Where to Stay in Budapest - A Local’s Neighborhood Guide
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Budapest, the capital of Hungary (and my home city!), is divided by the Danube River into two distinct areas: Buda and Pest. Between the two, you’ll find a blend of historic landmarks, architectural curiosities, markets, green spaces, and lively nightlife, making Budapest a city that really does offer something for everyone, especially visitors interested in modern urban life.
Buda, on the west bank of the river, offers a tranquil and historic atmosphere, and this area is known for its hills, medieval streets, and vistas overlooking the city. You’ll find many famous sights on this side of the river, like Buda Castle, Fisherman's Bastion, and Matthias Church.
In contrast, the eastern bank, Pest, is the city's bustling urban hub. Home to the iconic Hungarian Parliament Building and grand boulevards like Andrássy Avenue, Pest is always busy and filled with energy. This area is known for its nightlife, diverse culinary scene, and cultural offerings.
Now, which side and neighborhood is the right base for you will depend on what you’re looking for, so to help you decide, I’ve provided a detailed overview of the 4 principal neighborhoods that I typically recommend to visitors, along with a few other options which are a bit less central but offer very different (typically more local) experiences.
Read on below for help choosing the right neighborhood for you.
Table of Contents
Budapest planning cheatsheet
Plan your itinerary with expert advice
- Book a Budapest travel consultation with a local expert
My favorite hotels in Budapest
- Matild Palace - 5-star luxury in the historic center. $250/night
- Hotel Moments - chic and stylish on Andrássy Avenue. $200/night
- Boutique Hotel Victoria - riverfront views in the Castle District. $150/night
- Casati Hotel - great value near the Opera House. $130/night
- Three Corners Downtown - modern and well-located for sightseeing. $120/night
Guided tours and activities
- Private guided tours with Attila (my favorite local guide)
- Castle District walking tour (small group)
- Evening Danube River Cruise
- City center bike tour (with e-bikes)
- Downtown Pest & the Jewish Quarter
How to get around
- Car rentals with DiscoverCars
- Train tickets from MÁV
- Bus and metro routes at BKK
- Taxis & rideshares with Uber and Bolt
- Airport transfers from Welcome Pickups
Overview of the city's layout
A map of Budapest’s districts, with the Danube River cutting through the city. Photo: Droo, CC BY-SA 4.0, via Wikimedia Commons
Before we delve into my recommended neighborhoods, I just want to quickly explain how Budapest is organized.
The first thing you need to know is that Budapest is split in two by the Danube River, with the western half of the city known as Buda and the eastern half called Pest. Most "where to stay” guides only break the city down this far, telling you to just choose between Buda or Pest. But I think that's an oversimplification because within each half of the city you have very distinct neighborhoods and you need to consider more than just which side of the river to stay on.
Officially, the city is divided into 23 numbered districts, similar to the Arrondissements of Paris. The most central districts (typically those lowest in number) all have portions that run along the Danube, and in general, the closer you stay to the river the more central you’ll be. Higher numbered districts are usually far from the city center and are areas you can largely ignore when choosing your base.
Beyond their numeric designations, be aware that these districts also have their own names, which typically end with “város” (which means “town”) and sometimes begin with the name of an emperor from the Austro-Hungarian empire. That won't help you at all, but it's a neat little fact!
As you wander around town, you’ll often see the district number and the neighborhood name on the street signs, which makes knowing the general layout and names of the neighborhoods very helpful for getting your bearings while exploring.
The west side of the city (Buda) is home to the Castle District, which is filled with historic sights, older architecture, a few famous spas, and an overall quieter and more residential atmosphere. The east side of the city (Pest), includes the modern downtown, the former Jewish ghetto, and just about everywhere else you're likely to want to visit while in Budapest (Hungarian Parliament, St. Stephen's basilica, Heroes’ Square, etc.). While Buda is very picturesque and quaint, Pest is much busier, more cosmopolitan, and is characterized by grand 19th century architecture.
Now that you have a good "lay of the land”, let's take a look at my recommended neighborhoods.
And for more info on the city, have a look at my Budapest city guide and 3-day Budapest itinerary.
