Where to Stay in Budapest - A Local’s Neighborhood Guide
Affiliate disclosure: some of the links in this article are affiliate links. If you book using one of them, we’ll earn a small commission. All of our info is free to read and free of ads, so we appreciate it!
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
Introduction to Budapest’s districts
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 Buda on the west and Pest on the East. Most guides will tell you that when choosing accommodation you need to just pick either Buda or Pest, but I think that’s an oversimplification. Within each half of the city there are very distinct neighborhoods, and the atmosphere changes significantly from one to the next. So, you need to consider a bit more than just what 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.
Districts I, II, and III are all found in Buda, and if you stay near the river in any of these, you’ll be within easy walking distance of many of the city’s main sights. Be aware though, that portions of districts 2 and 3 stretch very deep to the north and west - away from the river - and those areas are not very convenient for sightseeing.
Meanwhile, most of the busier downtown districts - V, VI, VII, VIII, IX, and XIII - are found in Pest, and this is where the majority of the “action” in the city happens.
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.
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.
Now, let's take a look at my recommendations.
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 pretty 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.
Buda, on the western side of the river, is quieter and more residential. It 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 east, is the city's downtown. It's much busier than Buda and feels like a lively and modern European city. It's a good option if you’re 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 4 neighborhoods that I recommend for most visitors:
1. Belváros and Lipótváros - District V (red on the map above)
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. It’s very touristy though, so just don’t expect to be “immersed in local life”.
2. Terézváros - Distict VI (blue above)
Centered along the city’s grandest street - Andrassy Avenue - this area is a cultural hub lined with gorgeous old buildings. Central but far less touristy, its very upscale and refined.
3. Erzsébetváros - District VII (yellow above)
Perpetually busy, this is Budapest’s nightlife hub. It’s where you’ll find the famous ruin bars and its by far the liveliest atmosphere in the city. While centrally located, it’s probably most suitable for younger visitors.
4. Buda Castle District - District I (black above)
Found across the river in Buda, this is a historic and architecturally gorgeous neighborhood that is far quieter than the 3 mentioned above. Parts are very touristy and it can be rather quiet at night, but is exceedingly atmospheric.
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)
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 exploring.
I recommend this as the perfect starting point for anyone visiting the city for the first time. It’s packed with attractions and centrally located, so you can wander around and stumble upon some of Budapest’s most iconic sights.
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. The airport bus also drops you off right here.
Although some parts are very touristy (I’m looking at you, Váci Street), there are a few hidden, quiet parts here that I really like, such as the area around 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.
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 and 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.
You’ll find a lively mix of locals and tourists, giving the area a bustling atmosphere. It’s a central hub for the city’s residents and visitors, and is filled with cafes, restaurants, and bars. I love to grab drinks in Csendes Társ, a charming terrace backing onto Károly Gardens with friends in the summer. 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, with handcrafted journals and notebooks, or Paloma, a design collective in a hidden courtyard.
If you’re a foodie, I believe there is no better neighborhood in the city. You have a few Michelin-starred spots like Borkonyha Winekitchen and Salt, and it’s also home to some of my favorite lunch spots like Szimply or Cafe Kör. There are also a number of classic cafes like Café Gerbeaud and Parisi Passage which offer traditional Hungarian pastries and coffee in historic settings.
Where to stay
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.
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.
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.
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 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.
See more hotels in Belváros and Lipótváros
Main sights
Danube Promenade
A visit to Belváros isn’t complete without a stroll along the Danube Promenade. This scenic walkway offers stunning views of the Buda Castle and the Chain Bridge, which are especially beautiful at sunset.
I find this the perfect spot to promenade on a hot summer’s night, especially when riverside bars like Pontoon pop up, or people tango in the square just outside the Vigadó concert hall.
Váci Street
Explore Váci Street, a bustling pedestrian street lined with shops, cafes, and restaurants. This is the perfect place to soak up the local atmosphere and shop, whether you’re looking for high-end boutiques or local souvenirs.
If you love architecture like I do, I highly recommend looking up, as you’ll spot some wonderful buildings you can easily miss.
Hungarian Parliament Building
Don’t miss the Hungarian Parliament Building, one of Budapest's most beautiful and iconic structures. Take a guided tour (definitely book in advance, though) to learn about its history and admire the stunning architecture and interiors.
Shoes on the Danube Bank
Visit the poignant Shoes on the Danube Bank memorial, which honors the memory of the Jews who were killed during World War II. The simple but powerful monument consists of iron shoes along the riverbank, a stark reminder of a dark chapter in history.
St. Stephen’s Basilica
No visit to the V District would be complete without a stop at St. Stephen’s Basilica. Climb to the top of the dome for breathtaking city views, and don’t miss the opportunity to see the Holy Right Hand, a revered relic in Hungarian Catholicism.
Károlyi Garden
For a break from sightseeing, head to the tranquil Károlyi Garden, one of my favorite spots to find peace in the inner city. This beautiful green space offers a peaceful escape with well-maintained flowerbeds and picturesque walkways.
It’s a great spot to relax, have a picnic (tip: the Central Market Hall is quite close by for supplies), or simply enjoy some quiet time.
