5 BEST Neighborhoods in Budapest [December 2024!]
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With magnificent landmarks, wild nightlife scene, youthful atmosphere and rich history and culture, it’s no wonder the Hungarian capital is one of Europe’s most exciting travel destinations.
But Budapest is HUGE, and it can also be surprisingly expensive.
That’s why we wrote this insider’s guide to where to stay in Budapest, so you can stay somewhere awesome while saving a little money while exploring this one-of-a-kind city.
This bargain guide will introduce you to the city’s coolest neighbourhoods – no matter your travel style!
By the end of this article, you’ll be able to confidently book a hotel in a neighbourhood that meets your style AND your budget.
These are our top picks for where to stay in Budapest.
Additional reading – 17 Best Hotels in Budapest, and the 15 Best Things to Do in Budapest
Table of Contents
- Where to Stay in Budapest
- Budapest’s 5 Best Neighborhoods to Stay in
- Neighborhood #1 - District I / Várkerület
- (Where to stay in Budapest for your first time)
- Things to See and Do in Várkerület
- Where to Stay in Várkerület
- Neighborhood #2 - District VI / Terézváros
- (Where to stay in Budapest on a budget)
- Things to See and Do in Terézváros
- Where to Stay in Terézváros
- Neighborhood #3 - District VII / Erzsébetváros
- (Best area to stay in Budapest for nightlife)
- Things to See and Do in Erzsébetváros
- Where to Stay in Erzsébetváros
- Neighborhood #4 - District VIII / Józsefváros
- (Coolest place to stay in Budapest)
- Things to See and Do in Józsefváros
- Where to Stay in Józsefváros
- Neighborhood #5 - District V / Belváros-Lipótváros
- (Best neighbourhood in Budapest for families)
- Things to See and Do in Belváros
- Where to Stay in Belváros
- Final Thoughts on Where to Stay in Budapest
Quick Tips – Where to Stay in Budapest
At A Glance: Where To Stay In BUDAPEST
Where to Stay in Budapest
Looking for a specific place to stay? These are our highest recommendations for places to stay in Budapest.
| WHERE TO STAY IN BUDAPEST | |||
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BEST Air BnBBEST Air BnBTomi’s BnB |
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Book on Air BnB → |
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BEST Budget HotelBEST Budget Hotel Six Inn Budapest |
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Book on Booking.com → |
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BEST Mid-RangeBEST Mid-RangeBaltazar Budapest |
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Book on Booking.com → |
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BEST Luxury HotelBEST Luxury HotelCorinthia Hotel Budapest |
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Book on Booking.com → |
Best Air BnB in Budapest – Tomi’s BnB
Tomi’s BnB is the best Air BnB in Budapest
Putting you in a historic building in the beating heart of Budapest, you will be blown away with the stunning views and homey atmosphere of this BnB! Complete with a cozy lounge, roomy bedroom, and a kitchen, you will have everything you need to feel right at home in Budapest!
Best Budget Hotel in Budapest – Six Inn Budapest
Six Inn Budapest is the best budget hotel in Budapest
This charming three-star hotel located in Terézváros is one of our top recommendations for where to stay in Budapest.
It is close to Andrassy Avenue, great local shops and a wide variety of restaurants and bars. It is modern, comfortable, and the rooms have private bathrooms and a range of essential amenities.
Best Mid-Range Hotel in Budapest – Baltazar Budapest
Baltazar Budapest is the best mid-range hotel in Budapest
Baltazar Budapest is a rustic and charming four-star hotel in the heart of District I / Várkerület. It is walking distance to Buda Castle, Fisherman’s Bastion, restaurants, bars, shops and more. Each room is comfortable, spacious and has modern amenities, including flat-screen TVs and free wifi.
Best Luxury Hotel in Budapest – Corinthia Hotel Budapest
Corinthia Hotel Budapest is the best luxury hotel in Budapest
Elegant and opulent, Corinthia Hotel Budapest is our top recommendation for where to stay in Erzsébetváros.