Overview of my 5 recommended neighborhoods
Budapest is a very compact city and it also has an excellent and comprehensive public transit system (buses, trams, subways), so as long as you choose somewhere relatively central, regardless of what district it’s in, you’ll always be able to get around quickly and conveniently.
Of course, if it’s your first time here, it’s more pleasant to be able to walk to the main sights rather than relying on public transit, so I think it’s best to stay in the heart of the city, even if that inevitably means that you’ll be in an at least somewhat touristy area.
As I said above, Buda is quieter, but has a few major sights and offers plenty of places to relax, like in its parks, forests, hiking spots, and thermal baths, some of which date back to the Ottoman occupation during the 16th century.
Pest, on the other hand, feels like a lively and modern European capital and is always buzzing. It's a good option if, in addition to more traditional sightseeing, you’re also planning to enjoy Budapest's cultural scene (concerts, opera, performances, museums, etc.) or looking to explore the trendy ruin pubs of the Jewish Quarter.
With that in mind, here are the 5 neighborhoods that I recommend for most visitors:
1. Belváros and Lipótváros - District V (red on the map above)
Located in Pest and as central as it gets, this is the ideal base for any first-time visitor who wants to be within easy walking distance of the city’s iconic sights, many of which are right in the neighborhood. It’s very touristy though, so don’t expect to be “immersed in local life”.
2. Terézváros - Distict VI (blue above)
Centered along the city’s grandest street, Andrassy Avenue, which is lined with gorgeous and grand old buildings, this area is a cultural hub where you'll find the Opera house, various top museums, and a clutch of theaters. It's an upscale neighborhood, so is home to some of the city's best hotels, restaurants, and shops. It's central and convenient, but far less touristy than District V.
3. Erzsébetváros - District VII - Jewish Quarter (yellow above)
The former Jewish Quarter is Budapest’s nightlife hub and a perpetually busy area. It’s where you’ll find the famous ruin bars, lots of great street art, some very good restaurants, and a mixed bag of beautifully restored and somewhat neglected grand, Austro-Hungarian architecture. It's very convenient for getting to the main sights, but it's very touristy and is especially popular with young visitors who are in town to party, meaning it stays quite loud until pretty late. Even so, the noise can be avoided so long as you choose a hotel away from the bars.
4. Buda Castle District - District I (black above)
Over in Buda, this is a historic and architecturally gorgeous neighborhood that lies right on the banks of the Danube. While a popular area to visit in the day time, it's far quieter than the three preceding areas, particularly at nighttime when it can feel kind of empty. Although you'll probably spend most of your time outside of the neighborhood, there are some very nice hotels here and it makes for a tranquil and atmospheric base.
5. Újbuda - District XI (purple above)
Also over in Buda, the XI district is a really lively, youthful, and fun area that feels (and is) much more local than anywhere else that I’ve recommended in this guide. It’s not quite as central or convenient for getting to the big sights, but it’s still nearby and is a very hip spot with tons of good restaurants, bars, cafes, galleries, etc. It’s much more affordable than the more touristy areas too.
Map of my suggested hotels
For anyone who’s just looking for a quick collection of suggested hotels and doesn’t want to read through my individual neighborhood overviews below, here’s a map of Budapest that shows all 19 hotels I’ve recommended throughout this guide.
These are spread across the 5 neighborhoods that I’ve suggested that you stay in as well and the hotels here encompass a wide range of star levels and nightly prices, so everyone should be able to find something to suit their preferences.
And if you want to know more about the hotels, you’ll find quick descriptions of each of them in the “Where to stay” sections of the relevant neighborhood overviews below.
Happy (hotel) hunting!
1. Belváros and Lipótváros (District V)
Best for: First-time visitors on a short stay
Pros: Central, great public transport links, walkable to all the sights, beautiful architecture
Cons: Touristy, busy
St. Stephen’s Basilica
Along the riverfront, looking at the Hungarian Parliament building
The Vigado Concert Hall. Photo: Thaler, CC BY-SA 3.0, via Wikimedia Commons. Cropped
Elizabeth Square in District V. Photo: VinceB, CC BY-SA 3.0, via Wikimedia Commons
Belváros (Inner City) and Lipótváros (Leopold’s Town) are two sub-districts that together form District V in downtown Pest. You can’t get more central than here, as almost everything in the city is within a 20-minute walk, making it an ideal base for first-time visitors, especially anyone with only a few days in town.
