Budapest might just be one of the best cities in Europe – it’s got history, impressive architecture, thermal baths, and a youthful atmosphere.
Whether you’re looking to go wine tasting, immerse yourself in a fascinating museum or visit the stunning Buda Castle, there’s plenty to see and do in Budapest. And the good news is, it’s affordable too!
However, Budapest is quickly gaining popularity and is on everyone’s European backpacker itinerary. With so many tourists, the number of Budapest accommodation options is increasing all over the city.
That’s why I prepared this guide on the best neighborhoods, to help you decide where to stay in Budapest. I’ve considered budget, location, amenities, cleanliness and facilities, as well as the top attractions nearby.
So, when you’re ready. Let’s take a look!
Looking for a specific place to stay in Budapest but don’t have much time? These are my highest recommendations for places to stay in Budapest.
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Best Airbnb in Budapest: Centrally located apartment for 2 or 4
Located seconds away from the UNESCO World Heritage Sites of Budapest and the Budapest Terez Korut in District V, this apartment is perfect for anyone travelling to Budapest for the first time. It’s also close to restaurants, bars, and shops in the inner city, and comes with a fully equipped kitchen, wifi, and air-con.
Best Hotel in Budapest: Leo Boutique Rooms, Budapest
Luxurious and refined, the Leo Boutique Rooms is an up-and-coming boutique hotel in Budapest that opened its doors in December 2021 and has easily hit the number one spot for the best hotel in the city. Located in the iconic Ferenciek Tere area of district V, this gorgeous Budapest hotel is located in a historic building and has elegantly-designed, spacious rooms equipped with a variety of modern amenities including air conditioning and private bathrooms. Its city center location means you are within walking distance of the Hungarian National Museum, the Great Market Hall, and the Jewish quarter.
Best Hostel in Budapest: Good Vibe Hostel
This is the best place to stay in Budapest for solo travelers and backpackers alike. This hostel is located near the Jewish quarter in District V so is close to everything, from the city’s coolest ruins to thermal baths and the Chain Bridge. Well equipped with everything you might need, this hostel offers private and shared rooms that are comfortable and clean.
If this is not quite the right place for you, check out our Budapest Hostel Guide for even more cool hostel options!
Good Vibe Hostel is one of our favourites in Budapest but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.
Várkerület
District I Várkerület, or the Castle District, is one of the most iconic neighbourhoods in Budapest. Located on the Buda side of the River Danube, this district offers quaint cobblestone streets, grand medieval architecture and picturesque views.
Terézváros
District VI, Terézváros, is one of the smallest yet most densely populated neighbourhoods in Budapest. Located on the Pest side of the Danube, this lively district is a hub of excitement and activity.
Erzsébetváros
The smallest district in Budapest, District VII Erzsébetváros packs a big punch. The city’s historic Jewish Quarter, this central neighbourhood is home to a number of heritage, cultural and religious sites, including several notable synagogues.
Józsefváros
A few years ago, travellers would have avoided Budapest’s District VIII Józsefváros at all costs. Rough and dangerous, it was not a nice place to visit. Thanks to an influx of stylish bars, trendy restaurants and independent boutiques, Józsefváros is now one of the hottest neighbourhoods in the city.
Belváros
Located on the eastern edge of the River Danube, Belváros or Pest is the downtown and heart of the city. One of the biggest neighbourhoods in Budapest, this is where you’ll find a variety of historic and cultural attractions, including the Parliament Building, the Chain Bridge, and the Central Market Hall.
Grand and magnificent, Budapest is a jewel on the River Danube. The capital city is known for its impressive architecture, historical attractions, youthful atmosphere, and vibrant nightlife. As well as its long history and hearty goulash soups.
When it comes to places to stay in Budapest, you’re never short of options. However, some neighborhoods are more ideally located than others. Here’s where I would recommend staying.
To the west of the River Danube is Várkerület. Otherwise known as the Budapest Castle District, this neighbourhood is famous for stunning landscapes, ornate palaces, the gorgeous Fisherman’s Bastion and Matthias Church, and impressive views from Castle Hill. With so much to explore, it’s the best district for those backpacking Budapest for a unique stay.
If you’re traveling on a budget, District VI is a popular area that provides wallet-friendly accommodation. Known as Terézváros, or the Palace District, it’s close enough to the best sights of Budapest that you won’t have to make any unnecessary sacrifices. One of the reasons I love this area is because many of the accommodation options are in old historical buildings, sometimes even a palace, so you get a really unique stay.
