Where To Stay In Budapest: 5 Best Areas & Neighborhoods

Budapest is one of those cities where choosing the right neighborhood can change the whole trip. The Danube splits the city into Buda and Pest, but that is only the start of it. Each area has its own personality. Some are packed with grand buildings and famous sights. Others are full of ruin bars, cafés, local markets and late-night spots.

The city is also surprisingly easy to explore. Trams rumble along the river, the metro gets you across town quickly, and plenty of the best streets are made for walking. Budapest’s neighborhoods can feel completely different within a few blocks.

For first-time visitors, staying around the historic center is an easy choice. But there are good reasons to look beyond it. Buda is quieter and hillier. The Jewish Quarter is lively and full of nightlife. District XIII feels more local, while the area around City Park gives you more space to breathe.

Here’s our guide to the best areas to stay in Budapest, including what each neighborhood is like and who it suits best.

 

In this travel guide:

 

Castle District

Best area for: history, views, tourists

It is important to note that Budapest’s neighborhoods are broken down into conveniently numbered districts. This is possibly a holdover from the days of communism when Hungary was a part of the USSR.

The Castle District is also known as Várkerület or District 1. It is the ideal place to stay if it is your first time visiting Budapest.

Budapest is separated by the Danube River with the city laid out on both sides. The Castle District is located on the Buda side of the city. The area is what one would expect of an old Eastern European town. It has cobblestone streets, quaint coffee shops, and little stores selling goods.

A trip up to Buda Castle offers you amazing views across the Danube River to Pest. You can see the beautiful, ornate Parliament Building from the castle.

We love snapping photos at Fisherman’s Bastion. The fairytale towers look directly over the Parliament building across the river. Right next door sits Matthias Church with its colorful tiled roof. Buda Castle sits at the southern tip, packed with museums and massive courtyards.

When we need to recharge away from the dense crowds, we duck into Ruszwurm. It is a tiny, classic pastry shop operating since 1827. We grab an espresso and a warm slice of traditional Hungarian kremes cream cake. The vintage wooden interior makes you feel like you stepped back into the 19th century.

There are festivals held throughout the year around the castle. You can dive into Hungarian culture on a visit to the castle and enjoy a unique festival.

Best place to stay in the Castle District

Baltazar Boutique Hotel. Address: Budapest, Országház u. 31, 1014, Hungary.

 

Józsefváros

Best area for: nightlife, hipster

Józsefváros has experienced gentrification over the last decade and is now one of the top areas to stay in Budapest. Not long ago, Józsefváros was an area you wouldn’t want to go out in. That has changed as money has flowed into it and businesses have opened up.

Like many up-and-coming areas, Józsefváros is popular with students and young people looking for fun on nights out. You will find a number of great ruin bars in the neighborhood. A ruin bar pub crawl in Budapest is one way to see some of the most unique drinking establishments in the city.

What is a ruin bar? They are the most popular places to drink in Budapest. These bars are built in old, abandoned buildings, stores, and parking lots. The trend started in Budapest and is now sweeping Europe.

The area has a surprisingly long history. Until the 18th century, much of Józsefváros was made up of gardens, fields and farms outside Pest’s old city walls. The district got its name in 1777, after Joseph II and Saint Joseph. Later, the area became an important home for workers, craftsmen and artists. It also played a major role during the 1956 Hungarian Revolution. Józsefváros suffered some of the heaviest damage in Budapest.

We particularly like the Palace Quarter, or Palotanegyed. The streets around Bródy Sándor utca and Mikszáth Kálmán tér are lined with grand 19th-century buildings. The Metropolitan Ervin Szabó Library is another highlight. It occupies the former Wenckheim Palace, with some seriously impressive neo-Baroque interiors. The Hungarian National Museum is nearby too.

For food, we recommend Al Dente on Krúdy utca. It is a relaxed Italian restaurant in one of the nicest parts of the neighborhood. For something more local, there are plenty of small restaurants around Rákóczi tér.

Best place to stay in Józsefváros

Palazzo Zichy Hotel. Address: Budapest, Lőrinc pap tér 2, 1088, Hungary.

 

Belváros

Best area for: central stay, shopping, tourists

Belváros is the ancient core of the Pest side. Back in medieval times, this whole area was enclosed by heavy stone walls. You can still spot remnants of those old medieval fortifications tucked away in hidden courtyards.

Belváros acts as a high-energy mix of a bustling tourist hub and a sleek commercial district. You will not find many quiet residential blocks right in the center. The vibe is lively from morning until late at night.

