Where to Stay in Budapest for First Timers in 2024

Where to stay in Budapest the first time around? I can tell you from personal experience that answering this question is much more difficult than it is for many other Central European capitals. 

There are just so many areas of Budapest that have something to recommend them, from the party vibe of the Jewish Quarter to the romantic, crumbling mansions of Jozsefvaros (District 8).

Budapest was once the jewel in the crown of the Austro-Hungarian Empire. While it lost some of its luster during the post-war communist era, the 21st century has seen it regain much of its shine.

With such cheap and effective public transport, you won’t find yourself limited in scope when it comes to deciding on the best place to stay in Budapest. 

*This post may contain affiliate links, which means I may receive a commission, at no extra cost to you, if you make a purchase through a link. Please see my full disclosure for further information.

Even if you opt for a relatively budget-friendly option in off-the-beaten-path Ferencvaros (District 9), you’ll still be able to make your way into the center of town in under half an hour via a scenic riverside tram or a cross-town bus.

I’ve stayed in Budapest for over a month in District 7 and have explored in depth all of the best Budapest neighbourhoods in this guide.

Using that experience, I’m going to help you break down the best areas to stay in Budapest according to a variety of factors, including tourist sights, nightlife, the density of restaurants and the general atmosphere. 

By giving you a flavour of what each place has to recommend, you’ll be able to pick the best holiday spot for your preferences. Rest assured, however, that no matter where you choose to lay your head, you’ll never be too far from some beautiful architecture and a big bowl of borscht. Plus there are some really cool Budapest boutique hotels for the choosing.

Where I Stayed in Budapest (and Loved!)

Buda vs Pest

As many locals will delight in telling you, Budapest was originally not one place, but three: Buda, Pest and Obuda. 

The trio was only united into a single metropolis in 1873, though today most people forget about Obuda (old Buda) and broadly define the Hungarian capital as Buda on the western bank and Pest on the eastern bank.

One of the first questions to ask yourself before you even begin examining the different districts in more detail is where to stay in Budapest: Buda or Pest? 

The former boasts some of the most interesting sights and fantastic views, but the latter is more modern and diverse.

Ultimately, I would recommend that most people stay in Pest because it has a greater breadth of restaurants, bars and cafes. 

While Buda is beautiful, it’s not quite as convenient as a base if you want to go to the buzziest part of town in the evenings.

Understanding Budapest’s Neighbourhood Numbering System

Budapest’s districts are numbered between I and XIII, radiating outwards from the city’s main artery, the Danube River. 

Buda occupies the hilly west bank, while Pest is on the flatter east bank. Once upon a time, the area was ruled from Buda, as evidenced by the castle. Today, it is Pest’s District 5 that functions as the center.

Best Places to Stay in Budapest Map

Where to Stay in Budapest for First Timers

1. Buda (Castle District): Where to Stay in Budapest for Couples

DISTRICT | 1
BEST FOR | First Time Visitors, Castle

For lovers of grand architecture and great views, the castle district is one of the best places to stay in Budapest, Hungary. 

The area was first settled in the 1200s, when King Bela IV built his fortress here, in a position where he could dominate the surrounding land.

Today’s Baroque Buda castle was erected several hundred years later, in the 1800s. This impressive beast of a building contains both the Hungarian National Gallery and the Budapest History Museum, which gives an overview of the city’s history and importance.

Ornamenting the castle are some of the city’s other iconic constructions, including the Neo-Romanesque towers and corridors of the Fisherman’s Bastion. This monument runs along the edge of the hill and provides panoramic views of Pest and especially the Hungarian Parliament Building.

Buda is really the heart of the tourist town, with a heavy concentration of historical bronze statues, an elaborate fountain and the gothic Matthias Church with its unique ceramic roof tiles. 

This is arguably the best location in Budapest if you want to be right in the midst of the city’s history. Plus, you can always escape south to the greenery of Gellert Hill if you need a break from the crowds.

