Hungary

Where to Stay in Budapest – The 7 Best Neighbourhoods

February 23, 2025 /

Budapest is one of my favourite European cities to visit. And choosing where to stay in Budapest can be confusing – trust me, I know.

That’s why I’ve compiled this comprehensive guide to 7 neighbourhoods you should consider staying in, depending on your budget and preferences.

What makes Budapest such a unique and interesting city is that it’s divided into two sides – Buda and Pest – by the Danube River. It wasn’t until 1873 that the city was united, 24 years after the famous Széchenyi Chain Bridge was built.

So naturally, each side has something different to offer. If you’re looking to stay near Buda Castle (one of the city’s biggest attractions), staying on the Buda side is what you’ll want. But the city centre is actually situated on the Pest side, where there are definitely more tourist-friendly areas to stay in.

The 23 districts of Budapest are numbered, I to XXIII (with Margaret Island as a ‘bonus’ district!), with the lower numbered districts situated closer to the city centre.

Buda Side

1. Castle District (District I)

Buda Castle, Where to Stay in Budapest

If you’re visiting Budapest for the first time and plan on visiting many of the big attractions, Buda Castle District is a great choice.

Although it’s situated near the castle, it’s relatively quiet and romantic (especially in the evenings, when most of the tourist crowds are gone). It has a medieval charm, with tons of cobblestone streets and gorgeous architecture.

Because the district is situated at one of the highest points of the city, you’ll find some of the best views of Budapest here.

The district is very walkable, but if you need to get to the rest of the city and don’t want to walk, take bus 16 to Pest.

If you plan on staying in this district, though, be aware that it’s not super busy at night, especially regarding dining options and nightlife. It’s also one of the more expensive areas to stay in.

Fisherman's Bastion, Where to Stay in Budapest

The Best Things to Do in the Castle District

Because the Buda Castle District has such a rich history, it has lots of must-visit spots. You can easily spend the whole day wandering around and visiting all the sights, including:

  • Buda Castle: A visit to the castle will include the Hungarian National Gallery and the Budapest History Museum.
  • Matthias Church: This church is really unique, with its colourful tiles on the roof (but to be honest, it’s like almost every other European church inside).
  • Fisherman’s Bastion: A great place for beautiful photos and some of the best panoramic views of the city.
  • The Hospital on the Rock: This is a unique museum, situated inside a former World War II bunker.
  • The House of Houdini: A cute little museum where you can watch magic shows.

Places to Stay in Buda Castle District:

2. Óbuda (District III)

Margaret Island, Where to Stay in Budapest

Óbuda is one of the oldest, most historical districts of Budapest. It’s perfect if you’re looking for a relaxing, local atmosphere. There aren’t as many tourists here, because it’s a bit further from the city centre. Take the suburban H5 train or a bus to get to the city – you can expect a journey of about 20 to 30 minutes.

It’s not quite as easy to reach everything on foot, because the attractions are spread out and the district is quite big, so consider renting a bicycle or taking the buses.

Óbuda has limited nightlife, so it’s ideal for families or anyone looking for a relaxing getaway – it’s also conveniently located near some thermal baths and has many parks.

The Best Things to Do in the Óbuda District

You don’t have to travel all the way to the city centre every day for something fun to do! Though it’s not full of huge tourist attractions, it still has lots of great spots to check out:

  • The Aquincum Museum and Ruins: Explore ancient Roman ruins and their history in the city.
  • Margaret Island: Plan a day trip to the beautiful little island on the Danube River, perfect for families. Check out my guide to planning a trip to Margaret Island here.
  • The main square (Fő tér): Has beautiful historical buildings and charming local cafés.
  • The Vasarely Museum: A museum of op art (optical illusion art).
  • Római Part: A beautiful area on the banks of the Danube, perfect for walks or having brunch outside.

Places to Stay in Óbuda District:

3. Gellért Hill & Tabán (District I & XI)

The last area I’d recommend for visitors on the Buda side is Gellért Hill & Tabán. You’ll get amazing views and a laid-back local atmosphere.

It’s very walkable, although also quite hilly, with easy access to the rest of the city. And though it’s quiet at night, it’s close enough to the city centre to enjoy a night out on your trip while staying here.