This part of town is home to major attractions like St. Stephen’s Basilica, the Hungarian Parliament Building, and the Shoes on the Danube Bank memorial, as well as many lesser-known buildings that are incredibly beautiful, but easy to miss if you don’t know to look for them. I’ve wandered these streets often, and even today, I still always find hidden details that I’ve missed over the years.
Because it's densely packed, you can get a lot of your sightseeing done on foot and will rarely need to take the metro or a tram. You also don't need much sense of direction as you can just wander around and will inevitably stumble upon some of the city's most iconic monuments. You're even close enough to be able to walk across the chain bridge and into the Castle District.
The scale of the architecture here is impressive and the stately buildings and wide boulevards impart a sense of grandeur that is fitting for the former home of the Austro-Hungarian empire.
In terms of transport, this is almost certainly the best connected part of the city. There are metro stops almost every few blocks as well as trams and buses. The city's main metro terminus is here - Deak Ferenc Ter - where 3 metro lines converge, meaning you can get to pretty anywhere in the city without needing to make a transfer. The airport bus also drops you off right here.
Although some parts are very touristy (I’m looking at you, Váci Street!), it's not overrun and most of the crowds are limited to the areas immediately surrounding the main sights. If you walk a few blocks away from the busy areas, it feels like a pretty normal city center, with a nice mix of workers, locals, and visitors. If you choose to stay here, I recommend picking a hotel a little bit away from the main sights so that you're not always surrounded by tourists.
There are also some nice squares and green spaces that I really like. Two favorites are the Károly Garden - a garden enclosed by intricate wrought iron fencing and gates that backs onto the Petőfi Literature Museum -and Egyetem Square, home to the ELTE University Law school and the baroque University Church. In the summer, I love to grab drinks with friends at Csendes Társ, a charming cafe that looks out onto the gardens.
The area is also a prime shopping destination with a mix of local Hungarian stores and international chains. I love the little stationary boutique BomoArt which sells handcrafted journals and notebooks, as well as Paloma, a design collective located in a hidden courtyard.
For foodies, I believe there is no better neighborhood in the city. That said, choosing restaurants here takes some research and consideration as there are quite a lot of tourist traps. The options range from international to traditional Hungarian and you even have a few Michelin-starred spots like Borkonyha Winekitchen and Salt. There are also a number of classic cafes like Café Gerbeaud and Parisi Passage which offer traditional Hungarian pastries and coffee in gorgeous settings. A few personal favorite restaurants are Szimply and Cafe Kör.
If it's not clear, I genuinely like this area and I think it's a good choice for lots of visitors coming to the city for their first visit. Anyone with limited time would do well to stay here as well as others who simply prioritize beautiful surroundings and proximity to the sights. People looking for a local and authentic atmosphere or anyone who wants to stay somewhere quiet and peaceful should probably look elsewhere.
Where to stay
Hotel Aria Budapest - I definitely felt the wow factor when I walked into the Aria Hotel Budapest for the first time, with its unique and quirky musical-themed decor that’s very design-forward but also luxurious. The rooftop High Note SkyBar provides breathtaking views of St. Stephen’s Basilica and the cityscape. $400 USD per night.
Matild Palace - This 5-star UNESCO designated hotel is housed in the beautifully restored art nouveau Matild Palace and oozes old world charm - you’ll legitimately gawk at the building when you arrive. The ornate interior holds up to the expectations, with refined touches everywhere. Rooms are spacious and elegantly decorated, but in a very cozy, inviting way. The Duchess, the hotel’s rooftop bar is one of my favorite in the city - the views at sunset are unbelievable. $275 USD per night.
Hotel President - The rooftop terrace from the Hotel President offers one of my favorite views in town, as it overlooks the green and yellow rooftop of the Hungarian Postal Savings Bank designed by Hungary’s answer to Gaudí, Ödön Lechner. It’s a stylish 4-star hotel known for its Art Deco-inspired interiors and modern comforts. It’s situated near the Hungarian Parliament Building and offers guests easy access to some of Budapest’s most notable sites. $150 USD per night.
