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Where to stay in Budapest? The 5 best areas and places in Hungary’s capital 🇭🇺

There are 23 districts in Budapest, and you can spend a lot of time trying to find the best accommodation.

In this guide, I’ll go straight to the best neighborhoods and recommend some excellent hotels for your trip to Budapest.

Some districts in Budapest are not very tourist-friendly, and since I assume that you are traveling to Budapest to experience the best things the city has to offer, I have focused on the areas closest to the city center.

Where to stay in Budapest? These areas are the best 👇🏻

The best areas in Budapest

Are you in a hurry?

I can particularly recommend the 👉 Hotel Continental in District VII.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 3
Excellent hotel in Budapest

Find out more about the hotel here.👈

There is an excellent rooftop swimming pool with the best gym I have ever experienced, beautiful and spacious rooms, and the breakfast is delicious.

Let’s dive into the travel guide – where to stay in Budapest

1. Belváros – Lipótváros – for most tourists the best area to stay overnight ⭐️

First of all, let’s talk about District V, also known as Belváros – Lipótváros. If you are in Budapest for the first time, this is your first port of call.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 5

District V is located on the Pest side of the Danube, where the heart of Budapest beats. It is packed with history, splendor and an infectious enthusiasm that will sweep you away.

Here you will find the best hotels in the region. 👈

You will be spoiled for choice when it comes to sights and activities.

The impressive Hungarian parliament building is just a stone’s throw away, and the panoramic view from St. Stephen’s Basilica – one of the city’s giants – is not to be missed.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 7
St. Stephen’s Basicila

But District V is not just about sightseeing, it also has a vibrant food scene that will get your taste buds dancing.

Whether in a cozy bistro serving hearty Hungarian classics or in a trendy bar offering the best wines of the region – you are spoilt for choice.

Fancy a little shopping spree? On Váci Street (Váci Utca), the city’s main shopping street, you’ll find everything from big brands to unique Hungarian boutiques.

And the icing on the cake? District V is very conveniently located with streetcars, buses and the subway right on the doorstep.

But don’t worry, despite the central location, you will find plenty of quiet parks and places to relax.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 9

I like to relax down by the Danube and watch the boats go by.

In short, District V is a mixture of comfort, history and a lot of sights, which makes it the first choice for most visitors to Budapest.

Hotel Erzsébet City Center – the best place to stay on a budget

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 11

This is the perfect hotel if you want to stay close to everything – see the hotel here.👈

Let’s say you’re only on a short trip to Budapest. In that case, you won’t be able to see everything – but it will be easier if you stay here, because you’ll be close to places like:

  • One subway station
  • The large market hall
  • Gellert’s hot baths
  • The Chain Bridge
  • The Buda Castle

The hotel is a 3-star hotel and may offer a different level of luxury than many other places, but if you choose to stay here, it’s not because you planned to spend your time at the hotel.

If you want to live in the center and experience a lot of luxury, the area offers that too.

The next hotel is also located in the center, but has much more to offer – a good choice for those looking for a luxury hotel in the city center of Budapest.


The best accommodation for luxury in the city center – The Kempinski Hotel Corvinus

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 13

👉 The Kempinski Hotel is luxurious and elegant – you even have access to the swimming pool and spa area.

If you’re not careful, it’s easy to forget that there’s a fantastic city outside the hotel that needs to be experienced.


Affordable hotel within walking distance of ‘everything’

The 👉 H2 Hotel Budapest is an excellent choice for your stay if you are looking for a hotel with a perfect location at an affordable price.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 15

The hotel is within walking distance of the city’s most famous sights, including the Danube, the Hungarian Parliament building and Váci Street, which is known for its shopping and restaurants.

It is also just around the corner from the beautiful St. Stephen’s Basilica.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 17

When you choose the H2 Hotel Budapest, you are perfectly positioned to explore Budapest’s rich history and vibrant culture while enjoying the comfort of affordable and well-located accommodation.

By the way, I can highly recommend the QUÍ Restaurant & Bar 2, just a few minutes from the hotel – it’s an excellent Asian restaurant that I always visit in Budapest.


2. Burgviertel/Budvar – a historic center

Let’s talk about Várkerület, also known as District 1.

It is located on the Buda side of the river (on the left side if you look at a map) and is the oldest district of the city and one of the most historic areas of Budapest.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 19

With its cobbled streets, pastel-colored buildings and breathtaking views of the Danube, it’s easy to see why it’s a UNESCO World Heritage Site.