Cool Things to Do in Budapest District 1

Best Tours of Budapest District 1

• Buda Castle Guided Walking Tour
• Buda Castle Cave Tour
• Concert at Matthias Church

Best Restaurants + Cafes in Budapest District 1

• Best Coffee: 4 Minutes Cafe
• Best Desserts: Ruszwurm Confectionery
• Hungarian / French Bistro: Déryne

Budapest District 1 (Castle District) at a Glance

Best Hotels in Budapest District 1

2. Lipotvaros / Belvaros: Where to Stay in Budapest for Central Location

DISTRICT | 5
BEST FOR | First Timers, Central Location for Short Stays

Where is the best area to stay in Budapest for tourists? Many people would say District 5 because it’s right in the center of town. 

Not only is it easy to reach all the main attractions from here, but there is also a bountiful selection of restaurants, coffee houses, bars and shops from which to choose.

My favourite thing about the 5th District Budapest is the stunning selection of buildings from the late 19th and early 20th century, most of them conceived to commemorate the 1,000-year anniversary of the creation of a Hungarian state. 

None is more impressive than the Neo-Gothic Hungarian Parliament Building, which at its highest point is 96 meters, making it the joint tallest building in the city.

It shares that honour with St. Stephen’s Basilica, a Neo-Classical church filled with gilded surfaces and religious artwork painted by local greats. If you come around Christmas time, the square outside hosts one of Budapest’s most popular Christmas markets.

Complementing these architectural splendours are numerous statues dotting the streets and squares, including the Little Princess and the Fat Policeman.

The most famous sculpture, however, is the Shoes on the Danube Bank, a memorial which remembers the murders of Hungarian Jews during WWII.

Cool Things to Do in Budapest District 5

Best Tours in Budapest District 5

• Grand City Tour with Hungarian Parliament Building Visit
• Concert at St. Stephen’s Basilica
• St. Stephen’s Basilica Guided Tour with Tower Access

Best Restaurants + Cafes in Budapest District 5

Budapest District 5 at a Glance

Best Hotels in Budapest District 5

Planning to visit Prague, too? Here are the best areas to stay in Prague for first timers

3. Terezvaros: Best Place to Stay in Budapest for Budget Travellers

DISTRICT | 6
BEST FOR | Budget Travellers

The 6th District Budapest is defined by Andrassy Avenue, which stretches from St. Stephen’s Basilica to Heroes Square. 

Along this road, which some refer to as the city’s answer to the Champs-Elysees, you’ll find high-end shops, mansions-turned-embassies and villas of the well-to-do.

Continuing my obsession with awesome buildings, make sure you check out the Neo-Renaissance Hungarian Opera House, which is mounted with statues of a famous composer, as well as the Franz Liszt Academy of Music with its Art Nouveau façade featuring buff naked men. 

For all you history buffs, don’t forget a visit to the city’s House of Terror, and it’s not what you think. The House of Terror is a haunting museum that details how the Nazi and Soviet regimes in Hungary affected the country and is a memorial to its victims. The best museum in Budapest, in my humble opinion.

Another highlight of this area is the world-famous Szechenyi Thermal Baths. Taking a dip here is a must on your visit to Budapest. I mean, have you even been to Budapest if you haven’t been to the baths at Szechenyi?

What puts District 6 in contention as the best area to stay Budapest has to offer is the quirky dichotomy between the fancy part we just mentioned and the more grungy, less chic areas that exist away from Andrassy Avenue. 

It’s here you’ll find cheap unassuming bars, local greengrocers and simple meat shops like Pinczi Hús-Hentesáru selling roast pork belly for small change.

Beneath all this runs the most aged part of the world’s second oldest metro system (Budapest was pipped to the post by London). 

The M1 line is remarkably well preserved, so much so that it was highlighted by UNESCO in its World Heritage Site citation of central Budapest. 

Cool Things to Do in Budapest District 6

Best Tours in Budapest’s District 6

• Szechenyi Thermal Spa Full Day Pass
• Communist History Tour with House of Terror

Best Restaurants + Cafes in Budapest District 6

• Traditional Coffee Shop: Cafe Zsivago
• New-Age Coffee Shop: Cube Coffee Bar
• Hungarian: Frici Papa

Budapest District 6 at a Glance

Best Hotels in Budapest District 6

4. Erzsebetvaros (Jewish Quarter): Best Area to Stay in Budapest for Ruin Bars & Nightlife

DISTRICT | 7
BEST FOR | Nightlife, Trendy Cafes, Young Travellers

Where is the best place to stay in Budapest if you want to party the night away? Oddly enough, the former Jewish Quarter. Here, hidden amidst the 7th District Budapest streets, you’ll find the (in)famous ruin bars.

