What is the best area to stay in Budapest?

Budapest has a population of approximately 1.7 million people, making it the largest city in Hungary. The city attracts millions of tourists each year, drawn by its historical sites, cultural events, and thermal baths. Here is our guide to picking the best area to stay in Budapest for your next trip.

An introduction to Budapest's districts

Budapest is divided into 23 distinct districts. The city is uniquely split by the Danube River into two main parts: Buda on the west bank and Pest on the east bank. This geographical division gives Budapest its distinctive character and offers visitors a variety of experiences.

Among these districts, three stand out as particularly important for tourists. District I, also known as the Castle District, is situated in Buda and is home to the iconic Buda Castle, Matthias Church, and Fisherman's Bastion. This area is rich in history and offers breathtaking views of the city.

District V, Belváros-Lipótváros, is located in Pest and serves as the heart of Budapest. This district boasts the stunning Parliament Building, St. Stephen's Basilica, and the bustling Váci Street, making it a hub for shopping, dining, and cultural activities.

District VII, Erzsébetváros, also in Pest, is famous for its vibrant nightlife and the historic Jewish Quarter. It is known for the Great Synagogue, the largest in Europe, and the trendy ruin pubs that attract locals and visitors alike.

However, there are plenty more districts that are worth visiting (more on that below).

Best for first-time visitors: Castle District 

• My recommendation: Monastery Boutique Hotel Budapest
• Location: Close to Close to Matthias Church and Fisherman's Bastion
• Pros: Stunning panoramic views of Budapest with a central location in the historic district
• Cons: Higher price point than some other areas, and can be crowded with tourists during peak seasons

The Castle District, perched atop Castle Hill, is the crown jewel of Budapest and a UNESCO World Heritage site. This historic neighborhood is a maze of cobblestone streets lined with baroque houses and medieval ruins. At its heart lies the grand Buda Castle, a palatial complex that now houses the Hungarian National Gallery and the Budapest History Museum. 

Nearby, the striking Matthias Church with its colorful tiled roof stands as a symbol of Hungarian Gothic architecture. 

Just steps away, Fisherman's Bastion offers fairy-tale-like turrets and arcades with breathtaking views over the Danube and the Pest side. The area is also home to quaint cafes, traditional Hungarian restaurants, and boutique shops.

While here, don't miss the opportunity to stop at Café Ruszwurm, one of Budapest's oldest confectioneries, famous for its traditional Hungarian cakes and pastries. Pest-Buda Bistro is part of the oldest hotel in the city and is famous for its goulash and chicken paprikash.

Much of the district is pedestrianised, making it pleasant for strolling and sightseeing.

Why I love it: The Castle District is a living museum that transports you back in time while offering modern comforts. 

Best hotels in the Castle District

• Best boutique stay: Monastery Boutique Hotel Budapest. This charming hotel offers a unique blend of historical ambiance and modern comfort. Housed in a renovated 17th-century monastery, it features elegant rooms, a tranquil courtyard, and easy access to major attractions.
• Best for views: Boutique Hotel Victoria Budapest. Perched on the Buda side, this hotel boasts panoramic views of the Danube and Parliament. Guests can enjoy well-appointed rooms, a riverside terrace, and personalized service in an intimate setting.
• Best for luxury: Áurea Ana Palace by Eurostars Hotel Company. This opulent hotel occupies a restored 19th-century palace. It offers lavish accommodations, a gourmet restaurant, and a spa. The central location provides easy access to Castle District landmarks and beyond.

Browse hundreds of accommodations in the Castle District at any budget.

Best area to stay in Budapest for families: Hegyvidék

• My recommendation: Bagatelle Gardenhouse
• Location: Southwestern part of Buda, in the hilly area
• Pros: Quiet and green residential area that’s close to nature and outdoor activities. Safe neighborhood for families with good public transport connections to the city center
• Cons: Further from major tourist attractions and with fewer dining and entertainment options compared to central districts

Hegyvidék offers a tranquil escape from the bustling city center of Budapest. Its tree-lined streets wind through hilly terrain, make for a great base for a family trip. Elegant villas and modern homes dot the area, and the air feels fresher here, with numerous parks and green spaces. 

Residents and visitors alike enjoy the peaceful atmosphere, often taking leisurely walks or hikes in the nearby Buda Hills. Despite its quiet charm, Hegyvidék maintains convenient connections to the heart of Budapest.

The area's safety and family-friendly attractions make it an ideal base for those traveling with children. Head over to Normafa Park for a perfect picnic spot, hiking trails, and even sledding during winter. 