Here you will find the best hotels in District 1. 👈

What makes Várkerület so unique? It is home to the famous Budapest Castle – a royal palace that houses the National Gallery and the Budapest History Museum.

Nearby you will find the enchanting Fischerbastei with its fairytale towers and the Matthias Church, which is known for its colorful tiled roof and ornate interior.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 21

But Várkerület has more to offer than just its historical sites.

It is a lively neighborhood with charming cafés, exquisite restaurants and unique boutiques. The district is also known for its lively cultural scene with numerous galleries, theaters and summer festivals.

Despite its central location, Várkerület has retained a quiet and peaceful atmosphere, making it a perfect retreat after a day of sightseeing.

🇭🇺 is this the most underrated district in Budapest?

The location on a hill offers a breathtaking panoramic view over the river as far as Pest, which is particularly enchanting at sunset.

Whether you are a history buff, a foodie or enjoy strolling through picturesque streets, Várkerület is a fantastic starting point for your Budapest adventure.

Monastery Boutique – 4-star hotel at a great price

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 23

Hotels in Budapest are reasonably priced and it is easy to find cheap accommodation.

So I will recommend a nice hotel that is suitable for both families and solo travelers who want to treat themselves to a bit of luxury.


Stay directly at Buda Castle

If you want to live near the Buda Castle complex, I have just the thing for you.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 25

Just a stone’s throw away from this historic site, the 👉 Hilton Budapest offers a luxurious retreat with breathtaking views of the Danube and the castle.

The rooms are tastefully furnished and offer comfort and elegance.

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Room with a view of the Hungarian Parliament.

You’ll enjoy first-class amenities, including a fitness center for your daily workout and exquisite dining options.

When you stay at the Hilton Budapest, you will experience the perfect blend of luxury and a first-class location.


3. Terézváros – the best place to shop

Let’s go to Terézváros, also known as District VI.

This district is a vibrant mix of history, culture and modern city life – it has a little bit of everything and does it all in style.

Terézváros is home to the magnificent Andrássy Avenue, a UNESCO World Heritage Site with breathtaking neo-renaissance villas and townhouses.

Here you will find the best hotels in the region. 👈

Andrassy Street | Andrassy Avenue | Budapest | Hungary | Things To Do In Budapest

This magnificent boulevard is home to the Hungarian State Opera, which should definitely be visited for its exquisite architecture and world-class performances.

Where to stay in Budapest? The 5 best areas and places in Hungary's capital 🇭🇺 29

Those interested in culture will get their money’s worth here. Terézváros is also known as the “Broadway of Budapest” due to its impressive collection of theaters and galleries.

And if you are a fan of literature, you will feel right at home in the neighborhood’s many bookshops and literary cafés.

When it’s time to eat, you have a wide choice of options, from upscale restaurants to quirky eateries serving the best Hungarian cuisine.

And for those who like to go out, the district’s vibrant nightlife offers everything from laid-back pubs to buzzing clubs.

But Terézváros has even more to offer: beautiful parks and green spaces that are perfect for a leisurely afternoon stroll or a picnic.

And with metro line 1 (the first metro line in continental Europe) and numerous bus and streetcar lines, getting around is a breeze.

Oldest metro of Europe | Millenium Metro, Budapest, Hungary | Yellow line 4k

Terézváros offers a mix of cultural richness, vibrant city life and quiet places to relax, making it a prime choice for your stay in Budapest.

Charming accommodation in Budapest – Callas House

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If you want to stay in a place where the design matches the urban style and the details are right, then this is a great place to stay in Budapest.

The hotel is also located right next to the opera and will pick you up from Budapest airport on arrival.


4. Erzsébetváros, the Jewish quarter – the best place for nightlife

Let’s start right away with Erzsébetváros, also known as District VII. If you are a young traveler or a night owl looking for an energetic hustle and bustle and a vibrant nightlife, then this district is for you.

Erzsébetváros is best known as the home of Budapest’s “ruin bars”. These unique bars, housed in abandoned buildings and furnished with eclectic furniture, offer a unique night-time experience.

Here you will find the best hotels in the region. 👈

The granddaddy of them all is the Szimpla Kert, a huge, multi-storey bar that is an institution in its own right.

Szimpla Kert - The original Budapest Ruin Bar / Club - POV Tour - Walkthrough

But Erzsébetváros has more to offer than just its party scene.