2. Terézváros (District VI)
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 Budapest's VI District, is dominated by the majestic Andrássy Avenue, 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.
With grandiose mansions, high-end boutiques, and cozy cafés, Terézváros offers an upscale and refined experience. It's very touristy along Andrassy Avenue (home to many of the city's luxury hotels), but as you move off into the side streets it becomes much more residential and very pleasant. This is where lots of wealthy locals have their apartments.
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.
For transport, you have metro stops for the yellow line every few blocks along Andrássy Avenue.
The area known as Oktogon (surrounding the Oktogon metro stop) is perhaps the busiest part of the district, and it’s from here, at this intersection, that Andrássy Avenue crosses with the Grand Boulevard. Once you go past the intersection, the avenue becomes quieter and more residential, with grand apartment blocks and villas housing foreign embassies.
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 more focused on wealthy locals than tourists.
At the far northern end of the district, 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 located within or beside the park, so there are tons of recreational and cultural opportunities to be had there.
Where to stay
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.
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.
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.
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.
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.
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.
See more hotels in Terézváros here
Main sights
Heroes' Square
Heroes’ Square, Budapest’s most iconic and expansive square, lies at the end of Andrássy Avenue on the edge of City Park. It’s bordered by the Museum of Fine Arts and the Hall of Art.
I recommend taking some time to explore and look at the details, like the former kings of Hungary dotting the colonnade or a hidden marker on the ground next to the Tomb of the Unknown Soldier marking the original location of the Széchenyi Thermal Baths before they were moved for the construction of the square.
Andrássy Avenue
Strolling down this prestigious boulevard, you’ll encounter an array of grand mansions, designer stores, and charming sidewalk cafés. Whether you're in the mood for high-end shopping, a leisurely coffee, or simply taking in the opulent architecture, Andrássy Avenue provides a quintessentially Budapest experience.
There are also a few excellent, underrated museums to check out, like the Hopp Ferenc Museum of Asian Art or the Mai Manó House of Photography in the area.
Around Bajza utca, I’d suggest going off the beaten path and exploring the surrounding streets, with romantic villas and striking palaces that you could spend days marveling at.
Opera House
The Hungarian State Opera House is renowned for its stunning architecture and superb acoustics, attending a performance here is an unforgettable experience that transports you to the height of 19th-century elegance.
It's an essential stop for anyone interested in the performing arts. However, if you can’t get a ticket for a show, you can always take a guided tour of the building during the day.
House of Terror Museum
This immersive museum commemorates the victims of the fascist and communist regimes in Hungary’s 20th-century history. It’s a poignant exhibition with numerous rooms decked out with art installations, videos with first-hand accounts of real people’s stories, and the original prisons used by the secret police in the basement.
3. Erzsébetváros (District VII)
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, it feels very authentically Budapest - faded glory marching on.
Metro stops ring the border of the neighborhood, giving you access to the red, blue, and yellow lines, making it easy to get basically anywhere else in the city. You also have trams and buses covering the main streets. Andrassy Avenue and central Pest are just a 15-20 minute walk away.
The district’s history is complex; 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 remain and can be visited: Dohany and Kazinczy.
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 find some curious countercultural hubs and bars like Kisüzem, Vittula, and Fekete Kutya.
It's a perfectly nice area to stay in even if you're not 20-something interested in partying, just be sure to pick a hotel away from the bars.
Where to stay
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.
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.
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.
See more Erzsébetváros hotel options here
Main sights
Ruin Pubs
Erzsébetváros is the birthplace of Budapest’s iconic ruin pubs, where abandoned buildings have been transformed into eclectic bars and clubs. The most famous of them all is Szimpla Kert. This sprawling pub is a maze of quirky rooms filled with mismatched furniture and whimsical decorations. It always has something going on, from live music and parties to art classes and even a farmers’ market on the weekend.
Instant-Fogas, another favorite, offers multiple dance floors and bars under one roof, making it a great spot for bar hopping and dancing.
The Great Synagogue
The Great Synagogue on Dohány Street is the largest synagogue in Europe and the second largest in the world. This architectural masterpiece is a testament to the area’s rich Jewish heritage.
It includes the Hungarian Jewish Museum and a Holocaust memorial, making it a poignant destination for those interested in history and culture.
The Ghetto Wall
Hidden within the district, you’ll find a fragment of a reconstructed memorial wall commemorating the enclosed Budapest Ghetto during the 1940s. This historic site serves as a sad reminder of the past and a tribute to the resilience of the Jewish community.
Visiting the Ghetto Wall offers a moment of reflection amidst the otherwise vibrant atmosphere of Erzsébetváros.
4. Buda Castle District (District I)
Found across the river in Buda, this is a historic and architecturally gorgeous neighborhood that is far quieter than the 3 mentioned above. Parts are very touristy and it can be rather quiet at night, but is exceedingly atmospheric.
Buda Castle
Matthias Church, with its beautifully tiled roof
A cobbled street leading up to Matthias Church on Castle Hill
The Buda Castle District on the city's west side sits on a hill rising above the Danube. 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 the city's most historic neighborhood and it is incredibly scenic. Home to some of the city's most iconic sights, like the Mattias Church, the Buda Castle, Rudas Baths, and Gellert Hill. There are also some curiosities for the more adventurous traveler: 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 or the subterranean Hospital in the Rock.