The Budapest Chairlift offers a relaxing and scenic ride that everyone will love. Kids will have a blast at the many playgrounds and green spaces scattered throughout the area. Plus, the Budapest Zoo and Botanical Garden is just a short trip away, which great for a family day out.

Why I love it: The district offers a glimpse into the everyday life of Budapest residents, away from the tourist-heavy areas, allowing visitors to experience a more authentic side of the city.

Best hotels in Hegyvidék

• Best boutique stay: Bagatelle Gardenhouse. This charming guesthouse offers a peaceful retreat in the green Hegyvidék district. With its cozy rooms, beautiful garden, and homely atmosphere, it's perfect for those seeking a quiet stay away from the city center.
• Best for business travelers: Novotel Budapest City. Located near the MOM Park shopping center, this modern hotel caters well to business guests. It offers spacious rooms, conference facilities, a fitness center, and easy access to public transportation.
• Best for budget-conscious travelers: Walzer Hotel. This family-run hotel provides comfortable accommodations at reasonable prices. Its location in the 12th district offers a local experience, while still being within reach of Budapest's main attractions via public transit.

Browse hundreds of accommodations in Hegyvidék at any budget.

Best for nightlife: The Jewish Quarter or Erzsébetváros

• My recommendation: Royal Park Boutique Hotel
• Location: Close to Szimpla Kert and Gozsdu Udvar
• Pros: Heart of Budapest's vibrant nightlife scene, with an abundance of bars, clubs, and ruin pubs and diverse dining options
• Cons: Can be noisy, especially on weekends and can be crowded during peak tourist season

The Jewish Quarter, located in District VII (Erzsébetváros), is the center of Budapest's pulsating nightlife. This historic neighborhood has transformed from a center of Jewish culture into the city's most dynamic entertainment hub. 

At its heart lies the iconic Dohány Street Synagogue, the largest synagogue in Europe, a testament to the area's rich heritage. The quarter is renowned for its ruin bars, a uniquely Budapest phenomenon where abandoned buildings have been converted into eclectic drinking spots. 

Szimpla Kert, the original ruin pub, is a must-visit, offering a maze-like experience of quirky decor and multiple bars. The area is dotted with trendy cocktail bars, underground clubs, and live music venues catering to all tastes. 

Food enthusiasts will appreciate the diverse culinary scene, from traditional Jewish eateries to modern fusion restaurants.  Mazel Tov is a trendy Middle Eastern restaurant in a ruin bar setting worth trying, and Kőleves offers a diverse menu in a former kosher meat processing facility.

During the day, the quarter buzzes with vintage shops, design stores, and artisanal cafes. 

Why I love it: Every night promises adventure in the Jewish Quarter. It's a place where the energy is infectious, drawing you into its web of narrow streets and hidden courtyards. 

Best hotels in Erzsébetváros

• Best boutique stay: Royal Park Boutique Hotel. This stylish hotel offers modern rooms in a renovated 19th-century building. Its central location provides easy access to the vibrant nightlife and cultural attractions of the Jewish Quarter.
• Best for luxury: Continental Hotel Budapest. Housed in a beautifully restored Art Nouveau building, this hotel features elegant rooms, a rooftop pool, and a spa. It combines historical charm with modern amenities in the heart of the Jewish Quarter.
• Best for budget travelers: Soho Boutique Hotel. This affordable yet chic hotel offers comfortable rooms and a trendy atmosphere. Its location is perfect for exploring the area's ruin bars, restaurants, and historical sites without breaking the bank.

Browse hundreds of accommodations in Erzsébetváros at any budget.

Best area to stay in Budapest for boutique stays: Újlipótváros

• My recommendation: Szent István Apartments
• Location: Close to Margaret Island and Szent István Park
• Pros: Quiet, residential atmosphere close to the Danube and green spaces. Less touristy, more authentic Budapest experience with excellent local cafes and restaurants.
• Cons: Fewer major tourist attractions within walking distance. Limited nightlife options compared to central districts

Újlipótváros, part of the 13th district, is a charming residential area that offers a glimpse into the local Budapest lifestyle.

At the center you will find Szent István Park, a beautiful green space perfect for picnics or morning jogs. The area is bordered by the Danube, with the picturesque Margaret Island just a short walk across the bridge.

Pozsonyi Street, the main thoroughfare, is lined with cozy cafes, boutique shops, and excellent bookstores, including the famous Líra Könyv. The area's boutique shops and intimate restaurants provide a more personal, curated experience than you'd find in more touristy areas.  