For the best nightlife, stay in District VII or Erzsébetváros. This area is full of the best bars, restaurants, and clubs in the area, it’s a great place to stay if you want to meet like-minded travelers. It’s also close to the Jewish quarter and is the ideal location for budget travelers wanting to see the ruin bars.
Józsefváros, also referred to as District VIII, is the coolest area to stay in Budapest. It’s an up-and-coming area of the city containing a combination of the old and ruined with contemporary and stylish shops, bars, and restaurants.
Finally, District V (aka Belváros or Pest) is the downtown Budapest and the heart of the city. This neighbourhood is home to great restaurants, impressive architecture, and a number of key cultural and historic sights. It’s a great all-rounder and is within walking distance of many of the top sites in Budapest’s inner city, and my top recommendation for families visiting Budapest.
5 Best Neighborhoods to Stay in Budapest
Whether you’re just visiting for the weekend or planning to stay for longer, there are a ton of great hotels in Budapest. Read on to learn more about the best five neighbourhoods in Budapest.
1. District I / Várkerület (Buda) – Where to Stay in Budapest for your a Unique Stay
District I Várkerület, or the Castle District, is one of the most iconic neighbourhoods in Budapest. Located on the Buda side of the River Danube, this district offers quaint cobblestone streets, grand medieval architecture, and picturesque views.
Castle district is the place to stay if you’re interested in seeing the Fisherman’s Bastion, Mathias Church, stunning art galleries, and of course the amazing view of the city from the top of Castle Hill.
Well connected to Pest via public transport, this district is the ideal base for those wanting a unique stay. Popular during the day but peaceful at night, this district is a relaxing oasis in the city. Enjoy the city’s top attractions, great restaurants, and panoramic views right on your doorstep.
Best Airbnb in Várkerület: Centrally located apartment for 2 or 4
Located seconds away from the UNESCO World Heritage Site and the Budapest Terez Korut, this Airbnb in Budapest is perfect for anyone visiting for the first time. It’s also close to restaurants, bars, shops, and public transport.
The apartment comes with a fully equipped kitchen, wifi, and air-con – so you can enjoy a comfortable stay in the heart of the city.
Best Hostel in Várkerület: Shantee House
This quirky hostel in Budapest’s Castle District is close to local attractions as well as public transport so you can travel further afield. Private and dorm rooms are available – but the highlight is the Mongolian Yurt-tent which provides comfortable accommodation during the summer months. The hostel provides a full kitchen, free wifi, and hot drinks, and is pet-friendly upon request. A perfect all-rounder!
Best Hotel in Várkerület: Buda Castle Fashion Hotel
Just steps from Buda Castle, this four-star Budapest hotel offers guests stylish and spacious rooms equipped with plasma TVs, bottled water, and free wifi. Enjoy a delicious meal at the hotel restaurant or nightcap in the chic lounge bar. For a luxurious stay in the Castle District, this is the place for you.
Best Hotel in Várkerület: Boutique Hotel Victoria Budapest
On the shores of the Danube, this delightful boutique hotel has stunning views of the river and Pest. The city’s top attractions, including Buda Castle and the Chain Bridge, are just a short walk away. Modern and stylish, this hotel boasts a day spa, sauna and fitness center, and massage service, ideal for unwinding after a day of adventures.
Things to See and Do in Várkerület
- Marvel at the neo-Gothic and neo-Romanesque architecture of Fisherman’s Bastion. Walk along the terrace and take in the amazing views of the Danube and Pest.
- Wander throughout Buda Castle, the Hungarian Royal Palace which is home to the National Gallery and Budapest History Museum.
- Climb (or drive) to the top of Gellért Hill and enjoy panoramic views of the city.
- Pay tribute to those who sacrificed their lives for independence at the Liberty Statue.
- Explore the Citadel, a 19th-century fortification that sits atop Gellért Hill.
- Warm up with a cup of coffee at Ruszwurm coffeehouse, one of the oldest cafes in Budapest.
- See the intricate detail and curious architecture of Matthias Church.
- Explore the Hospital in the Rock Nuclear Bunker, a World War II hospital situated in the caverns under Buda Castle. Now a museum, it features waxwork re-creations and authentic equipment.