This five-star hotel has an indoor pool, a Turkish steam bath, and a range of wellness amenities for guests to enjoy. The rooms are large and luxurious and each has slippers, a mini-bar and a comfortable seating area.
Budapest Neighbourhoods Guide
Budapest Neighbourhoods Guide
Budapest, Hungary is stunning – and our neighborhood guide will show you which area best suits you 🙂
Budapest is a massive city that brilliantly combines old world charm and modern flare.
The historic, economic and cultural capital of Hungary, Budapest is a city bustling with vibrancy and energy. Thanks to its grand architecture, vivacious nightlife scene, lush natural surroundings, and magnetic energy, Budapest is one of the most beautiful and popular destinations in Europe.
Hotel Jules Insider Tip
Divided into 23 districts, the majority of Budapest’s main attractions can be found in the neighbourhoods surrounding the city centre.
District I / Várkerület is a magical neighbourhood found on the Buda side of the river. Home to Buda Castle and Fisherman’s Bastion, this historic ‘hood is where you’ll find many of the city’s most famous landmarks.
Across the river is District V / Belváros or Pest. The modern centre of the city, Belváros is a great draw for families and foodies thanks to the Great Market Hall and a wide variety of world-class restaurants and quaint cafes.
When it comes to Budapest’s hidden gems, there are no better neighbourhoods than District VII / Erzsébetváros and District VIII / Józsefváros. These trendy areas are packed with cool cafes, hip bars, vibrant street art and a youthful atmosphere.
Whether you’re a backpacker on a budget or a billionaire ready to ball out, there is a neighbourhood in Budapest that’s perfect for you! Full of extravagant architecture, interesting history, delicious food, and hip ruin bars; Budapest is always a good idea!
Still not sure where to stay in Budapest? Don’t worry, we’ve got you covered.
Budapest’s 5 Best Neighborhoods to Stay in
Now let’s take a look, in greater detail, at the best neighbourhoods to stay in Budapest. Each is a little different to the last so be sure to check out which neighbourhood is right for you!
Neighborhood #1 - District I / Várkerület
Neighborhood #1 - District I / Várkerület
(Where to stay in Budapest for your first time)
District I / Várkerület is our pick for where to stay in Budapest on your first time
District I / Várkerület is the historic centre of Budapest. Located on the west, or Buda, side of the Danube River, it is a colourful and traditional neighbourhood and is our recommendation for where to stay in Budapest if you’re visiting for the first time.
Várkerület is home to some of Budapest’s most famous landmarks. From Buda Castle and Fisherman’s Landing to Gellért Hill and the Citadelle, this Budapest neighbourhood is packed with history and legend around every curve.
Wander the charming cobblestone streets and take in the colourful décor as you enjoy your time in this awesome neighbourhood.
Thanks to its hilly terrain, Várkerület is also the ultimate destination for photographers looking to get those iconic overviews of Pest and the Danube. From the balcony of Fisherman’s Bastion to the top of the Citadelle, this side of the city is no doubt where you’ll snap your most Instagram-worthy shots.
Things to See and Do in Várkerület
- Explore the imposing Buda Castle that dates back to the 13th century.
- Take in unbeatable views of Budapest and the Danube River from Fisherman’s Bastion.
- Stand in awe of the marvellous St. Matthias Church with its colourful tiles and ornate details.
- Climb to the top of Gellert Hill and enjoy some of the best views in the city.
- Rest, relax and rejuvenate in Rudas Baths, Turkish thermal baths built in the late-16th century.
- Grab a coffee, a piece of cake and enjoy the atmosphere at Ruszwrum, one of the oldest cafes in the city.
- Visit Panoramia Café for a delightful treat coupled with a brilliant view of the city.
Where to Stay in Várkerület
Best Air BnB in Várkerület – Ilona’s BnB
Ilona’s BnB is the best Air BnB in Várkerület
Located right by the world-famous Budapest Baths and public transportation, this apartment will put you right by all the best sites in the city! With its modern style and second to none comfort, you will be getting a hotel’s standard of comfort with all of the charm and style of a bed and breakfast!