Prestige Hotel Budapest - When you’re visiting the former capital of the Austro-Hungarian empire, it just makes sense to live like royalty for a few days, and this hotel most definitely offers that (but without breaking the bank!). Right next to the river and the Chain Bridge, the location is great and the entire hotel, from the common areas to guest rooms, is opulent, luxurious, and elegant. $130 USD per night.
Three Corners Downtown Hotel - Less than a 5-minute walk from St. Stephen’s Basilica, the location of this 4-star hotel could not be better for sightseeing. Inside, the rooms are spacious and very modern, with design-forward themes that really brighten things up. A rather good buffet breakfast is included with each booking. $100 USD per night.
2. Terézváros (District VI)
Best for: Travelers looking for an upscale atmosphere, anyone interested in culture and art
Pros: Grand and beautiful, good dining and shopping, close to the sights, excellent hotels
Cons: Leans expensive, will need to use the metro/cabs sometimes
A stretch of Andrassy Avenue. Photo: Random photos 1989, CC BY-SA 4.0, via Wikimedia Commons
The Hungarian State Opera House. Photo: PDXdj at English Wikipedia, CC BY-SA 3.0, via Wikimedia Commons. Cropped
Looking down Andrassy Avenue to Heroes’ Square. Photo: Random photos 1989, CC BY-SA 4.0, via Wikimedia Commons
The roof of the Ethnographic Museum in City Park
Terézváros (Theresa Town), also known as District VI, is dominated by the grand Andrássy Avenue, Budapest's principal thoroughfare and a street that's often compared to Paris’s Champs-Élysées. The Avenue begins just across the road from St Stephen’s Basilica and runs up to Heroes’ Square. The neighborhood unfolds along both sides of the avenue.
With elegant mansions, chic boutiques, exclusive restaurants, and high-end hotels, this is one of Budapest's most refined areas. It's very touristy right along Andrassy Avenue, but as you move off into the side streets it becomes more local and very pleasant. Lots of wealthy locals have apartments here, so it's a real neighborhood with plenty of the necessities for everyday life, everything just tends to be rather upscale.
If you explore the side streets, you'll encounter lots of gorgeous art nouveau buildings, some beautifully renovated with others in varying states of crumbling decay. You’ll also find a selection of some of the city’s best restaurants, bars, and cafes, many housed in lovely old buildings. They are often on the pricier side, but are excellent as they’re geared towards locals and not tourists.
On Nagymező Street, close to the Hungarian State Opera House, you’ll find an abundance of theaters which lend the nickname “Budapest Broadway” to this part of town.
At the far end of the district, which is marked by Heroes’ Square, you have City Park, the biggest and most pleasant green space in Budapest. The Szechenyi Baths and various prominent museums are in or around it, so there are tons of recreational and cultural opportunities.
When choosing your hotel, know that the neighborhood changes pretty significantly between its lower (close to downtown) and upper parts. The dividing line is the intersection where Andrássy Avenue and Grand Boulevard (also called Teréz Krt) meet, forming an area known as “Oktogon”.
The area closer to downtown is more convenient from a logistics standpoint (you can walk to the sights, the riverfront, and the ruin pubs of the Jewish Quarter in just 15-30 minutes), but comes with the tradeoff of being more tourist-oriented. Once you continue past Oktogon and towards the park, the avenue becomes quieter and more residential, with grand apartment blocks and villas housing foreign embassies. I much prefer the atmosphere closer to the park (and very much recommend it to anyone traveling with kids), but if you stay there you'll need to accept using the metro and/or calling the occasional cab.
In general, I think staying along Andrassy Avenue is a good choice for just about everyone. It offers many of the benefits of downtown, but with a slightly more local feel. It's especially nice for visitors who want an upscale and elegant atmosphere. The only real downside is that you'll be a bit further from the sights, especially anything across the river.
Where to stay
W Budapest - W Budapest opened recently in the iconic Dreschler Palace, which once housed the former Ballet Insititute and lay abandoned for years till it reopened as this chic, contemporary hotel with cutting-edge design on the historic Andrássy Avenue (just across the street from the Hungarian State Opera). $350 USD per night.
