaces, energy-efficient buildings, and eco-friendly transport initiatives. By focusing on environmentally conscious urban planning, Lisbon not only improves aesthetics but also creates a healthier and more enjoyable experience for residents and visitors alike.

3. Preserving Lisbon’s Cultural Heritage

Historic preservation is central to the city’s revival. Initiatives are underway to restore iconic landmarks such as the Alfama district and ancient churches. These projects ensure cultural heritage remains intact while blending harmoniously with modern developments.

👉 Bonus Experience: Explore Lisbon’s restored historic sites with a guided tour from Viator to get insider knowledge and skip the lines.

4. Investment in Infrastructure and Public Services

The city is improving public transport, roads, bike lanes, and pedestrian areas. The Lisbon Metro has been upgraded, new tram routes are being added, and pedestrian zones are expanding. These enhancements make the city more accessible and enjoyable for tourists, while also boosting the local economy.

👉 Insider Tip: Book your transportation pass or Lisbon experience tour on GetYourGuide to maximize your visit.

Why Lisbon Is So Rundown And What Is Being Done To Improve It

The Charm of Lisbon’s “Rundown” Areas

It’s easy to judge a city by its streets, but the so-called rundown neighborhoods in Lisbon are full of charm. Behind crumbling facades, you’ll find narrow streets, colorful azulejo tiles, hidden cafes, and breathtaking viewpoints. Places like Mouraria and Alfama showcase the city’s soul, where tradition meets modern life.

Local Experiences in Revitalized Areas

Lisbon’s transformation offers more than sightseeing—it gives visitors unique hands-on experiences in neighborhoods that blend old-world charm with modern vibrancy. Here are a few to try:

1. Fado Nights in Alfama

Experience the soul of Lisbon with a Fado music night in Alfama. These intimate performances capture the city’s history and emotion. If you are looking for an amazing cultural experience, go to a fado restaurant.

Now, there a lot of “scammy” fado restraunts in town. Avoid them and go to a proper one.

👉 Check out our post on the best fado restaurants.

👉 Book a Fado evening with Viator to reserve a seat in advance.

2. Tile-Painting Workshops

Learn the art of azulejo painting, Lisbon’s iconic ceramic tiles. Workshops often include historical context and take-home souvenirs.

I love these tile-painting workshops. Imagine taking home with you a tile that you painted in Lisbon.

👉 Secure a spot through GetYourGuide for an immersive experience.

3. Guided Tram 28 Tours

Hop on the famous Tram 28 to explore Lisbon’s steep streets, historic neighborhoods, and hidden viewpoints.

👉 Skip the wait and book a guided tour via Viator for insider tips and photography stops.

4. Alfama Walking Tours

Discover Alfama’s winding streets, street art, and local markets with a guided walking tour.

Alfama is Lisbon’s oldest neighbourhood. No trip to Lisbon is complete without a trip to Alfama – trust me!

👉 Learn the stories behind each corner and enjoy hidden cafés along the way. Reserve your tour through GetYourGuide.

5. Rooftop Views and Sunset Experiences

Some revitalized areas offer rooftop bars and viewpoints with panoramic views of the city and Tagus River. In fact, rooftop bars and boat parties and river cruises are all the rage in Lisbon. Definitely woth adding to your itinerary.

👉 Pre-book a sunset tour or rooftop experience on Viator to enjoy the best photo opportunities.

These experiences not only support local businesses but also enhance your visit, offering authentic memories beyond the usual tourist spots.

What It’s Really Like to Live in Lisbon: 17 Eye-Opening Truths

Conclusion: A City in Transformation

Lisbon is constantly evolving. While some areas may look rundown at first glance, they are teeming with history, character, and potential. With ongoing revitalization efforts, sustainable urban projects, and careful preservation of cultural heritage, Lisbon is poised to shine even brighter in the years to come.

Next time you visit, explore both well-preserved neighborhoods and lesser-known, rugged streets. Lisbon’s charm lies not just in its beauty, but in its ability to embrace change while honoring its roots.

👉 Pro Tip: Plan your visit using Agoda for accommodations, and combine your stay with curated experiences via Viator or GetYourGuide to see both classic sights and hidden gems.

About the author

I’m Duncan, a Lisbon-based guide and writer who’s lived here for 11 years and taken hundreds of visitors around the city. I created Lisbon Listicles to share everything you need to know about Lisbon in clear, practical lists — from iconic sights to hidden gems — so you can plan your trip easily and make the most of your time here.

All recommendations are based on personal experience and the questions I hear most often from visitors.

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