Best Budget Hotel in Várkerület – Hotel Orion Varkert
Hotel Orion Varkert is the best budget hotel in Várkerület
This modern hotel is conveniently located in Várkerület. It is a short walk to clubs, bars, restaurants, and Budapest’s top tourist attractions.
The rooms are comfortable and contemporary and each is outfitted with air conditioning and a mini bar. The hotel serves a hot daily breakfast and has a relaxing on-site bar.
Best Mid-Range Hotel in Várkerület – Baltazar Budapest
Baltazar Budapest is the best mid-range hotel in Várkerület
Baltazar Budapest is a rustic and charming four-star hotel in the heart of the city. It is walking distance from Budapest’s most famous landmarks. Each room is comfortable, spacious and has modern amenities. Baltazar Budapest is one of our top picks for where to stay in Várkerület.
Best Luxury Hotel in Várkerület – Maison Bistro & Hotel
Maison Bistro & Hotel is the best luxury hotel in Várkerület
Enjoy ultimate luxury in historic Buda at Maison Bistro & Hotel. Just a short walk from Buda Castle and St. Matthias Church, this hotel is the perfect base for your time in the city. It has 17 elegant rooms each with air conditioning, contemporary amenities and a comfortable seating area.
Neighborhood #2 - District VI / Terézváros
Neighborhood #2 - District VI / Terézváros
(Where to stay in Budapest on a budget)
District VI / Terézváros is our pick for where to stay in Budapest on a budget
Located on the Pest side of the Danube River, District VI / Terézváros is a small but packed neighbourhood. A hub of excitement and activity, Terézváros is a popular destination for Budapest’s artistic, creative and cultural communities.
There’s plenty to see and do in Terézváros, from lounging in the Szechenyi Baths and exploring Heroes Square to visiting the House of Terror Museum and wandering historic Andrassy Avenue.
Nestled between District V and VII, Terézváros is home to a great variety of affordable accommodation options. Whether you want to stay in a social hostel, a funky boutique or a luxurious hotel, this neighbourhood has plenty of places to lay your head without breaking your budget.
Those who love a cheap and cheerful meal will also want to check out Terézváros as it’s home to some of Budapest’s best Hungarian restaurants. Satisfy your taste buds and sample everything from goulash and paprikas to coffee, cakes and more at one of Terézváros many cafes and restaurants.
Things to See and Do in Terézváros
- Take a stroll along the magnificent Andrassy Avenue, a 19th-century tree-lined avenue that is a World Heritage Site.
- Sample amazing Hungarian dishes, including goulash, pasta, ribs and duck at VakVarju Restaurant.
- Explore Budapest’s dark and tumultuous history at the House of Terror Museum.
- Spend an afternoon relaxing in the Szechenyi Baths and Pool, an immense thermal pool built within a colourful palace-like property.
- Grab a slice of delicious and filling pizza at Pizzica.
- Enjoy great coffee, cocktails and more at cute and cosy 9Bar.
- Visit Heroes’ Square, the largest square in Budapest and home to the Millennial Monument and a statue of the Archangel Gabriel.
Have some time in Budapest? These are our favorite day trips from Budapest!
Where to Stay in Terézváros
Best Air BnB in Terézváros – Regina’s BnB
Regina’s BnB is the best Air BnB in Terézváros
This loft located in the Terézváros neighborhood of Budapest is by far one of the cutest boutique BnBs in the whole city! With its soft colors and windows that fill the rooms with the sun, there is no better place to wake up and sip on a cup of coffee before heading out to explore all the nearby sights of the city!
Best Budget Hotel in Terézváros – Six Inn Budapest
Six Inn Budapest is the best budget hotel in Terézváros
This charming three-star hotel is centrally located in Terézváros. It is close to Andrassy Avenue, great local shops and a wide variety of restaurants and bars. Modern and comfortable, this hotel has large rooms, private bathrooms and a range of essential amenities.
Also enjoy free wifi and a knowledgeable and friendly staff.
Best Mid-Range Hotel in Terézváros – K+K Hotel Opera
K+K Hotel Opera is the best mid-range hotel in Terézváros
A great location, helpful staff and luxurious amenities are just a few of the reasons this is one of our favourite hotels in Terézváros.
