Just returned from a fantastic week in enchanting Alfama. Francisco's apartment exceeded all expectations – clean, comfortable and the view from the sun terrace is something else! Francisco's directions were spot on, even so, Isabel was kind enough to direct our taxi driver over the phone.
Stay here if you want an authentic Lisbon experience. It's just around the corner from the impressive São Vicente de Fora. The tram 28 runs by right outside but you can easily walk into Barrio Alto and Praça do Comércio, then along the waterfront.
A couple of great little discoveries we chanced upon – the Restaurante Alpendre just down the hill from the viewing point near 'Largo Das Portas do Sol' tram stop. It doesn't look like much from the outside but this is a lively favourite for both locals and tourists. We had the signature seafood stew which was amazing - the desserts were great too. The waiters were game for a laugh and treated us to a complimentary post-meal shot of ginjinha.
We also walked uphill to the quieter Graca quarter. Hang a left at the ESCOLA A VOZ DO OPERÁRIO and you'll reach one of the city's lesser-known miradouros Travessa São Vicente. I'm not sure whether this was only a temporary thing for the World Cup but it was a great place to watch the football (a big screen had been set up) and admire the sunset over the Tejo. There was a bar selling beers and sangria for just €1 and the most amazing chouriço.
We can't recommend this place enough!