Mystery Hotel Budapest - If you love wonder and surrealism, the Mystery Hotel Budapest is your place. Each room is meticulously themed, like the grand hall of the masonic temple where the restaurant and bar are found, with Egyptian-style frescoes and a chessboard floor. $200 USD per night.
Hotel Moments Budapest - Also on Andrássy Avenue, this hotel is a serene escape with its stylish rooms and relaxed, friendly atmosphere. The hotel’s location is ideal for exploring the Opera House and other cultural highlights, and it features a cozy bistro and a tranquil garden. $180 USD per night.
Hotel Oktogon Haggenmacher - Right next to the Oktogon metro stop, this is a well-located and affordable 4-star hotel in a beautiful historic building. The common areas are genuinely gorgeous - you’ll feel a little like royalty walking around them. The rooms themselves are very modern, if a bit small and somewhat spartan (very comfortable though). They do an excellent breakfast. $140 USD per night.
Three Corners Avenue Hotel - This is a recently opened hotel in a lovely historic building just a block off Andrássy Avenue and basically right across the street from the Opera House (the location is really ideal). The rooms are what I would call “stately”, while still being modern, spacious, and comfortable. It’s excellent value. $120 USD per night.
Casati Hotel - Just off of Andrássy Avenue and within a few minutes’ walk of many of the city’s main sights, this is a lovely boutique hotel that’s won a few awards recently. Rooms are spacious and stylishly designed (but in a fun way), and despite being in a historic building, everything has been nicely updated. $115 USD per night.
3. Erzsébetváros (District VII)
Best for: Travelers in their 20s and anyone looking to party, people who like a slightly grittier atmosphere
Pros: Great nightlife, close to downtown but feels residential, interesting mix of architecture
Cons: Can be loud, popular with young people (pro for them, con for the rest of us!)
Klauzál Square in District VII. Photo: Globetrotter19, CC BY-SA 3.0, via Wikimedia Commons
The Dohany Street Synagogue
Dob utca (street) running up the middle of the neighborhood. Photo: OsvátA, Public domain, via Wikimedia Commons
Mazrl Tov “ruin” bar near Klauzal Square. Photo: Nan Palmero from San Antonio, TX, USA, CC BY 2.0, via Wikimedia Commons
Erzsébetváros (Elizabeth Town) is also known as the Jewish Quarter and, more recently, the “Party Quarter". The majority of the city's famous Ruins Pubs are here and it's rightfully renowned for its energetic nightlife, eclectic bars, and thriving culinary scene (try Gettó Gulyás for Hungarian food and Bors Gasztrobár for street food).
The neighborhood has become a hub for street art over the years, and in addition to countless little works of art there are many huge murals on the sides of apartments blocks. The buildings here are grand and impressive like in District V, but they have not all been so meticulously maintained, which I think actually adds to the appeal. For me, this sense of faded glory marching on feels very authentically Budapest.
Today, the area is full of youthful energy and it’s especially popular with visitors in their 20s looking to party. Beginning in the evening, you'll find lots of people out bar hopping along with many pub crawls and bachelor parties. Although its ruin bars are the main draw, you can also find some curious countercultural hubs like Kisüzem, Vittula, and Fekete Kutya.
If the mention of rowdy nightlife and youthful revelers has you clutching your pearls and running for the hills, hear me out first! While there's definitely a party focus in some areas, this is a pretty big neighborhood and so long as you stay away from a few bar-heavy corners you'll find the surroundings pretty peaceful and quite nice. Much of the area is residential and you'll find regular people going about their daily lives, which I find pleasant.
For getting around the city, metro stops ring the border of the neighborhood, giving you access to the red, blue, and yellow lines, making it easy to get basically everywhere. You also have trams and buses on the main streets. Andrassy Avenue and downtown Pest are a 10-30 minute walk from most of the neighborhood. It's also right on the border with district VIII which is a very cool local area that is little explored by visitors and worth checking out.