It has a spa, wellness centre and Finnish sauna, perfect for relaxing after a day of sightseeing. Enjoy flat-screen TVs, coffee facilities and a great daily breakfast at this four-star hotel.
Best Luxury Hotel in Terézváros – Hotel Moments Budapest
Hotel Moments Budapest is the best luxury hotel in Terézváros
Hotel Moments Budapest is an elegant and grand four-star hotel in Terézváros. It has a sauna, restaurant and stylish bar, perfect for unwinding after a long day on the town. It is close to restaurants, bars, clubs, museums and iconic landmarks. You won’t find a better base for your stay in Terézváros.
Neighborhood #3 - District VII / Erzsébetváros
Neighborhood #3 - District VII / Erzsébetváros
(Best area to stay in Budapest for nightlife)
District VII / Erzsébetváros is our pick for best area to stay in Budapest for nightlife
District VII / Erzsébetváros is a lively and vibrant neighbourhood located on the Pest side of Budapest. Sandwiched between affordable Terézváros and trendy Józsefváros, Erzsébetváros is famous for its ruin bars, wild clubs, and for the most exciting nightlife in Budapest.
The smallest district in the city, Erzsébetváros attracts a huge population of students, backpackers, night owls and party animals thanks to the bars, clubs and hotspots that line its cobbled streets.
It’s here that you can visit the city’s infamous ruin bars. Built within rundown and derelict industrial spaces, ruin bars are some of the most popular places to grab a drink and dance the night away under the stars.
But there’s more to Erzsébetváros than just bars, beats and booze. The city’s Jewish District, Erzsébetváros is home to a number of stunning cultural and religious attractions, including the iconic Dohány Street Synagogue.
Things to See and Do in Erzsébetváros
- Enjoy a night on the town at Szimpla Kert, a traditional ruin bar that serves great drinks in a garden-like setting.
- Sing along to your favourite tunes at Blue Bird Karaoke.
- Sip on a glass of Hungarian wine at Kepzeld el! Wine Bar.
- Kick off your day, or end a great night, by diving into a delicious plate of breakfast foods at Platos.
- Great décor and a good selection of drinks await you at Filo Bar.
- Sample urbane cocktails at rustic and funky Bar Pharma.
- Take a free pub crawl throughout Erzsébetváros and visit the best bars and pubs this neighbourhood has to offer.
Where to Stay in Erzsébetváros
Best Air BnB in Erzsébetváros – Attila’s BnB
Attila’s BnB is the best Air BnB in Erzsébetváros
Mixing minimalist style with a dash of quirky flair, this unique BnB will have you never wanting to leave your new home away from home in downtown Budapest! Complete with a living room, full kitchen, and a cozy bedroom located on the top of a loft, this is a stay you are sure to fall in love with.
Best Budget Hotel in Erzsébetváros – Hotel Hungaria City Centre
Hotel Hungaria City Centre is the best budget hotel in Erzsébetváros
Hotel Hungaria City Centre offers four-star splendour at a fraction of the price. Located close to major tourist attractions, restaurants, boutiques and bars, it’s a great base for your time in Budapest. The rooms are modern and air-conditioned, and each has its own bathroom, mini-bar and refrigerator.
Best Mid-Range Hotel in Erzsébetváros – Eurostars Danube Budapest
Eurostars Danube Budapest is the best mid-range hotel in Erzsébetváros
Colourful décor, contemporary amenities and a central location are just a few reasons why this is one of our favourite hotels in Budapest. It has free wifi, a restaurant and bar, and concierge and laundry services. Enjoy great restaurants and cool boutiques just a few steps from the hotel’s front door.
Best Luxury Hotel in Erzsébetváros – Corinthia Hotel Budapest
Corinthia Hotel Budapest is the best luxury hotel in Erzsébetváros
Elegant and opulent, Corinthia Hotel Budapest is our top recommendation for where to stay in Erzsébetváros.
This five-star hotel has an indoor pool, a Turkish steam bath, and a range of wellness amenities for guests to enjoy. The rooms are large and luxurious and each has slippers, a mini-bar and a comfortable seating area.