Originally, these drinking dens sprang up in neglected buildings and abandoned courtyards, to provide a place for young people to escape their cares. 

Today, they have become heavily commercialized, from the so-famous-you-have-to-go-even-if-every-tourist-goes Szimpla Kert (go to the Sunday morning market for a different vibe) to the wild party complex of Instant-Fogas.

Fortunately, you can still find some places that retain the original laid-back vibe in the Budapest nightlife area, such as Koleves Kert.

If drinking isn’t your thing, there are also a heap of nice cafes, including one of the city’s first specialist coffee shops, My Little Melbourne, and the much newer, and ever-so-popular Aran Bakery. Please don’t leave Budapest without getting at least one pastry from Aran Bakery.

The Jewish Quarter is, of course, also home to plenty of Jewish history, including Europe’s largest synagogue. 

Located on Dohany Street, it is easily recognizable from its twin onion-domed towers. Inside, if you aren’t instantly blinded by the bling-bling chandeliers, you’ll notice there are two separate levels, one for men and one for women.

Complementing the Jewish heritage are a whole bunch of Jewish eateries, from the unvarnished traditional fare of Hanna Orthodox Kosher Restaurant to the modern cool of Mazel Tov.

Cool Things to Do in Budapest District 7

• Splash out on a drink at the iconic Szimpla Kert ruin bar
• Gawp at the excesses of the New York Cafe
• But get your actual coffee down the street at Coffee Stand Dob St.
• Don a kippah and visit the Dohany Street Synagogue
• Grab some street food from a stall at Karaván

Best Tours of Budapest’s Jewish Quarter

• Dohany Street Synagogue Skip-the-Line Ticket
• Alternative Budapest Walking Tour
• Ruin Bars Pub Crawl with Open Bar

Best Restaurants + Cafes in Budapest District 7

• Modern Jewish Eatery: Mazel Tov
  Modern Jewish Eatery: Dobrumba
• Coffee Window: Coffee Stand Dob St.
• Pastries: Aran Bakery
• Coffee and Breakfast: Dorado Cafe
• Vegan: Tahina Bite Vegan Food
• Brunch: Franziska
• Watering Hole: Kisuzem
• Ruin Bar Restaurant: Koleves Kert
• Street Food: Karavan Street Food Park

Budapest District 7 at a Glance

Best Hotels in Budapest District 7

5. Jozsefvaros (The Palace District): Coolest Budapest Neighbourhood

DISTRICT | 8
BEST FOR | Coolest Neighborhood in Budapest

If you prefer to situate yourself further away from other tourists, 8th District Budapest is the choice for you. 

Also known as the Palace District, this area was once home to aristocrats and wealthy magnates. That all changed with the arrival of communism when everything fell into disrepair.

Not many guides will list Jozsefvaros among the best areas to stay Budapest boasts, partly because even today a lot of it remains dilapidated and unsightly. 

More and more, however, extensive renovations of the older buildings are taking place in tandem with the demolition of concrete communist blocks, as gentrification begins to pick up the pace.

It’s here you’ll find lots of lesser-visited gems, including the former Wenckheim Palace. This striking building has since been turned into the Metropolitan Ervin Szabo Library, but some of the extravagant interiors have been retained and turned into reading rooms.

Another fantastic find is the Kerepesi Cemetery, which is filled with striking mausoleums and sculptures. For those interested in Hungarian history, the most elaborate tombs are a who’s who of the country’s greatest personages.

And speaking of Hungarian history, District 8 is also where you’ll find the Hungarian National Museum. In between gawping at the stunning interiors, you can trace the nation’s evolution through the centuries.

But, besides the deep Hungarian history of this Budapest district, District 8 is emerging as one of the coolest neighbourhoods in the city. 

With hole-in-the-wall coffee shops, new-age brunch cafes (like Lumen Cafe) and Budapest boutique hotels, this is the area to stay if you want to live like a hipster local and sip coffee at a streetside cafe.