- Soak in Rudas Baths or Gellert Baths and feel relaxed and rejuvenated after a long day of sightseeing.
- Take the ram over to Margaret Island for a picnic.
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View on Osprey View on REI2. District VI / Terézváros – Where to Stay in Budapest on a Budget
District VI, Terézváros, is one of the smallest yet most densely populated neighbourhoods in Budapest. Located on the Pest side of the Danube, this lively district is a hub of excitement and activity.
From backpacker hostels to boutique hotels in Budapest, there’s something for travellers of all styles and budgets here. If you’re trying to cut costs down in Budapest, though, this is where you’ll find a bunch of the budget gems!
Best Airbnb in Terézváros: Cozy Home for 4
This apartment located in the city centre has two bedrooms sleeping up to four guests. It has a living room, kitchen, and bathroom with all the essentials. The best thing about this apartment is its location. It’s close to some of the best places to visit in Budapest, including St Stephen’s Basilica, Chain Bridge, Vörösmarty square, and the Parliament.
Best Hotel in Terézváros: 12 Revay Hotel
Modern and spacious, 12 Revay Hotel is one of the best value hotels in Budapest. Surrounded by bars, shops, and restaurants, this hotel is conveniently located near Terézváros’ top attractions.
With 56 stylishly decorated rooms, this three-star hotel offers guests a comfortable and relaxing base in the heart of the city.
Best Hotel in Terézváros: Star Inn Hotel Budapest Centrum by Comfort
Rest and recharge after a day of sightseeing at the Star Inn Hotel Budapest. Located in the Terézváros district, this three-star hotel is within walking distance of Heroes Square and the House of Terror.
Guests can relax in the garden or enjoy a unique meal at the on-site restaurant. The hotel also offers a continental breakfast each morning, and there are plenty of cafes nearby.
Best Hostel in Terézváros: Good Vibe Hostel
This hostel in Budapest is close to the city centre and local amenities. This well-equipped hostel comes with everything you might possibly need, this hostel has private and shared accommodation options available.
Good Vibe Hostel is one of our favourites in Budapest but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.
Things to See and Do in Terézváros
- Dive deep into Hungary’s communist and fascist history at the House of Terror Museum.
- Enjoy a cosy atmosphere and great cocktails at Tuk Tuk Bar.
- Wander along the iconic Andrassy Avenue, a UNESCO World Heritage Site.
- Dine on a delicious dishes and a variety of cuisines at an affordable price at Vakvarjú Restaurant.
- Savour that first sip of coffee and a stellar pastry at Bite Bakery Café.
- Get back to nature and take a relaxing stroll through Városliget, one of the largest public parks in the city.
- Stand at the centre of Heroes Square, a massive statue complex featuring the Seven Chieftains of the Magyars and other iconic Hungarian leaders.
- See works of art by local artists at abc Galéria.
- Kick back and enjoy a pint at Kertem, an outdoor beer garden with a lively atmosphere.
- Visit all the best pubs and bars by taking a free pub crawl tour of Budapest.
- Check out a show at the Hungarian State Opera House.
- Walk up to city park and check out the Vajdahunyad Castle and world-famous Széchenyi fürd? thermal bath.
- Walk over to St Stephen’s Basilica and head up to the top of the dome for panoramic views of the Buda side.
3. District VII / Erzsébetváros – Where to Stay in Budapest for Nightlife
Budapest is one of the best party cities in Europe – and the smallest district in Budapest, District VII Erzsébetváros packs a punch. As the city’s historic Jewish Quarter, this central neighbourhood is home to a number of heritage and religious sites, including several notable synagogues.
Erzsébetváros is also the best area to stay in Budapest for nightlife thanks to its trendy bars, vibrant clubs, and rustic street food. If you’re looking for a great night out in Budapest, Erzsébetváros is the place to be.
Best Hostel in Erzsébetváros: Hostel One Budapest
Keep the good vibes going all day long at Hostel One, a lively and social party hostel in Budapest. Surrounded by ruin bars, clubs, and restaurants, this hostel is within walking distance of Budapest’s best nightlife spots. Enjoy clean and comfortable dorms and a fun atmosphere at this conveniently located hostel.
Best Hotel in Erzsébetváros: Continental Hotel Budapest
Enjoy four-star accommodation in the heart of Budapest’s party district at the Continental Hotel Budapest. Featuring a relaxing wellness centre, guests can rest up after a night on the town in the sauna or by taking a dip in the indoor/outdoor pool. Each spacious room features modern décor, A/C, a mini-bar, and on-demand movies – ideal for the morning after a big night.