The district is also the historic Jewish quarter, and sights such as the synagogue on Dohány Street (the second largest in the world) and the haunting Holocaust Memorial Center are well worth a visit.

During the day, you can discover a variety of trendy cafés, boutiques and local markets. The neighborhood’s street art scene is booming, so keep your eyes peeled as you stroll the streets and look out for colorful murals.

[4K] Budapest walks - District 7 - Erzsébetváros

Although Erzsébetváros is known for its nightlife, it also offers quiet corners. The quiet Klauzál Square and the pretty Erzsébet Square are perfect for a little break.

If you are looking for a lively neighborhood with a rich history, vibrant nightlife and trendy flair, Erzsébetváros is the place for you.

Continental Hotel – Hotel with rooftop pool in Budapest (my favorite hotel)

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The 👉 Continental Hotel is my favorite hotel in Budapest. You can easily jump into the hotel’s indoor or outdoor pool when you need a refreshing dip to get rid of the worst of Szimpla Kert’s hangover.

I booked this hotel during the Sziget Festival in Budapest 2022 and was very satisfied.

Apart from the fantastic rooftop pool, it is overall a good hotel with an excellent breakfast and plenty of space to relax in the sun on the roof of the hotel.

The hotel’s fitness room is also the best I’ve ever seen, so you can work up a sweat on your trip to Budapest too.


5. Ujlipotváros – Best place to stay for families

Ujlipotváros is a good choice for families traveling to Budapest for many reasons.

The district is particularly family-friendly because there is plenty on offer for adults and children.

Margit Sziget is located right next to Ujlipotváros on the Danube and is a quiet oasis in the middle of the urban landscape.

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Margaret Island (Margareteninsel)

The children can take part in various outdoor activities while the adults enjoy the peace and quiet. It is an ideal place for a family outing, offering the opportunity to immerse yourself in nature again in the city center.

Here you will find the best hotels in the region. 👈

There is a large selection of family-friendly restaurants and cafés in the area. These eateries cater to a wide variety of tastes, so everyone from toddlers to grandparents will find something to their liking.

Another aspect that makes Ujlipotváros a good choice for families is the Westend shopping center.

With over 400 stores, this center has everything you need for shopping. Here you’ll find everything from children’s clothes to toys, making it an easy solution for every family’s retail needs.

The main attraction of Ujlipotváros for families is that it combines recreation, gastronomy and shopping in a lively district.

This mix of convenience and variety makes it an ideal base for families wanting to explore Budapest.

Danubius Hotel Helia – a child-friendly 4-star hotel

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When the children need a break from the city, sightseeing and long walks, it’s great that they can also have fun indoors.

There are 4 heated swimming pools in this beautiful hotel. The rooms are spacious, some with a bathtub and double washbasin, which makes it easier when the whole family has to get out the door in the morning.


So there is a whole range of options for staying overnight in Budapest.

But now I’ve given you a good overview of the most popular areas and helped you find accommodation.

If you know of any other good areas or hotels in Budapest or have any questions about the Hungarian capital, please feel free to leave a comment.

Websites that I use to book my trips

  • 👉 Agoda is my favourite site for booking hotels and unique stays.

  • 👉 GetYourGuide is my top pick for booking tours and activities worldwide.

Frequently asked questions:

What is the best area of Budapest to live in?

If you want to live where life pulsates, where history meets modernity, the city center is an excellent choice. Made up of neighborhoods such as BelvárosLipótváros, Erzsébetváros (also known as the Jewish Quarter) and Terézváros, it is the pulse of Budapest.

Belváros – Lipótváros, located in the heart of the city, offers a mixture of splendor and comfort. This district, characterized by stately architecture, is home to several important sights such as the Hungarian Parliament Building and St. Stephen’s Basilica. With easy access to public transportation and a variety of restaurants and shopping options, your stay in Belváros – Lipótváros puts you right in the middle of the action, making it an ideal base for first-time visitors.

If you’re looking for a mix of history and vibrant nightlife, Erzsébetváros, popularly known as the Jewish Quarter, might be just the place for you. Here you can stroll through the streets shaped by time, explore important landmarks such as the Great Synagogue and experience the unique atmosphere of Budapest’s ruin bars as night falls. This fusion of past and present creates a dynamic and exciting environment in which to settle down.