Cool Things to Do in Budapest District 8

• Pay homage to Hungary’s heroes at the Kerepesi Cemetery
• Create your own walking tour of the numerous palaces that fill the area
• Read an improving book amidst the gilded glamour of the Metropolitan Ervin Szabo Library
• Brush up on your local history at the Hungarian National Museum

Best Restaurants + Cafes in Budapest District 8

• Brunch: Lumen Cafe
• Coffee: Apricot Coffee
• Tapas: Padron Tapas Bar
• Bagel Shop: Budapest Bagel

Budapest District 8 at a Glance

Best Hotels in Budapest District 8

Other Great Areas to Stay in Budapest 

6. Ferencvaros: Best Area to Stay in Budapest for Local Living & Markets

DISTRICT | 9
BEST FOR | Market, Local Feel, Budget Travellers

There are bargains to be had in Ferencvaros, Budapest’s 9th District – and we’re not just talking in terms of cheap accommodation. 

This part of town is most famous for hosting the Great Market Hall: an emporium of (largely) food spread across three floors.

Here, you’ll find spices and sausages, fresh fruit and vegetables, fish and meat, Tokaj wine and even a few souvenirs. 

If you’re feeling peckish, pick up a langos (deep-fried flatbread with garlic, sour cream and cheese) on the mezzanine level.

Just a touch to the south and west, sitting beside the Danube, is Esetleg Bistro, where you can relax with a drink and some soothing river views.

The further south you go in Ferencvaros, the more local everything feels. You’ll find quite a few trendy bars and restaurants, all stacked with Budapest natives.

If you have the time, head to Mupa, the so-called Palace of the Arts, where exhibition spaces, performance spaces and art installations collide.

7. Rozsadomb: Where to Stay in Budapest for Families 

DISTRICT | 2
BEST FOR | Families

If you were to ask a local where should I stay in Budapest if I have children, one of the most popular responses would be Rozsadomb. This is a fashionable, well-to-do residential area where accommodation comes at a premium price tag.

The area’s name, Rose Hill, stems from the legend that the first roses planted in Hungary were nurtured here by Ottoman invaders. In particular, a man by the name of Gul Baba is accorded the honour of being the first man to grow the flower here, and his tomb is still visitable today.

Situated just north of the Castle District, it has great access to Buda’s top attractions and quieter streetside cafes, like Home of Franziska and Cinnamon. 

Head further out into the depths of District 2 and you’ll encounter some of the city’s most luxuriant green spaces, which are popular places for locals to go hiking and make the region a great place for nature lovers to stay. 

If you are staying here to see Budapest’s tourist sites, I recommend holing up in a fantastic boutique hotel in the district’s southeast corner.

If you do venture into the wilds though, make sure you don’t miss the views from Kaan Karoly Lookout Tower.

For architecture aficionados, District 2 also hosts a Bauhaus enclave, situated in the Pasaret neighbourhood.

8. Angyalfold

DISTRICT | 13
BEST FOR | Residential Feel, Green Parks, Longer Stays

Rounding out this Budapest district guide is District 13, which for me conjures unfortunate memories of the Hunger Games films (I read all the books, too!). 

Angyalfold isn’t as dystopian as all that, though it doesn’t quite live up to its name, which means ‘Angel’s Field.’

Having said that, the Ujlipotvaros part of District 13 is becoming an increasingly chic area just north of the Hungarian Parliament, building upon the long-standing cool of its Bauhaus buildings. 

Meaning ‘New Leopold Town’, Ujlipotvaros is one of the more recently developed parts of Budapest. While it may not be quite as happening as District 7, it does host a few of the city’s trendiest restaurants as well as some cool cafes. 

Plus, there’s a lovely promenade along the Danube if you fancy a light stroll.

From Ujlipotvaros, you can easily cross over onto Margaret Island, which is essentially one big park with a couple of food joints, a couple of thermal spa retreats and stages for live performances during the summer. 

Again, it’s a very restful part of Budapest in which to reside.

Best Budapest Tours

Taking a guided tour when visiting a city for the first time is one of the best things you can do. I love that you can untethered access to a knowledgeable local guide to learn about Budapest’s history and culture. And everything is taken care of for you! Win, win.