Best Hotel in Erzsébetváros: Queen’s Court Hotel & Residence
The Queen’s Court Hotel & Residence is a five-star property in the Erzsébetváros neighbourhood. Surrounded by restaurants and bars, this luxurious hotel is at the heart of Budapest’s nightlife scene. Enjoy a drink at the bar before a night on the town, and make sure to line your stomach at one of the nearby restaurants!
Best Airbnb in Erzsébetváros: Newly renovated boutique apartment
This stylishly renovated flat with a Parisian feel is centrally located near quirky bakeries and a hand-crafted chocolate artisan. The metro station is 150m away, taking you straight to the Ruin Pub Zone. The apartment has a self-check-in and every amenity you can possibly need for your stay, including a washer and dryer.
Newly renovated boutique apartment is one of our favourites in Budapest but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.
Things to See and Do in Erzsébetváros
- Enjoy chic cocktails and stunning décor at the iconic New York Palace.
- Visit the extraordinary Dohany Street Synagogue, the largest synagogue in Europe, and second largest in the world.
- Sip sophisticated cocktails at Jardin Bar.
- Drink, dance, and laugh the night away at Doboz, an open-air ruin bar where the music’s great and the drinks are cheap.
- Spend a night at Szimpla Kert. Built in a former factory this converted open-air space was the first ruin bar in the city.
- Savour custom cocktails and a charming atmosphere at Warmup Bar.
- Enjoy urbane cocktails at Bar Pharma, a stylish speakeasy in the city.
- Dance the night away at Instant, a forest themed ruin bar with six floors of great drinks and music to choose from.
- Wander the streets and look at the massive murals and street art that bring life and colour to once mundane grey buildings.
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Grab an eSIM!4. District VIII / Józsefváros – Coolest Area to Stay in Budapest
A few years ago, travellers would have avoided Budapest’s District VIII Józsefváros. Rough and dangerous, it wasn’t considered a trip-worthy place. Today, thanks to an influx of stylish bars, trendy restaurants, and independent boutiques, Józsefváros has become one of the hottest neighbourhoods in the city.
Popular with students, Józsefváros is a lively and social neighbourhood. Here you’ll find a number of great ruin bars, casual eateries, hip shops, and stylish galleries. It’s come a long way, and despite its past is perfectly safe to visit.
Best Airbnb in Józsefváros: 19th Century Home in Budapest City Centre
Built in 1890, this traditional city house has its own quiet courtyard. The apartment retains many of the original 19th Century architectural features such as the 4-meter high molded ceiling, decorated door panels, and large glass doors.
This unique accommodation has a gallery and a kitchenette with all the necessary essentials. Guests can also enjoy wall and floor heating, and complimentary Wifi.
Best Hostel in Józsefváros: Hipster Hostel
Tucked away in Józsefváros, this hip hostel is within walking distance of bars, restaurants, and public transport. This hostel has private and shared accommodation and offers different styles of rooms, perfect for singles, couples, and groups. Guests can enjoy free wifi, comfortable beds, and a social atmosphere.
Best Hotel in Józsefváros: Eurostars Danube Budapest
Set at the centre of Budapest, this four-star hotel is close to the city’s main attractions and hottest bars. Each room has free wifi, a mini-bar, and a flat-screen TV. Guests can unwind in the stylish lounge or on-site restaurants at the end of an exciting day.
Best Hotel in Józsefváros: Bo33 Hotel Family & Suites
Modern and spacious, this hotel is a relaxing hideaway in one of Budapest’s most exciting districts. Guests can relax and recover after a night on the town on the rooftop terrace or in the sauna. Enjoy daily breakfast and an on-site bar at this stylish four-star hotel.
Things to See and Do in Józsefváros
- Take a deep dive into Hungarian history at the Hungarian National Museum.
- Enjoy a lively atmosphere and delicious food at Zappa Bistro.
- Dance the night away at Trafik, where DJs spin the best music until the early morning.
- Browse the racks at Iguana, a high-end thrift shop where you can often find designer labels.
- Feast on hearty Hungarian fare at Darsham Udvar Etterem.
- Dine on Eastern-influenced dishes at the rustic and chic Café Csiga.
- Enjoy a great mix of Hungarian and Jewish cuisines at Fülemüle.