Main attractions here are practically endless. We love walking down Váci utca, the famous pedestrian shopping street. The stunning Párisi Udvar passage is right around the corner with its incredible glass ceiling. You also get sweeping views of the Danube River, the Liberty Bridge, and the historic Elisabeth Bridge.

Perhaps the No. 1 historical landmark in Belváros to see is St. Stephen’s Basilica. Completed in 1905, the Neoclassical church is a magnificent building that can be toured for free. Outside its doors are a wealth of cafes, restaurants, bars, and nightclubs. You can sit and sip beers and wine at a cafe in the basilica’s shadow.

When we want a proper Hungarian meal without the tourist-trap feel, we pop into Belvárosi Disznótoros. It is a legendary, standing-room-only spot. They serve up incredible paprika-spiced sausages, crispy pork belly, and traditional side dishes right at the counter. It gives you a fast, authentic taste of local food right in the middle of the city.

Best place to stay in Belváros

Bohem Art Hotel. Address: Budapest, Molnár u. 35, 1056, Hungary.

 

Erzsébetváros

Best area for: history, culture, hipster

Erzsébetváros is Budapest’s District VII, and it has quite a split personality. During the day, we find busy cafés, small shops, courtyards and plenty of people heading to work or grabbing lunch.

At night, things change. The streets around Kazinczy utca and Gozsdu Udvar fill up with bars, restaurants and groups looking for a good night out. It is one of the city’s most touristy areas, but it is far from being just a tourist zone. Thousands of people live here too, and the mix can feel wonderfully chaotic.

This is also Budapest’s historic Jewish Quarter. The area became an important centre of Jewish life in the 19th century. The Dohány Street Synagogue is the big landmark. It opened in 1859 and is still the largest functioning synagogue in Europe. The neighborhood also played a tragic role during the Second World War, when the Pest Ghetto was established here.

Then there is the other side of Erzsébetváros. The ruin bars. Szimpla Kert on Kazinczy utca is the famous one. It helped turn abandoned buildings into some of Budapest’s most unusual drinking spots. The place opened in the early 2000s and became a blueprint for the ruin-bar scene.

For breakfast, we’d happily stop at Cirkusz Café on Dob utca. It is a good excuse to slow down before heading back into the wonderfully messy streets of District VII.

Best place to stay in Erzsébetváros

Corinthia Hotel. Address: Budapest, Erzsébet krt. 43-49, 1073, Hungary.

 

Terézváros

Best area for: shopping, nightlife

We spend a lot of time hanging out in Terézváros, also known as District VI in Budapest. The area started growing back in the late 1700s. Locals named it after Empress Maria Theresa in 1777. Today, it sits right in the sweet spot between a cultured residential neighborhood and a bustling tourist hub.

The grand spine of the whole district is Andrássy Avenue. It is lined with stunning Neo-Renaissance palaces and luxury shops. We love grabbing tickets for a show at the majestic Hungarian State Opera House. For a darker piece of history, the sobering House of Terror museum sits just further down the street.

Side streets like Nagymező utca bring a lively energy. People call it the “Broadway of Budapest” because of all the theaters. You can easily ride the yellow M1 metro line here. It is the second-oldest underground railway in the world.

If you need a break from sightseeing around the neighborhood, stop off at Városliget for a breath of fresh air. Városliget is one of Europe’s largest public parks. Visitors staying in Terézváros are not far from one of Budapest’s most attractive landmarks, the Széchenyi baths.

The amazing thermal baths has 18 pools allowing you to relax outdoors or indoors. One of the best things to do on a cold Budapest day is to relax outdoors in the thermal baths.

When hunger strikes, we duck into Két Szerecsen Bistro. They serve fantastic traditional Hungarian dishes alongside modern Mediterranean options. It is the perfect spot for a relaxed dinner or lunch. You get incredible architecture, great food, and total city charm all packed into one area.

Best place to stay in Terézváros

Callas House. Address: Budapest, Andrássy út 20, 1061, Hungary.

 

Where travel critics stay in Budapest

Want to know where travel critics from publishers like The New York Times, Frommer’s, Fodor’s and Lonely Planet stay in Budapest? Check out our overview of all recommended hotels, hostels and B&Bs in Budapest.

 

Budget

Pal’s Hostel and Apartments.

“Spread across several different buildings in central Budapest, this personable and characterful hub offers a range of accommodation from dorms and private rooms in self-catering apartments. All are well maintained and service is friendly and helpful.” — Telegraph.

Address: 1051 Budapest, Szent István tér 3., Hungary.

 

Mid-range

Guesthouse Brody House.

