Situated in the charming area of Graça, this luminous flat is a cosy retreat in one of Lisbon's most authentic neighbourhoods. The sun-kissed private terrace is our favourite spot. Begin the morning out there with a strong cup of coffee and pasteis de nata in the fresh air – your host can also arrange breakfast – and close the day with a glass of Vinho Verde come nightfall. You'll also have access to a communal garden, which is perfect for picnics in the late-afternoon sunshine. Inside, the sleek design is complemented by brilliant pops of red. Sprawl out on the sofa for a post-sightseeing catnap or gather around the table for a typical Portuguese dinner. Another thing we adore is the location. You're a bit further away from the hustle and bustle in the city centre, but with the famous 28 Tram a short walk away, you won't have to travel far to see the sights. Here, narrow streets are flanked by local restaurants, bakeries and open-air cafes, all serving up delectable regional dishes. Make sure to take in the panoramic views from the hilltop observation points – our favourite is Miradouro da Senhora do Monte, easily reached on foot. Or, explore in style and ask your host to arrange river cruises, helicopter tours and other experiences. Home truths: *The double bed is made up of two singles placed on a double-sized base *While the balcony is private, the rest of the garden is shared with other residents – the entrance is also communal *The wi-fi can be temperamental here *There are no curtains in the living area *The bedroom curtains here don't fully block out the streetlight *Given the home's central spot, expect to hear some noise throughout your stay *For longer stays, the kitchen lacks some basic cooking essentials – we'd recommend bringing your own *Parking in Lisbon can be tricky, so we recommend sticking to the easily accessible public transport where possible *The pipes in the home can be noisy