Neighborhood #4 - District VIII / Józsefváros
Neighborhood #4 - District VIII / Józsefváros
(Coolest place to stay in Budapest)
District VIII / Józsefváros is our pick for the coolest place to stay in Budapest
Located next to Erzsébetváros is District VIII / Józsefváros, one of Budapest’s up-and-coming neighbourhoods. What used to be one of the rougher and most dangerous districts, Józsefváros has been rejuvenated in recent years and is quickly becoming the coolest neighbourhood in Budapest.
Hip restaurants, stylish bars, casual cafes, exciting clubs, and popular ruin bars are just a few of the things that make Józsefváros a favourite amongst travellers and locals alike.
But don’t expect the same level of wild and crazy that you’d get in Erzsébetváros. You won’t find any rowdy revellers or stag dos here.
Instead, come to Józsefváros for its laidback atmosphere and chic bohemian flair. If you’re looking to hang with locals and enjoy a casual night out, then Józsefváros is the place for you!
Things to See and Do in Józsefváros
- Explore the history of the Hungarian people through the ages at the Hungarian National Museum.
- Grab a coffee and enjoy a morning of people watching at Lumen, a hip café.
- Pack a picnic or take a relaxing stroll through Orczy Park.
- Dine on fresh and delicious tapas and more at Padron.
- Offering up great food and a welcoming atmosphere Café Csiga is a trendy and hip spot in Józsefváros.
- Sample fantastic Hungarian and European fare at Zappa Café.
- Lose yourself in the Hungarian punk scene at Traffik, an atmospheric cellar bar known for playing great music and serving up awesome drinks.
- Spend a night at Corvinteto, a rustic rooftop ruin bar.
Where to Stay in Józsefváros
Best Air BnB in Józsefváros – Brigitta’s BnB
Brigitta’s BnB is the best Air BnB in Józsefváros
With a trolley stop located right outside of this BnB, you could not ask for a better location! This BnB will have you feeling as if you are staying in a proper home with all of its thoughtful touches and welcoming atmosphere. With its inviting lounge, bedroom, and even a kitchen, you will be living like a local in Budapest!
Best Budget Hotel in Józsefváros – Central Hotel 21
Central Hotel 21 is the best budget hotel in Józsefváros
Central Hotel 21 is a cute and charming three-star hotel in Józsefváros. It is a short walk to bars, clubs and the neighbourhood’s top attractions. Comprised of 30 comfortable rooms, this hotel provides guests with a variety of amenities, including a coffee bar, a stylish lounge, and an on-site restaurant.
Best Mid-Range Hotel in Józsefváros – Bo18 Hotel Superior
Bo18 Hotel Superior is the best mid-range hotel in Józsefváros
Hip, minimalist and centrally located, Bo18 Hotel Superior is one of our top recommendations for where to stay in Józsefváros. It is a short walk to restaurants, ruin bars, and the city’s top landmarks. Unwind after a day of sightseeing or before a night on the town by enjoying a drink in the stylish lounge bar.
Best Luxury Hotel in Józsefváros – Hotel Palazzo Zichy
Hotel Palazzo Zichy is the best luxury hotel in Józsefváros
Hotel Palazzo Zichy is a hotel that perfectly combines contemporary and classic style. This four-star hotel has a gym, sauna and free wifi throughout. The rooms have a minibar, private bathroom and comfortable décor. Enjoy a central location and daily breakfast at this fantastic Budapest hotel.
Neighborhood #5 - District V / Belváros-Lipótváros
Neighborhood #5 - District V / Belváros-Lipótváros
(Best neighbourhood in Budapest for families)
District V / Belváros-Lipótváros is the best neighbourhood in Budapest for families
District V / Belváros-Lipótváros is the centre of modern Budapest. Also known as Pest, Belváros-Lipótváros forms the city’s downtown, commercial and economic core. It’s packed with cafes, restaurants and a handful of historic landmarks – and it is our top pick for where to stay in Budapest for families.