Stop by Ébresztő for brunch and coffee, then stop by Zazi to shop for unique, locally-designed clothing and accessories.

Újlipótváros is where you will find the Vígszínház (Comedy Theatre), one of Budapest's most beautiful theaters. The area is also home to several small art galleries and the unique Shoes on the Danube Bank memorial. 

Why I love it: The best part about Újlipótváros is it’s authenticity - here, you can experience Budapest as the locals do. 

Best hotels in Újlipótváros

• Best boutique stay: Szent István Apartments. These stylish apartments offer a home-away-from-home experience in a central location. With modern amenities, fully equipped kitchens, and spacious living areas.
• Best for wellness: Danubius Hotel Helia. This hotel is renowned for its extensive spa facilities, including thermal baths, a swimming pool, and various wellness treatments. Its location near Margaret Island provides a relaxing environment.
• Best for design: Roombach Hotel Budapest Center. This modern boutique hotel is located on the border of Újlipótváros and Erzsébetváros. It offers stylish rooms with contemporary design and is known for its excellent location and friendly service.

Browse hundreds of accommodations in Újlipótváros at any budget.

Best for shopping and dining: Belváros-Lipótváros

• My recommendation:  Gerlóczy Boutique Hotel
• Location: Close to Vörösmarty Square and Fashion Street
• Pros: Central location with easy access to major attractions with high-end shopping and diverse dining options. Close to the Danube River and has stunning views.
• Cons: Can be crowded, especially during peak tourist season, higher prices compared to other districts.

Belváros-Lipótváros, encompassing the 5th District, is a paradise for shopping enthusiasts and food lovers. 

The district buzzes with activity. Well-dressed locals hurry to business meetings or leisurely window shop along the tree-lined avenues. Tourists meander through the streets, cameras in hand, admiring the grand architecture and ducking into boutiques or cafes. 

This elegant neighborhood is home to Váci Street, the city's premier shopping boulevard, lined with international brands and local boutiques. The district is also known for its charming specialty shops, like the Herend Porcelain shop offering exquisite Hungarian porcelain, or Folkart Centrum for traditional embroidery and handicrafts.

The area boasts architectural marvels like St. Stephen's Basilica, a neo-Renaissance masterpiece offering panoramic views from its dome. The iconic Chain Bridge, connecting Buda and Pest, is easily accessible from here.

Foodies won't want to miss the Great Market Hall, a vast neo-Gothic building where locals and tourists alike shop for fresh produce and traditional Hungarian specialties. The district is also known for its high-end restaurants, including several Michelin-starred establishments. 

Why I love it: The area's grandeur is palpable in its stunning architecture, from ornate 19th-century buildings to sleek modern designs.

Best hotels in Belváros-Lipótváros

• Best boutique stay: Gerlóczy Boutique Hotel.This charming hotel occupies a restored 19th-century building, offering cozy rooms with vintage decor. Its café-restaurant is a local favorite, and the central location is ideal for sightseeing.
• Best for long stays: The Loft Budapest. These spacious, apartment-style accommodations cater to extended visits. With fully-equipped kitchens and modern amenities, it's perfect for those wanting a home-away-from-home experience in the city center.
• Best for business travelers: Nador Boutique. Located near government offices and business districts, this sleek hotel offers comfortable rooms and meeting facilities. Its proximity to major attractions also makes it suitable for mixing business with pleasure.

Browse hundreds of accommodations in Belváros-Lipótváros at any budget.

Best for trendy cafes and art galleries: Józsefváros

• My recommendation: Brody House
• Location: Close to the Hungarian National Museum and Mikszáth Kálmán Square
• Pros: Up-and-coming area with a vibrant arts scene with umerous trendy cafes and unique dining options. Less touristy and more affordable than central districts.
• Cons: Fewer major tourist attractions compared to central areas

Józsefváros, also known as the 8th District, is Budapest's rapidly evolving bohemian quarter. Once overlooked, this area has transformed into a hub for artists, and young professionals. 

Here, you can witness a neighborhood in the midst of reinventing itself, where every corner tells a story of past and future colliding. The contrast between grand old buildings and street art, traditional markets and hip coffee shops, is what makes this area so interesting.

It's a place where you can stumble upon a pop-up gallery in a converted apartment, enjoy a perfectly crafted flat white in a cafe that doubles as a bicycle repair shop, or engage in passionate discussions about art and politics with locals in a cozy wine bar.

Központ is a popular cafe by day and lively bar by night, often hosting cultural events and exhibitions. Lumen Café is another great place to stop: it is a cafe, gallery, and event space rolled into one, often featuring photography exhibitions. A community-run cooperative bar and cultural center, Gólya  hosts concerts and film screenings.

