Carefully laid out, welcoming, and beautifully furnished with natural materials, this charming ground-floor apartment made us feel right at home the minute we walked up to the facade of this typical Lisbon home. However, the design really shines here, and a lot of thought has gone into making the most of the small square footage. The original Pombalino partition wall in the kitchen adds character to the modern interior, creating a tasteful separation that doesn't make the room feel small – meanwhile, the bedroom packs in plenty of built-in storage. The charming outdoor terrace is perfect for an alfresco breakfast or late-night drink. However, when you want to venture beyond its four walls, Graça offers many local spots to explore. Our favourites include celebrating the sunset with a glass at Botequim before heading to dinner at O Pitéu da Graça. Don't let the unassuming exterior fool you – this neighbourhood standout attracts Lisbon's top chefs with its simple regional fare prepared to tried and tested recipes. It's first-come, first-served so arrive early, order a jug of house red and tuck in.

Home truths:
* Although the entrance is at street level, there is one step when walking into the home
* Graça is a residential neighbourhood – if you're after that city-centre buzz, you might want to check out a neighbourhood like Chiado