Although it often just gets talked about for its pubs, this is a historic district with a complex and interesting past. From the mid-1800's through World War II a thriving Jewish community (the second largest in Europe) populated the area. In 1944, the fascist Arrow Cross Party turned it into the ghetto following Hitler’s orders, and Jews were enclosed with in, awaiting deportation. Although not much is here to commemorate this, keep an eye out for the memorial wall in a courtyard on Kiraly utca 15, which marks the former border of the enclosed ghetto. Two iconic synagogues - Dohany and Kazinczy - also remain and are open to visitors.
So, who should stay here? The obvious answer is people in their 20s and anyone with wrinkles on their face but who still feels like they're 20. It's the ideal base if you want to be near the party or are looking for a slightly grittier experience.
Where to stay
Corinthia Budapest - Spanning three gorgeous 19th century buildings, the Corinthia Budapest is a simply beautiful hotel with a history that reminds me of Wes Anderson’s The Grand Budapest Hotel. The world-class spa is often the main draw for visitors (it’s fabulous), but the rooms are great too. The hotel is a bit outside the party nucleus, so it's quiet at night. $160 USD per night.
Roombach Hotel Budapest Center - Roombach Hotel Budapest Center offers a cozy and contemporary stay in the middle of the action. This boutique hotel features stylish rooms with modern amenities and a friendly atmosphere. $90 USD per night.
Leonardo Boutique Hotel - This is a pleasant hotel in a more modern building, with comfortable rooms, many of which have balconies. The location is great for sightseeing as you’re walking distance to most places but are also right next to a transit hub, and across the street is an excellent shopping area (called the “Fashion Street”. $80 USD per night.
4. Buda Castle District (District I)
Best for: Older travelers, people who want a nice hotel in a charming area, anyone looking for peace and quiet
Pros: Historic and quaint architecture, some parts are pedestrianized, lots of nice hotels, a few major sights right in the area
Cons: Very touristy, very quiet at night, requires uphill/downhill walks to get anywhere
Buda Castle
Matthias Church, with its beautifully tiled roof
A cobbled street leading up to Matthias Church on Castle Hill
Found west of the river in Buda on a hill rising above the Danube, this is a historic and architecturally gorgeous neighborhood that is far quieter than the three Pest-side areas mentioned above. Parts are very touristy and it can be pretty dead at night, but it's also exceedingly atmospheric.
It’s perhaps the most picturesque part of the city, with narrow, winding cobblestone streets lined with pastel-colored baroque houses and hidden medieval arches. It’s also the part of the city I find has some of the best views, especially from the famous Fisherman’s Bastion.
This is Budapest's most historic neighborhood and it is incredibly scenic. You have iconic sights like Matthias Church, Buda Castle, the Rudas Baths, and Gellert Hill. Unknown to most visitors, the hill atop which the district spreads is full of caves (this is why big tour buses are not allowed up to the top), and you can visit them with a guide or explore the Buda Labyrinth and the subterranean “Hospital in the Rock”.
Unlike central Pest, the Castle District is extremely quiet at night. Dominated by monuments and historic landmarks, few locals live here, so once the tourists have departed for the day, almost no one remains. Everything here - restaurants included - shuts early, so you'll have to look elsewhere for dinner, drinks, or evening entertainment.
While it can feel almost eerily empty at night, the streets - lit by the orange glow of wrought iron street lamps - are extremely atmospheric. Wandering through the area after dark feels like having stepped back in time. If you stay here, you'll sometimes feel like you have the neighborhood all to yourself, especially early in the morning and late in the evening.
It's also worth mentioning that it's not a total ghost town at night as up on Castle Hill you do have a handful of excellent high-end restaurants that stay open late. Places like Pierrot, Magyar 21, Pest-Buda, and Budavári Rétesvár (a hole-in-the-wall famous for its strudels) are really quite good, but they of course cater exclusively to tourists, so if you're after a local vibe, forget about it.
Public transport here is limited to the lower section of the neighborhood along the riverfront where you have stops for the metro as well as a few trams and buses. When you want to get into Pest, you can walk across the Chain Bridge (about 30 minutes from the top of the hill) or hop a quick and inexpensive taxi ride.