One of the most famous landmarks in Budapest is the massive Hungarian Parliament Building. This 19th-century neo-Gothic building stands 96 meters tall and spans more than 260 meters along the banks of the Danube River, and is the third largest parliament building in the world.
Illuminated by twinkle lights at night, the Hungarian Parliament Building is a must-see any time of day.
Aside from architectural gems, Belváros is also a great place to simply wander the streets of Budapest. Whether walking the cobblestone alleys or alongside the Danube, this part of the city is a feast for the senses.
Things to See and Do in Belváros
- See the massive Hungarian Parliament Building, one of the most iconic buildings in Budapest.
- Visit St. Stephen’s Basilica, an enormous parish church that features a 300-foot dome.
- Walk across the Szechenyi Chain Bridge that connects Buda and Pest.
- Take a moment to remember the victims of World War II at the Shoes on the Danube monument.
- Sample and snack your way through the Great Market Hall, the perfect place to grab a cheap and delicious Hungarian lunch.
- Walk along Vaci Street, one of the main thoroughfares in Pest that is lined with shops, restaurants, cafes and more.
- Take a night cruise along the Danube River and see Budapest’s most famous landmarks illuminated by twinkle lights.
Where to Stay in Belváros
Best Air BnB in Belváros – Tom’s BnB
Tom’s BnB is the best Air BnB in Belváros
There isn’t one BnB on this list that can’t quite compare with this apartment when it comes to style. With its designer rooms, splashes of color, and chill vibes, this flat brings all of the charm of a coffee shop straight to your living room! Putting you right by the National Hungarian Museum and the Gellert Bath, you will be staying in the heart of Budapest!
Best Budget Hotel in Belváros – Hotel Rum Budapest
Hotel Rum Budapest is the best budget hotel in Belváros
Hotel Rum Budapest is centrally located in District V and is our best recommendation for where to stay in Belváros.
It is close to Budapest’s top tourist attractions as well as public transit, Gellert Baths and the Danube Promenade. This hip and trendy three-star hotel has 38 air-conditioned rooms, an outdoor terrace, and a comfortable lounge bar.
Best Mid-Range Hotel in Belváros – Prestige Budapest
Prestige Budapest is the best mid-range hotel in Belváros
This charming, recently refurbished hotel is set in the heart of the city. It is close to Budapest’s top landmarks, delicious restaurants and a number of family-friendly activities and attractions.
It has free wifi, minibars, and a friendly and helpful staff. There is also an on-site restaurant and bar, perfect for unwinding after a day of sightseeing.
Best Luxury Hotel in Belváros – Kempinski Hotel Corvinus Budapest
Kempinski Hotel Corvinus Budapest is the best luxury hotel in Belváros
Enjoy five-star features and outstanding views at the Kempinski Hotel Corvinus Budapest. This centrally located hotel is just minutes from restaurants, cafes, bars and more. It has massage services, a spa and free wifi for guests. Enjoy comfortable rooms and modern amenities at this wonderful Budapest hotel.
Final Thoughts on Where to Stay in Budapest
Budapest is a magnificent and stunning city. Whether you want to see amazing architecture, explore its rich history, or dance the night away at a ruin bar, there’s something for travellers of all styles, ages and budgets in Budapest.
To recap; our top recommendation for where to stay in Budapest is District I / Várkerület. Our favourite hotel is the Baltazar Budapest because it offers four-star luxury at an affordable price. Plus, it’s location just steps from Fisherman’s Bastion and Buda Castle really can’t be beaten!
Travelling around Europe? Check out our epic guide to the top 131 things to do in Europe to save you time and money!
Have we missed anything? Let us know in the comments below. Have a safe and fantastic trip to Budapest!
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About the Author Emma Johnson
Emma Johnson lives to travel! Born in Washington D.C., Emma is a hotel connoisseur and a staff writer at Hotel Jules. An army brat, Emma got the travel bug early and has never been able to stop. Now, she has proudly visited 70+ countries and plans to visit every country in the world! Passionate about her ukelele (obviously) and her family, Emma eventually wants to retire in Thailand and write a book about all of her travel experiences.