- Rustic and charming, the courtyard of Gondozo Kert is great for late-night drinks.
- Drink under the star on the rooftop terrace of Corvinteto, a ruin bar built in a former supermarket.
- Party late into the night at the Corvin Club, one of Budapest’s most iconic nightclubs.
- Stop and smell the roses, flora and fauna at the Botanical Garden.
- Walk over to city park and see the Vajdahunyad Castle and bath in the world-famous Széchenyi fürd? thermal bath.
- Catch a show at the Hungarian State Opera House.
5. District V / Belváros (Pest) – Where to Stay in Budapest for First Timers and Families
Located on the eastern edge of the River Danube, Belváros or Pest is the downtown District V and the heart of the city. This is where you’ll find a variety of historic and cultural attractions, including the Parliament Building, Chain Bridge, and the Central Market Hall.
Well connected to neighbourhoods throughout the city, Belváros is a great base for families or first-timers travelling to Budapest. The area is within walking distance of many top attractions, so little legs won’t get too tired while exploring this part of the city.
Best Airbnb in Belváros: Vintage style downtown family home
This vintage downtown house is a unique and bright place located in the heart of Budapest at the end of the Jewish district. It has a fully equipped kitchen and bathroom, and it is suitable for small families that want to explore Budapest with a quiet place to call home.
Best Hostel in Belváros: Pal’s Hostel
Pal’s Hostel offers private rooms at an affordable rate, making it ideal for families with older children visiting the area. The award-winning hostel is within walking distance of the best things to see in Budapest, including the famous Chain Bridge. Pal’s also sells the Budapest card and can help you organise all your activities and excursions.
Best Hotel in Belváros: SasOne Rooms
Family rooms in the SeasOne are designed for groups of three, comprising one double and one sofa-bed. Each room has a private bathroom and internet access, and breakfast is included in the price. Just 200m from St Stephen’s Basilica and public transport connections, this hotel provides stress-free accommodation for small families exploring Budapest.
Best Hotel in Belváros: Iberostar Grand Hotel Budapest
Luxurious and refined, the Iberostar Grand Hotel Budapest is the best hotel in the city. Located in the Belváros district, this five-star hotel has spacious rooms equipped with a variety of modern amenities. Enjoy a relaxing steam bath or drinks on the terrace after a long day of exploring Pest.
Iberostar Grand Hotel Budapest is one of our favourites in Budapest but they’re not taking guests right now. We’re not sure if they’re closed for good but we hope they’ll come back soon.
Things to See and Do in Belváros
- Visit the statue of Imre Nagy, a communist Hungarian politician and leader of the Hungarian Revolution against the Soviets.
- Pack a picnic and spend a relaxing afternoon on Margaret Island, a lush green space located between on the Danube.
- Stand in awe at St Stephen’s Basilica, a Roman Catholic basilica and architectural masterpiece.
- Marvel at the impressive Hungarian Parliament building.
- See the Shoes on the Danube bronze statues that serve as a memorial for 3,500 people who were killed by fascist Arrow Cross militiamen during World War II.
- Take a night cruise along the Danube and see the city’s most iconic sights illuminated and glowing.
- Walk across the Chain Bridge that connected Buda and Pest, and one of the most iconic locations in the city.
- Sample delicious sweets, treats and authentic Hungarian fare at the Central Market Hall.
- Indulge in a delicious gelato at Gelarto Rosa where the scoops are sculpted into the shape of a flower.
FAQ about Finding a Place to Stay in Budapest
Here’s what people usually ask me about the areas of Budapest and where to stay.
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Final Thoughts on Where to Stay in Budapest
Budapest is full of charm, history, culture, and nightlife – and has something to suit every traveler. With so much to see and do in Budapest, you’ll be sure to have an amazing time wherever you stay in this stunning city.
If you’re still undecided, I highly recommend Good Vibe Hostel as one of the best hostels in Budapest. If you’re looking for something more luxurious, you can’t go wrong with Iberostar Grand Hotel!
Did this help you decide on where to stay in Budapest? Let me know in the comments below!
And for transparency’s sake, please know that some of the links in our content are affiliate links. That means that if you book your accommodation, buy your gear, or sort your insurance through our link, we earn a small commission (at no extra cost to you). That said, we only link to the gear we trust and never recommend services we don’t believe are up to scratch. Again, thank you!