Public transport here is limited to along the riverfront where you have stops for the metro as well as trams and buses. You can also walk across the Chain Bridge into Pest, which would take around 30 minutes from the top of the hill (and much less if you're staying by the river). A quick taxi ride would also cost just a few euros.
Unlike central Pest, the Castle District is extremely quiet at night. Dominated by monuments and historical landmarks, few locals live here, so once the tourists have departed for the day, almost no one remains. It can feel almost eerily empty at night, but 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.
Keep in mind that everything here - restaurants included - shut up shop early, so you'll have to look elsewhere for dinner, drinks, or evening entertainment. This is not a great neighborhood for people looking for a lively evening atmosphere outside their door, but if you’re happy to head out into the city for the day and want to come back somewhere peaceful in the evening, it's a very good choice.
Despite how quiet it is at night, up on Castle Hill you have a clutch of excellent high-end restaurants that stay open late. For dinner, look to places like Pierrot, Magyar 21, Pest-Buda, and Budavári Rétesvár (a hole-in-the-wall famous for its strudels).
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 that combines bohemian chic with luxury. 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.
See here for more Castle District options
Main sights
Buda Castle
Dominating the skyline, Buda Castle is a palace complex that has been a symbol of Hungary for centuries.
You can wander through its courtyards and explore the palace from the inside in its museums, like the Budapest History Museum and the Hungarian National Gallery (except for St István Hall and the Medieval parts of the Budapest History Museum, much of the interior got a communist makeover, so don’t expect much when it comes to opulence).
The castle's terraces offer panoramic views of the Danube and Pest. I also love to explore the hidden gardens behind the southern part of the castle, which is surrounded by medieval turrets and walls; it’s very peaceful and picturesque.
Fisherman’s Bastion
This is one of my favorite lookout points in the city, but it gets super busy. The Fisherman’s Bastion is a fairy-tale-like structure with neo-Gothic and neo-Romanesque architecture, perched on Castle Hill, overlooking the Hungarian Parliament Building and the Danube.
I recommend coming here early in the morning before the crowds set in.
Matthias Church
You’ll find Matthias Church next to Fisherman’s Bastion, and it’s hard to miss with its gothic spires and intricate, colorful tiled roof. The interior is just as bright, with richly decorated frescoed walls.
The church has been a site of coronations and royal weddings throughout history, from Medieval times to the present, but it has been built up over the centuries. Entrance tickets are fairly expensive, but I think it’s worth going inside to see the intricate frescoes, stained glass windows, and all the curious details that mark the church’s curious history.
5. Újbuda (District XI)
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
Across the Danube in Buda 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 close to all the main attractions.
There are no big sights here, so this isn’t where you’ll be doing your sightseeing, but it’s simply 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.
And when you’re going to be spending the better part of each day visiting the sights and being surrounded by other tourists, it’s an absolute pleasure to start and end your days in Újbuda, grabbing breakfast or dinner at a nice local spot where the prices are exceedingly reasonable and the other patrons are locals rather than visitors.
The neighborhood stretches quite far back, so as always, you’ll want to stay relatively close to the river, 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 each night, so you’ll have plenty of options for extending your days well into the evenings.
Some of my favorite places to eat, drink and shop are here, so below I’ve named just a few to give you an idea:
Kelet, an uber cool 2-story cafe/restaurant whose walls are lined with books
Szatyor - an upscale “ruin bar” that’s a rarity for this side of the river
Hadik, a staple café here since the early 1900’s that’s housed in a beautifully restored historic building right on a pretty square (Gárdonyi Square),
Béla a relaxed, cozy, and sort of eclectic charming little bar and restaurant
Keg Sörmuvház - a craft beer bar (these are becoming ever more popular in the city) in an awesome brick-domed space
Pékmuhely Bartók, one of my favorite bakeries in the city. You should absolutely try the kakaós csiga and túros táska (look them up!)
Can you tell that I quite like this area yet?!
To wrap up, here are a few other things to know: staying here puts you quite close to the famous Gellért Baths and Gellért Hill, and if you head further south along the river, there is also the beach area around Kopaszi Dam, which is a popular summer spot with its Danube beaches and riverside bars.
For getting around, you have two metro stops at either end of Bartók Béla Boulevard, as well as well as a host of buses and trams. You won’t be able to walk everywhere from here, but the access to public transportation makes getting around quick and easy.
Where to stay
As far as I know, there are no hotels in the neighborhood, so you’ll need to look for AirBnB apartments or other short-term rentals if you want to stay here.
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!
Attila Höffle
Hungary Expert based in Budapest
Szia - hi there! 👋
Hi, I'm Attila, and I've been a tour guide and travel consultant here in Hungary for the last 8 years. If you're looking for some local advice on your trip, I'd love to help!
Learn more Book a consultation
.jpg){kind=link}
.jpg){kind=link}
.jpg){kind=link}
Guided tours with Attila