Why I love it:  Józsefváros offers a glimpse into the real, living Budapest, away from the tourist crowds.

Best hotels in Józsefváros

• Best boutique stay: Brody House. This unique hotel occupies a restored neo-classical building, offering individually designed rooms filled with local art.
• Best for design lovers: BoHo Budapest Hotel. With its sleek, modern interiors and stylish decor, this hotel appeals to those with an eye for contemporary design. It offers comfortable rooms, a trendy bar, and easy access to the city's cultural attractions.
• Best for families: Mercure Budapest Korona. This well-located hotel provides spacious family rooms and suites. Its indoor pool, central location near public transport, and proximity to attractions like the National Museum make it an excellent choice for family stays.

Browse hundreds of accommodations in Józsefváros at any budget.

Best for quiet residential and local culture: Óbuda

• My recommendation: Bed Breakfast Hotel Budapest
• Location: Close to Óbuda Main Square and the Danube
• Pros: Peaceful residential atmosphere, yet rich in Roman ruins and local history. Beautiful parks and green spaces and less crowded than central districts.
• Cons: Further from city center attractions and limited nightlife options. Fewer dining choices compared to more central areas.

Óbuda, which means "Old Buda," is Budapest's 3rd district and one of the city's oldest areas. This charming neighborhood gives you a peek into local life, away from the usual tourist spots.

At Óbuda Main Square, you'll find the iconic Statue of the Girl with the Goat, surrounded by beautiful Baroque buildings.  The area is rich in history, with lots of Roman ruins. The Aquincum Museum and Archaeological Park showcase what remains of the ancient Roman city.

If you’re into art, you’ll love the Vasarely Museum and Kassák Museum, both dedicated to famous Hungarian artists. For a peaceful walk or bike ride, head to Római Part along the Danube.

Óbuda Island, known for hosting the famous Sziget Festival, offers plenty of green space for relaxation. The district also has thermal baths like Csillaghegyi Árpád Forrásfürdő, where you can enjoy a more local bathing experience.

Why I love it: Óbuda is Budapest's hidden treasure — a more relaxed, authentic Budapest experience.

Best hotels in Óbuda

• Best for solo travelers: Bed Breakfast Hotel Budapest. This cozy, budget-friendly hotel offers comfortable rooms and a welcoming atmosphere. Its central location and communal spaces make it easy for solo travelers to meet others and explore the city's attractions.
• Best for relaxation: Holiday Beach Budapest Wellness Hotel. Located on the banks of the Danube, this hotel offers a peaceful retreat with its private beach and wellness facilities.
• Best for history buffs: Verdi Budapest Aquincum. Situated near the ancient Roman ruins of Aquincum, this hotel combines modern comfort with historical surroundings. It has easy access to archaeological sites and museums.

Browse hundreds of accommodations in Óbuda at any budget.

Practical tips for choosing the right neighborhood

Start by considering your interests and priorities — whether that be nightlife, cultural and historical sights, or budget. 

Timing your visit

Summer (June to August) in Budapest can be quite hot and humid, with temperatures often reaching 30°C (86°F) or higher. This is peak tourist season, so expect larger crowds at popular attractions and higher prices for accommodations. 

Winter (December to February) sees cold temperatures, often hovering around 0°C (32°F) or below. Snow is common, adding a picturesque charm to the city. 

Danube cruises

Consider a river cruise for spectacular views of the city, especially beautiful at night when buildings are illuminated. Options range from basic sightseeing tours (1-2 hours) to dinner cruises and longer party boats. 

Some include a welcome drink, while others offer full meals or wine tastings. There are also hop-on-hop-off boat services for more flexibility in exploring.

Safety

Budapest is generally considered a safe city for travelers, with low rates of violent crime. However, as with any major city, visitors should remain vigilant against petty theft and pickpocketing, especially in crowded tourist areas and on public transportation.

How to get around Budapest easily from each neighborhood

The BKK app is the official transport app for route planning and tickets and is handy. You can also think about purchasing a Budapest Card which offers free public transport and entry to attractions.

• Metro: Four lines covering major areas, including the historic M1 (yellow line)
• Trams: Extensive network, with scenic route 2 along the Danube
• Buses: Comprehensive system reaching areas not served by rail
• Trolleybuses: Electric buses operating in Pest
• Suburban Railway (HÉV): Connects city center to outer districts and suburbs
• Walking: Many central areas are pedestrian-friendly