The loft Pedro & José rent out is a wunderfull gem right in the middle of Alfama. The view from the apartment is amazing and there are a lot of Fado restaurants just around the corner.
The apartment is very cozy. We loved it a lot and would recommend it to anyone who doesn't have problems walking stairs (it's on the fourth floor).
Be aware that at midnight after all bars and restaurants close carbage is collected, which can be noisy for a little while.