This is not a great neighborhood for people looking for a bustling atmosphere or a local and residential vibe, but it's ideal for visitors with just a day or two who want to stay somewhere especially atmospheric and pretty. Older travelers, people whose nights will probably be ending after dinner, and anyone who just really wants somewhere peaceful and quiet will do well here.
Where to stay
Milford Suites - Just below Castle Hill, but also a quick walk into downtown Pest, the rooms here are like little apartments with kitchens and seating areas. They’re fairly basic, but comfortable. It’s ideal for families. $100 USD per night.
Boutique Hotel Victoria Budapest - Sitting at the foot of the hill leading up to Buda Castle and directly beside the Danube River, the main reason to stay is the incredible river views out of each room’s huge windows. Waking up and going to sleep looking out over the river and Pest is just incredible. Rooms are spacious and pleasant, breakfast is good, and there’s a sauna as well. $150 USD per night.
Baltazár Budapest - Baltazár Budapest is a family-run boutique hotel with a vibe that mixes bohemian and chic. Located just a short walk from Buda Castle and Fisherman’s Bastion, it features individually designed rooms with contemporary and vintage decor. $175 USD per night.
Hilton Budapest - The Hilton Budapest, situated right next to Fisherman’s Bastion, offers impressive views of the Danube and the city skyline, and the hotel combines modern amenities with historical surroundings, as it is built into a medieval Dominican monastery but has a distinctly 1970s architecture. $175 USD per night.
Pest-Buda Hotel - I find this boutique hotel charming, with its stylish rooms featuring exposed brick walls and vintage furnishings. Try the on-site bistro, which serves traditional Hungarian cuisine with a modern twist. The hotel’s intimate setting and personalized service make it a perfect choice for couples and families. $200 USD per night.
5. Újbuda (District XI)
Best for: Returning visitors, people with more than a few days, travelers who want a local atmosphere
Pros: Not touristy, residential but lively, good dining
Cons: Far from the main sights, no hotels, mediocre public transit connections
A stretch of Bartók Béla Boulevard. Photo: Random photos 1989, CC BY-SA 4.0, via Wikimedia Commons
Lovely Lake Feneketlen. Photo: Takkk, CC BY-SA 3.0, via Wikimedia Commons. Cropped
The Kopaszi Dam area in Újbuda. Photo: Sztudva Gyöngyi, CC BY-SA 3.0, via Wikimedia Commons. Cropped
Building K of the Budapest University of Technology. Photo: Varius, CC BY-SA 3.0, via Wikimedia Commons
On the Buda side of town and just to the south of all the attractions on Castle Hill, Újbuda (which means New Buda) is a really fun local area that I think makes a great base for anyone who wants to experience a more authentic side of Budapest while still staying somewhere relatively close to the city center and main attractions.
There are no big sights here, so this isn’t where you’ll be doing your sightseeing, but it’s a pleasant, lively neighborhood and is unquestionably the type of area you’d want to live in if you were moving to Budapest rather than just visiting.
Since you'll probably be spending the better part of every day in rather touristy parts of the city, it’s an absolute pleasure to start and end your days here amongst locals. You'll get to grab breakfast at nice local bakeries and have dinner and drinks at places that cater to residents and not tourists. This means that not only do you get a real window into local life, but also better prices and much better food!
The neighborhood stretches quite far away from the river, so you’ll want to stay relatively close to the waterfront, and my recommendation would be to find an accommodation on or near Bartók Béla Boulevard, the district’s main street which is absolutely filled with bars, restaurants, coffee shops, and independent galleries and neat shops.
The lower part of the district (down closer to the river) is distinctly youthful, in large part because the main campus of the Budapest University of Technology and Economics is here, bringing in students from all over the country. The University’s grounds are leafy and lovely, so you should certainly take a stroll through them, and you’ll also be pleased to know that the big student population means you’ll find lots of cheap and casual eateries, which are often quite good.
Moving up along Bartók Béla Boulevard deeper into the neighborhood (away from the river), there’s an abundance of very good restaurants, bars, bakeries, and coffee shops, as well as galleries and little venues that put on frequent events, and lots of shops and boutiques. There’s always something going on and the area stays lively until pretty late, so you’ll have plenty of options for nightlife.
