But there was a silver lining. The dive in property prices and rents drew artists and young entrepreneurs from around Europe. And  the hard times, Gomes says, forced locals to become resourceful, generating a kind of creative renaissance. “It was a really, really rough period, but for me it was amazing because we became conscious that there was no one to help us, no one was going to look after us, no one was going to give us a job, so what we really needed to do was create. In many ways, this was the best time because we started to do what we really wanted.”

Property prices are now beginning to soar as the glam crowd descends on the city. Madonna bought a seven-million-euro home here in September last year, and the number of foreign tourists visiting Portugal soared 13 per cent—the sixth straight record year for tourist arrivals. Tourism has been instrumental in bolstering the fragile economy. “Sometimes we talk about the gentrification and touristification of Lisbon, and without a doubt there are negative aspects to this, but I would say tourism has brought a lot of good things because we have a city that is being renovated and renewed,” says Gomes. “My grandfather is 90 years old and when I take him out now, he says he’s never seen it as pretty as it is today.”

"...but I would say tourism has brought a lot of good things because we have a city that is being renovated and renewed,” says Gomes

Headlining Lisbon’s creative renaissance is the Museum of Art, Architecture, and Technology (MAAT). The sweeping, organic structure was devised to revitalise the historic Belém riverfront and serve as a platform of encounter between the local and international art scenes. Director Pedro Gadanho, previously curator at New York’s Museum of Modern Art, says its impact has been extraordinary. “Our first year was beyond my best expectations. We had half a million visitors, which is quite amazing when you consider that the city itself is 700,000 people. I think it’s part of this excitement that’s happening with many foreigners discovering or rediscovering Lisbon.

Creativity is firing at a grassroots level too. LX Factory in Alcântara is a hub of hipster eateries, book shops, fashion boutiques, theatre, and music. This former industrial complex is the place for start-ups, freelance photographers, designers, and artists. Gomes will often go there to eat at Cantina, a refurbished 1800s workers canteen, which serves one of the city’s best incarnations of octopus à lagareiro—octopus that’s boiled and then baked in olive oil with potatoes in a traditional wood-fired oven.

Just a few years ago Lisbon’s culinary landscape was dominated by rustic, family-run restaurants serving farmers’ portions of bacalhau, grilled sardines and boiled vegetables. No longer. “Cooking in Lisbon right now is hot, it’s really novel,” says chef Henrique Sá Pessoa, who trained in the US before returning to Lisbon in 2002. “The cooking revolution in terms of haute cuisine is very recent. It’s really only happened in the last five years.” At Alma, his Michelin-starred restaurant in the fashionable Chiado district, he serves contemporary Portuguese food that incorporates flavours and techniques he has picked up from travelling the world. His signature dish is suckling pork belly, cooked for 24 hours at 64 degrees Centigrade, then roasted until the skin crackles, and served with sweet potato puree, bok choy, and orange sauce.

“One of the things everyone needs to know when they come to Lisbon is that our seafood is amazing,” says Sá Pessoa—and one of the best places to find it is the Time Out market in trendy Cais do Sodré. Expect to fight for a seat as it’s extremely popular, but the excellent wine and wide range of cuisine from the city’s best chefs make it well worth a visit.

Don’t leave Lisbon without taking in the gardens, library, and impressive collection of ancient and modern art at the Calouste Gulbenkian Museum, centuries of tile work at the National Azulejo Museum, and the splendour of the Palace of the Marquesses of Fronteira. But perhaps the most memorable aspect is walking the streets of the city centre. Set out early to avoid the heat and crowds. Visit the skeletal Carmo Convent, a medieval relic, on your way down to the majestic Praça do Comércio. Climb the Rua Augusta Arch for breathtaking views of the city, before snaking your way up the maze-like streets of Alfama to the Moorish battlements of São Jorge Castle. Have a coffee and do some shopping in the upscale Príncipe Real and head in the evening to the picturesque neighbourhood of Bica, known for its small bars and funicular, or neighbouring Bairro Alto for some Fado, traditional Portuguese singing.

For a serious night out, brace yourself for the renowned waterfront nightclub Lux Frágil, coowned by the actor John Malkovich. “I think Lisbon has one of the greatest night scenes in Europe,” says Sá Pessoa. “The nights can be long. Now that I’m in my forties, 3am is my limit, but the night can easily go until midday the next day.”

If you’re contemplating a trip to Lisbon, go now, because it hasn’t yet become a museum. “What happened to Barcelona in the ’90s is happening in Lisbon now. We must be careful that our city doesn’t lose its character and identity,” says Sá Pessoa. Gomes feels the same. “We’re already becoming a bit of a projection of ourselves. We’re beginning to see the commodification of culture.” He is trying to change the way visitors consume culture, encouraging genuine engagement with, and sensitivity towards, the local population. “I really believe we have that responsibility. We can’t just travel looking for trophies the way we have been doing in the past. I think we should really travel to become better people.”