“Brody House is more than just a super-cool boutique hotel in the up-and-coming Palace District. It’s also a hub of creativity, focused on showcasing and supporting local artists, designers, writers, musicians and other creative types.” — CNN.

Address: Budapest, Bródy Sándor u. 10, 1088, Hungary.

 

Luxury

Four Seasons Hotel Gresham Palace.

“From the attentive staff to the Zsolnay tiles and Miksa Roth glass work, this is arguably Budapest’s finest hotel. It sits directly opposite the Chain Bridge on the Pest side, and more than a quarter of the 179 rooms overlook the Danube, making for a fairytale view of Buda Castle across the river.” — Frommer’s.

Address: Budapest, Széchenyi István tér 5, 1051, Hungary.

 

FAQ: Budapest hotel tips

Looking for the best budget, boutique, or luxury hotel in Budapest? Or maybe you’re a backpacker looking for an excellent hostel? Want to know which Budapest hotel serves a great breakfast? Here are the answers to all those and other questions about where to stay in Budapest.

 

 

Best time to visit Budapest

If you’re looking for warm weather and outdoor activities, the best time to visit Budapest is between May and September. During these months, the weather is pleasant, and the city comes alive with festivals and events. From music festivals to food fairs, there is no shortage of things to see and do in Budapest during the summer months.

However, if you’re looking for a more peaceful and less crowded experience, then the best time to visit Budapest is during the shoulder seasons of spring and fall. During these times, the crowds are thinner, and the weather is still pleasant enough to enjoy outdoor activities. Plus, with fewer tourists, you’ll have an easier time finding affordable accommodation and avoiding long lines at popular attractions.

If you’re looking for a winter wonderland experience, then the best time to visit Budapest is during the winter months. Budapest is known for its beautiful Christmas markets and festive atmosphere during the holiday season. Plus, the thermal baths and cozy cafes make for a perfect winter retreat.

 

Best things to do in Budapest

There are plenty of things to do in Budapest and surrounding areas, including day trips, attractions, museums, sightseeing tours and many other activities. Here’s our list of 3 things you should definitely do when you’re in Budapest:

 

Budapest Segway Tour

See the sights of Budapest as you cruise the city on a Segway. This tour offers a choice of durations for your guided trip around central Pest. Price: $43. More info.

 

Budapest: 1-Hour Sightseeing Cruise with Welcome Drink

See the sights of Budapest from the River Danube on a 1-hour sightseeing cruise, and enjoy a seasonal cocktail or soft drink along the way. Glide past landmark monuments such as Buda Castle and the Vigado Concert Hall. Stay connected with free Wi-Fi. Price: $11. More info.

 

Skip the Line: Széchenyi Spa Full Day Package

Skip the line at Budapest’s world-famous thermal spring spa, Széchenyi Bath. Choose from a weekday or weekend ticket to the elegant spa. The largest thermal spring bath complex in Europe, it comprises 3 outdoor and 15 indoor pools. Price: $30. More info.

 

More things to do in Budapest

 

Deciding where to stay in Budapest

As a closing note, let’s summarize this travel guide. We covered the best areas of Budapest so you can decide which part of town you want to stay in.

 

Top 5 areas to stay in Budapest

• Castle District
• Terézváros
• Erzsébetváros
• Belváros
• Józsefváros

 

As you have seen in this article, there are a lot of things to explore, and deciding where to stay in Budapest is important. Whether you stay in Castle District, Terézváros, Erzsébetváros, Belváros or Józsefváros, all those neighborhoods are in good locations.

The atmosphere of the area, whether you travel for leisure or business, whether you travel with your family or friends, and proximity to the attractions you prefer to visit should probably be the deciding factors. Whatever your preference is, you’ll have a great time in Budapest.

 

Budapest overview

🏨 Hotel prices:	Medium
🛏 Budget hotel:	$80
💑 Boutique hotel:	$130
⭐ 5-star hotel:	$250
🌎 Best area for first visit:	Castle District
👪 Best area for families:	Terézváros
💎 Best luxury hotel:	Four Seasons Gresham Palace
👫 Best boutique hotel:	Baltazar Boutique Hotel
💰 Best cheap hotel:	Dean’s College Hotel
🎒 Best hostel:	Pal’s Hostel & Apartments

 

More Budapest tips

Take a look at our other guides about the best places to stay in Budapest:

Hotels in Budapest

Hostels in Budapest

Boutique hotels in Budapest

Luxury hotels in Budapest

Cheap hotels in Budapest

Sustainable hotels in Budapest