The Best Things to Do in Gellért Hill & Tabán

  • Gellért Hill: Climb Gellért Hill to see the Citadel and the Liberty Statue up close. This is also the best place to go for beautiful views of the city at sunset.
  • Tabán: Wander around the charming streets to explore art and the local culture.
  • Gellért Baths: One of the biggest and most well-known thermal baths of Budapest.

Places to Stay in the District:

Pest Side

4. Belváros (District V)

Hungarian Parliament Building, Where to Stay in Budapest

If you want to be right in the middle of the action, Belváros is the district for you! It’s the most conveniently located, with a great nightlife scene and tons of great dining and accommodation options.

Belváros is very walkable, with most attractions located pretty close to each other, but don’t worry – the district is very well-connected by buses, trams, and the metro.

There’s always something happening in the area, from food markets to live music events. Do some research before your visit to find out where you can go.

Of course, because it’s right in the central, touristy part of Budapest, it’s always pretty crowded and the prices for food and accommodation are higher than most other areas.

The Best Things to Do in the Belváros District

  • St. Stephen’s Basilica: A stunning medieval-style church with beautiful city views.
  • Hungarian Parliament Building: Probably the most iconic building in the city. Take a sunset cruise on the Danube River for the best views of it.
  • Gelateria Rosa: A small gelateria right next to St. Stephen’s Basilica that shapes your gelato into roses.

Places to Stay in the District:

5. Jewish Quarter & Erzsébetváros (District VII)

Budapest has one of the most beautiful Jewish Quarters in Europe. This district has an artistic vibe with a rich history and a vibrant nightlife.

It’s also located close to many attractions and has excellent public transport connections to the rest of the city.

If you’re looking for something more relaxing and quiet, this probably isn’t the neighbourhood for you. Because of its nightlife scene, it can be a bit noisy, especially at night.

The Best Things to Do in the Jewish Quarter and Erzsébetváros District

  • Dohány Street Synagogue: Get a deeper understanding of the Jewish history of Budapest.
  • Ruin Bar Hopping: Experience the city’s famous ruin bars by going from bar to bar.
  • New York Café: One of the most beautiful cafés in the world – a must-visit for anyone traveling to Budapest.

Places to Stay in the Jewish Quarter and Erzsébetváros District:

6. Terézváros (District VI)

This district is centrally located, with iconic, historic landmarks, but it still has a modern artistic vibe. Terézváros is a great place to stay if you’re young, like trendy cafés and art, and are looking to spend a night out on the town.

It’s one of the easiest districts to explore on foot, because everything’s really close together. If you want to get to other parts of the city, you’ll have to take public transportation.

The neighbourhood is bound to be busy and on the more expensive side, because it’s a popular district to stay in.

The Best Things to Do in the Terézváros District

  • Hungarian State Opera House: Watch a performance at this famous theatre.
  • Andrássy Avenue: Wander the well-known boulevard and admire the stunning historical buildings.
  • Experience the Nightlife by checking out live music events and ruin bars.
  • Széchenyi Thermal Baths: Relax at the biggest, most famous bath house in Budapest.

Places to Stay in the Terézváros District:

7. Józsefváros (District VIII)

Józsefváros used to be a working-class neighbourhood and it is now a district full of modern art and local markets. It’s less touristy than other areas, but it still has a great nightlife scene, if that’s what you’re looking for.

This district is the ultimate spot for anyone who wants to explore Budapest beyond just the famous tourist attractions. If it’s not your first time visiting the city, and you’ve already seen Buda Castle, the Parliament Building, and St. Stephen’s Basilica, this neighbourhood will offer a more local experience.

It’s still close to the city centre, though, so if you do want to do some sightseeing, it’s still a great place to stay.

The Best Things to Do in the Józsefváros District

  • The National Museum: The perfect place to learn about Hungary’s history.
  • Rákóczi Market Hall: A massive hall with tons of vendors – this is the perfect place to find souvenirs and try local food.
  • Orczy Park: A beautiful park, perfect for a picnic or just going for a stroll.

Places to Stay in the Józsefváros District:

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