For getting around, you have two metro stops at either end of Bartók Béla Boulevard, as well as lots of buses and trams. While you could walk into the Castle District, most of Pest is too far to visit on foot, so you will need to plan on using transport and/or taxis and ubers to get into the city center.
I think it's readily apparent, but I really like this area. If I were visiting Budapest, it's where I'd stay and it's where I want to tell you to stay. But… I know that is just won't make sense for most visitors, especially those with limited time or anyone coming for a first visit. It's far from the sights, not super well connected, doesn't cater to tourists, and there are no hotels. That said, it's great for repeat visitors, anyone with more time, and people looking for an actually authentic atmosphere away from the crowds.
Where to stay
As far as I know, there are no hotels in the neighborhood, so you’ll need to look at AirBnB or other short-term apartment rental platforms.
Apartment rentals - The link to the left will take you to a selection of nice apartments in Ujbuda that are available on Booking.com
Other neighborhoods to consider
If you’re only staying in Budapest for a few days, staying close to the center is the ideal option for you, as you’ll be right next door to all the sights, restaurants, and bars you’re looking to fit in on your trip.
However, if you’d like to try something a little different and live more like a local, you might want to consider the following neighborhoods as a place to stay.
Újlipótváros (District XIII)
The waterfront in Újlipótváros. Photo: Globetrotter19, CC BY-SA 3.0, via Wikimedia Commons
Újlipótváros (New Leopold Town) is a residential neighborhood known for its Art Deco and Bauhaus architecture. It’s a vibrant area packed with cafes and restaurants. It’s close to Margaret Island and Lehel Market.
The area around Pozsonyi Street is the liveliest part of the district, with cute bakeries and coffee shops as well as excellent restaurants and bistros – try Sarki Fűszeres, a deli with excellent cheeses and cold cuts, grab some Middle Eastern food at Babka, or get some traditional Hungarian food at Kiskakkuk Vendéglő or the Pozsonyi Kisvendéglő –.
Szent István Park, with its rose garden, offers a lovely green spot to relax.
Palace District (District VIII)
A square/street leading up to the Ervin Szabo library in the Palace District. Photo: Perfectmiss at Hungarian Wikipedia, CC BY-SA 3.0, via Wikimedia Commons
This is one of my favorite parts of town. That said, I haven't included it above because it's a bit of the way, so not always a great choice for first-time visitors with limited time.
The Palace District is the part of the VIII District that lies inside the Grand Boulevard and is characterized by palatial apartment blocks dating back to the 19th century. It’s an artsy, bohemian quarter home to small art galleries, cafes, and design boutiques–check out Főfotó, a bar with a photography theme.
You’ll also find the Hungarian National Museum and the gorgeous Szabó Ervin Library–a former palace transformed into a library. Nearby, there’s the buzzing Mikszáth Kálmán Square, which resembles an Italian plaza.
Once home to the Hungarian aristocracy, this area now offers a charming blend of history, culture, and affordable accommodation options (for something unique, try to book into the artsy boutique hotel Brody House, but you might need to book way in advance).
This is an ideal neighborhood for those seeking to explore beyond the typical tourist paths while enjoying a tranquil and budget-friendly environment.
Ferencváros (District IX)
The Hungarian National Theater. Photo: Marc Ryckaert (MJJR), CC BY 3.0, via Wikimedia Commons
Ferencváros (Francis Town) is an up-and-coming district known for its artistic flair and budget-friendly options. It’s home to several universities, giving it a lively, youthful atmosphere.
The area is rich in cultural attractions and has a burgeoning cafe and bar scene; you’ll also find the Great Market Hall, National Theater and the Bálna (The Whale), a modern architectural marvel housing galleries, shops, bars and restaurants along the Danube in this area. One of my favorites here is Élesző, a ruin bar with over 20 Hungarian craft beers on tap.
The buzzing area around Radáy Street is excellent for eating out as you’ll find numerous restaurants and bars along here (you’ll find the Michelin-starred Costes here and some more budget-friendly spots).
More Budapest travel info
For more advice on planning your trip to Budapest, have a look at some of our other guides and itineraries!
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Guided tours with Attila