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Planning a trip to Budapest and wondering where to stay? The Hungarian capital is a city of two halves—Buda and Pest—divided by the Danube River and filled with beautiful neighborhoods, each with its own vibe. Whether you’re looking for quiet evenings with castle views or exciting nightlife with ruin bars and street food, choosing the right base can make your stay that much more enjoyable.

When picking your accommodation in Budapest, you’ll want to consider three things: walkability, safety, and comfort. Luckily, the city has an excellent public transportation system so you’re always just a few stops away. Still, staying close to a metro or tram stop and within walking distance of attractions makes exploring much easier.

Below, I’ll walk you through the best neighborhoods to stay in Budapest, with nearby attractions, transportation options, and hotel recommendations.

District V (Belváros-Lipótváros / Inner City)

the beautiful interior of Stephen's Basilica in Budapest

If you want to be in the very heart of Budapest, District V is the place. This central area along the Danube is walkable, safe, and filled with attractions. Many of the city’s most famous landmarks are just steps away, so you can easily spend your days exploring without ever needing to hop on a tram.

Why stay here: It’s central, elegant, and convenient. Perfect for first-time visitors.

Transport: Deák Ferenc tér is the city’s main transportation hub where three metro lines meet, so you can get anywhere quickly.

Nearby highlights:

  • St. Stephen’s Basilica
  • Hungarian Parliament Building
  • Danube Promenade
  • Károlyi Garden for a quiet green escape
  • Váci utca shopping street

Hotel recommendation: Prestige Hotel Budapest

District VI (Terézváros / Andrássy Avenue & Opera)

staircase at the Hungarian National Opera

If you love architecture, music, and stylish cafés, District VI is a dream. Andrássy Avenue, often called the Champs-Élysées of Budapest, is lined with grand buildings, designer shops, and cultural landmarks. The area strikes a balance between lively and elegant, though certain streets can be a little busy at night.

Why stay here: Great mix of culture, style, and walkability.

Transport: The historic yellow metro line (M1) runs right under Andrássy, connecting you easily to Heroes’ Square and City Park. Trams and buses also crisscross the area.

Nearby highlights:

  • Hungarian State Opera House
  • Liszt Ferenc Square (full of cafés and restaurants)
  • Heroes’ Square and City Park
  • Boutique shopping along Andrássy

Hotel recommendation: Monastery Boutique Hotel Budapest


District VII (Erzsébetváros / Jewish Quarter)

Budapest’s most energetic neighborhood, District VII, is perfect if you love nightlife, trendy cafés, and eclectic vibes. It’s famous for its ruin bars—quirky, artsy pubs set inside old, crumbling buildings—but also home to beautiful synagogues and a growing food scene.

Why stay here: Vibrant, central, and full of character. Best for travelers who like a lively atmosphere.

Transport: Excellent connections via metro, trams, and buses. Everything in central Pest is easily walkable.

Nearby highlights:

  • Dohány Street Synagogue
  • Gozsdu Courtyard (bars, restaurants, and nightlife)
  • Street food markets and boutique shops
  • Ruin bars like Szimpla Kert

Hotel recommendation: Hotel Moments Budapest

District I (Castle District, on the Buda Side)

For something quieter and more romantic, head across the river to the Castle District. This historic neighborhood offers cobblestone streets, fairy-tale views, and a peaceful vibe. It’s not as bustling with nightlife as Pest, but the atmosphere is enchanting—perfect if you prefer early evenings and scenic walks.

Why stay here: Historic charm, stunning views, and quiet surroundings.

Transport: You’ll rely more on buses and the funicular here, though it’s still easy to cross the river to Pest. Keep in mind the hills. They’re great for views, but not so great for walking up and down on vacation.

Nearby highlights:

  • Buda Castle
  • Fisherman’s Bastion
  • Matthias Church
  • Gellért Hill and Rudas/Gellért thermal baths

Hotel recommendation: Hilton Budapest

District IX (Ferencváros)

If you’re looking for something central yet a bit more affordable, Ferencváros is a solid choice. The parts close to the river and Great Market Hall are safe, walkable, and convenient, while further-out areas are more residential. This district is up-and-coming with a mix of old-world charm and modern cultural spaces.

Why stay here: Good balance of affordability and location, with plenty of transport links.

Transport: Kálvin tér and other nearby hubs connect you to the rest of the city via metro and tram.

Nearby highlights:

  • Great Market Hall
  • Riverside walks
  • Growing café and art scene
  • Easy access to central Pest

Hotel recommendation: Bohem Art Hotel

Tips on Where to Stay in Budapest

  • For most visitors, District V or VI is unbeatable for walkability and access to landmarks.
  • If you want quiet, stay in the Castle District on the Buda side.
  • For nightlife and partying, the Jewish Quarter (District VII) is the best choice. Here’s some fun things to at night in Budapest.
  • For a budget-friendly but central option, Ferencváros (District IX) is close to transportation and more affordable than other areas.

No matter where you stay, Budapest’s efficient public transportation system makes it easy to explore. You’ll never be far from chimney cakes, a thermal bath, or beautiful Hungarian architecture.

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