These are the most popular, highly-rated Budapest tours:

• 1-Hour Sightseeing Cruise with Welcome Drink
•  Szechenyi Thermal Spa Full Day Pass
• Grand City Tour with Hungarian Parliament Building Visit
• Buda Castle Guided Walking Tour
• St. Stephen’s Basilica Guided Tour with Tower Access

Budapest City Card

Don’t forget to grab your Budapest City Card

Benefits of a Budapest City Pass:

• Unlimited public transport
• Complimentary entrance to the city’s best museums and attractions
• Special discounts (up to 50%) on attractions and tours
• Guided sightseeing tour of Buda and Pest
• Lukacs Thermal Bath entrance pass

What’s Included in the Budapest City Card:

• 24, 48, 75, 96 or 120-hour inclusion
• Entry to all selected museums listed
• Special discounts for card holders

If you choose the 72-hour Plus City Card you get:

• Complimentary Airport transfers
• Complimentary Danube River cruise
• Buda Castle Funicular Ride
• Mattias Church entrance
• Complimentary chimney cake dessert

How to Get Around Budapest

Budapest Airport to City Centre

When you first arrive in town, there’s a very convenient shuttle service, the 100E, that connects Budapest Ferenc Airport to the city center and runs throughout the whole night.

Better yet, book yourself this popular shared airport shuttle transfer.

Walking 

If you stay in one of the more central areas, such as District 5 or District 1, you will probably find yourself walking everywhere, as the city is largely pedestrian-friendly – excluding, perhaps, the steep ascent to Buda Castle if you don’t take the funicular.

I stayed in the 7th district and walked entirely of the city, from Heroes Square to Buda Castle to the Great Market Hall. Walking is definitely my preferred and recommended way to get around Budapest.

Public Transportation

Buses are the most popular form of transport with locals, as there are numerous lines that traverse the entire city. 

For visitors, however, the tram lines are the more scenic way to go. In particular, I recommend taking Tram Line 2 down the Pest side of the Danube River for some gorgeous views.

The underground system is also a very easy-to-navigate method of getting to many of the major sights. Even if you end up walking most of the time, venture down at least once along Metro Line 1 to see some of the best-preserved early stations.

Hop-On Hop-Off Bus

Like most cities in Europe, Budapest can be easily explored by a hop-on hop-off bus. YOu can book your pass in 24, 48 and 72-hour durations. Once you hop on board the bus, you are given an audio guide for your listening pleasure. 

A hop-on hop-off bus pass is a great way to see Budapest without all the walking, especially if you are short on time! 

Best Time to Visit Budapest

The shoulder seasons of April-June and September-October are the ideal times to visit Budapest, similar to other cities in Central Europe. 

This is when the weather is at its most temperate and you’ll avoid the huge crowds of tourists that arrive in high summer.

September is the Month to Visit Budapest

If you need an added incentive to visit in September, that’s when the city has a wine festival that’s romantically hosted in the courtyards of Buda Castle.

Winter in Budapest

Otherwise, Budapest is an underrated destination for a cozy winter getaway because of its selection of hot spring spas. 

You’ll also be able to take advantage of the city’s buzzing Christmas markets.

How Many Days in Budapest

I recommend spending 2-3 days in Budapest, provided you stay in a reasonably central part of town.

A simple 2 day Budapest itinerary could look like this:

2 Day Budapest Itinerary – Day 1:

Start your trip in District 1, exploring the grounds of Buda Castle and walking the aisles of Matthias Church and admiring the views from Fisherman’s Bastion. 

From there, you can easily cross one of the many bridges spanning the Danube to see more modern monuments on the Pest side, such as the Hungarian Parliament Building and St. Stephen’s Basilica. In the evening take a stroll down the Danube River promenade.

2 Day Budapest Itinerary – Day 2:

On your second day, explore Andrassy Avenue up to Heroes Square, before taking a relaxing soak in the Széchenyi Thermal Bath. 

Have afternoon coffee at the ornately decorated New York Cafe and check out the plethora of food and souvenir stalls at Great Market Hall. 

Then, loosen up for a night on the town in Jewish Quarter’s ruin bars.

Where to Stay in Budapest Conclusion

Hopefully, I’ve been able to give you a lot of different perspectives on where it is best to stay in Budapest. 

For my part, I find each of the Budapest neighbourhoods has its own attractions, from the convenience of District 5 to the up-and-coming cool of District 8. Regardless of the areas of Budapest you ultimately decide to stay in, I’m sure you’ll have a great time!