Finally, the Terézváros district blends into the mosaic of the city center. Known for its Art Nouveau architecture and the bustling Andrássy Avenue, a UNESCO World Heritage Site, Terézváros is not only known for its aesthetics. Terézváros is also a shopping center with luxury boutiques lining the streets and the cultural heart of the city, home to the State Opera.

Each of these districts has its own character, but all are woven together by the common threads of comfort, culture and vibrant city life. They are all excellent options for tourists and make the city center arguably the best area to stay in Budapest.

Which areas in Budapest should I avoid?

Although Budapest, like any other major city, is generally safe for tourists, there are certain areas where caution is advised, especially late at night. Here are a few areas where you might want to be more careful:

District VIII (Józsefváros): This district, especially its outer part, is traditionally considered less safe. However, the inner part of the district, the so-called Palace District, is quite safe and beautiful.

District X (Kőbánya): Some areas in this district are known for a higher crime rate. It is off the typical tourist trail, so there is usually no reason for visitors to go there.

Train and metro stations: As in many cities, train stations are sometimes a stomping ground for pickpockets, especially at peak times. It’s a good idea to be vigilant in these areas and keep an eye on your belongings.

Remember that these are just precautions. Budapest is a wonderful city to explore and tourists rarely have problems. Just stick to common sense that you would in any other city: don’t flaunt expensive items, avoid secluded areas at night and be aware of your surroundings.

Where should I stay the first time in Budapest?

The Jewish Quarter, also known as Erzsébetváros, is an excellent choice for first-time visitors to Budapest looking for a lively nightlife. Here you will find historical landmarks and vibrant nightlife venues, such as unique ruin bars and trendy clubs.

If, on the other hand, you are looking for a quieter stay with easy access to the sights, you should consider BelvárosLipótváros. This city center neighborhood is close to attractions like the Hungarian Parliament Building and St. Stephen’s Basilica, providing a quiet yet convenient base for exploring.

Is it better to stay in Buda or Pest?

Deciding between Buda and Pest as a starting point for your visit to Budapest depends largely on what kind of experience you are looking for.

Pest, located on the eastern side of the Danube, is the beating heart of the city. Most of Budapest’s sights, restaurants, nightlife and shopping centers are located here. This district exudes the energy of a vibrant city, with the streets teeming with locals and tourists alike. Choosing to stay in Pest puts you at the epicenter of the action, with quick and easy access to many of the city’s most popular spots.

But not all of Budapest’s charm lies in Pest. On the other side of the Danube lies Buda, which embodies a completely different flair. While it’s true that Pest often steals the limelight with its abundance of attractions, Buda has a unique appeal with its tranquil atmosphere and scenic beauty.

One of the districts in Buda, Várkerület, also known as the Castle District or Budvar, is highly recommended. With its quiet, almost idyllic atmosphere, Várkerület offers a stark contrast to the bustling Pest. There are fewer tourists here and more opportunities to immerse yourself in the local culture.

A stay in Buda, and especially in Várkerület, is like taking the lid off Budapest’s exterior and delving deeper into the soul of the city. You have the opportunity to experience the city beyond the popular sights and get to know Budapest’s quieter, more tranquil side.

When is the best time to visit Budapest?

Budapest is a city that offers unique attractions all year round, and the best time to visit often depends on your personal preferences.

If you like mild temperatures and fewer tourists, spring (March to May) could be the perfect time of year for you. During this time, the city starts to bloom, the parks are green and fresh and there are plenty of outdoor activities.

In summer (June to August), on the other hand, Budapest is quite lively and the city really comes to life. This is the high season for tourists and there are many activities and events taking place, including numerous festivals such as the Budapest Summer Festival and the Sziget Festival. Remember that temperatures can rise, so make sure you are comfortable in warm weather.

Both spring and summer have their own charms, and a visit to Budapest in either season can be a fulfilling and enjoyable experience.

I was in Budapest in both spring and summer, and both were amazing in their own way.

How many days should you spend in Budapest?

Three full days in Budapest allow tourists to get a balanced overview of the city. This amount of time provides ample opportunity to explore the main sights, immerse yourself in the local culture, sample Hungarian cuisine and even relax in one of the city’s famous thermal baths. Don’t forget that the city’s layout and efficient public transportation make it easy to move between sights so you can make the most of your time in Budapest.


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Tushar

Hi, I’m Tushar, a travel enthusiast based in Berlin! I love exploring the world, discovering exotic cuisine, and uncovering hidden stories in every destination.

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