Where to Stay in Budapest: The Best (and Worst) Neighborhoods for Travelers

I moved to Budapest in 2019, planning to base myself there for a while. Then the pandemic hit and suddenly “a while” turned into three years. I lived in three different districts, made every rookie housing mistake possible, and figured out exactly which neighborhoods I’d recommend (and which ones I absolutely wouldn’t).

Budapest isn’t that big, but where you stay still makes a difference. Some areas are beautiful but boring. Others are cheap but loud. Some look great on booking sites but leave you walking 20 minutes just to get a decent coffee. It’s the kind of city where being in the right spot saves you time, money, and a fair bit of annoyance.

This guide breaks it down simply: which neighborhoods are worth staying in, which ones aren’t, and where I’d personally book a hotel – based on actually living here. Let’s start with the good news: most central districts are safe, walkable, and well-connected. But a few make much better home bases – especially if you’d rather spend your mornings exploring than figuring out public transport.

What to Know About Safety in Budapest (and Why You’ll Probably Be Fine)

Budapest is one of the safest cities I’ve lived in. Violent crime is rare, street harassment is low, and public transport runs late without feeling sketchy. I’ve walked home alone at 2am more times than I can count. But then again, I come from Pakistan. 

That said, Hungary’s political climate can feel tense, especially if you’re queer, Roma, brown, or visibly part of a marginalized group. Budapest itself is a bubble, a wonderful one – younger, more progressive, more international – but the wider country tells a different story. You probably won’t feel that tension day-to-day, but it’s worth being aware of the context.

As a traveler, the main safety concerns are the usual ones: pickpockets in crowded areas, dodgy taxis outside bars, and overenthusiastic stag parties. The latter aren’t dangerous, just loud, and mostly clustered in District VII.

All the neighborhoods recommended in this guide are safe, well-lit, and easy to navigate. If you’re looking at other areas, just keep in mind that Budapest’s district numbers go up as you move out – and the higher they get, the more likely you are to spend half your trip on public transport.

Musafir in Transit contains affiliate links and is a member of the Amazon Services LLC Associates Program. If you book through these links I may make a small commission at zero cost to you. It helps me pay for the upkeep of this blog. Thank you! See the Disclosure Policy for more info.

Understanding Budapest’s Neighborhoods (Without Getting Lost in the Numbers)

Budapest is split by the Danube into two halves: Buda (west) and Pest (east). Pest is where most visitors stay – it’s flat, easy to navigate, and packed with cafés, bars, and things to do. Buda is hillier, quieter, and more residential, though it has some postcard-worthy spots like Castle Hill and Gellért Baths.

The city is divided into 23 districts (kerület in Hungarian), numbered in a spiral pattern like Paris. You’ll see them written with Roman numerals – District V, District VII, etc. Sounds intimidating, but in practice, you’ll only need to think about maybe five or six of them. The rest are either too far out or just not great for travelers.

You don’t need to memorize the numbers – I’ll walk you through which districts are worth staying in and which ones to skip. If you’re still planning your itinerary, check out my guide for a weekend in Budapest, it’s built from the way I actually lived and explored here.

Best Neighborhoods to Stay in Budapest (with Hotel Picks)

District V – Belváros-Lipótváros

Best for first-timers, sightseeing, and an easy intro to the city

If Budapest had a true “downtown,” this would be it. District V stretches along the eastern bank of the Danube, home to the Parliament Building, St. Stephen’s Basilica, and some of the city’s prettiest streets. It’s elegant, central, and walkable — everything feels polished without being too sterile.

This is where I send friends on their first trip. It’s close to everything, quiet at night, and well-connected by tram and metro. You’ll pay a bit more to stay here, but you’ll save time and energy by not having to commute in and out of the city center every day. Bonus: it’s one of the few tourist-heavy districts that doesn’t get loud or chaotic after dark.

District VII – Erzsébetváros (The Jewish Quarter)

Best for nightlife, street food, and staying out too late

This was my first Budapest neighborhood – I lived here straight out of grad school, in an apartment facing the Synagogue and a ruin bar. It’s loud, chaotic, and full of life in every season. If you want to go from espresso to espresso martini without changing postcodes, this is your place.

Erzsébetváros is the city’s party heart – home to Szimpla Kert, Kazinczy utca, and most of the ruin pubs and food trucks you’ve seen on Instagram. But it’s not just nightlife. The side streets are packed with vintage shops, Jewish history, and cafés you’ll want to claim as your own. It’s walkable, young, and full of budget-friendly eats.

Would I stay here again now? Probably not – I like sleeping. But if you’re under 30 or don’t mind a bit of noise, it’s a fun, central spot with energy to spare.

District VI – Terézváros

Best for boutique stays near shops, cafés, and the Opera House

District VI is anchored by Andrássy Avenue – Budapest’s answer to the Champs-Élysées, though if you’ve actually been to Paris, the comparison feels generous. Still, it’s a lovely street to walk, lined with designer stores, the Hungarian State Opera, and a handful of embassies in old mansions.

I didn’t live here, but I was in the neighborhood twice a week for kickboxing classes. It’s a mix of glossy and gritty: upscale hotels and historic cafés next to crumbling facades and no-frills kebab joints. It’s central without feeling crowded, and quieter than District VII next door – more suit-and-coffee than beer-and-backpack.

There’s not a single landmark pulling you in, but if you like elegant streets with plenty of café corners and easy access to both nightlife and museums, it’s a solid in-between.

District XIII – Újlipótváros

Best for longer stays, slow travel, and pretending you live here

This was my favorite Budapest neighborhood – I lived here for years and would move back in a heartbeat. Újlipótváros feels a little tucked away, just north of the Parliament and running along the Danube, but it’s still central enough to get anywhere fast. The tram leaves right from the edge of the district and zips down to the city center in minutes.

The vibe here is very local. You’ll find leafy streets, grandparents walking tiny dogs, and independent cafés where baristas know your name. Margaret Island is just across the bridge – perfect for morning runs or summer picnics – and while there aren’t a ton of hotels, what’s here is charming and quiet.

If you’re staying longer, working remotely, or just want a break from Budapest’s more touristy corners, this is the spot.

District I – Castle District

Best for postcard views, slower mornings, and Buda-side calm

When Pest felt too loud, this is where I’d retreat. The Castle District is Buda at its most polished – cobblestone streets, pastel facades, and panoramic views around every corner. It’s undeniably beautiful, and even after living in Budapest for years, walking past Matthias Church in the snow or catching golden hour from Fisherman’s Bastion never got old.

That said, it’s not for everyone. The area can feel a little too quiet after dark, and there’s a sense of being on the outside looking in – less about cafés and corner stores, more about curated history. Still, if you’re after charm, calm, and a front-row seat to some of the city’s most iconic sights, this is the place.

District IX – Ferencváros

Underrated but solid: part student scene, part local life

Ferencváros runs along the river just south of the city center – not exactly on most first-timer itineraries, but a great pick if you’ve already seen the main sights and want a neighborhood that feels lived-in. You’re near the Central Market Hall, Bálna Budapest, and tram lines that zip you straight up the river.

It’s a bit of a mix: renovated lofts next to crumbling facades, university buildings around one corner and office towers around the next. I used to come here for after-work drinks at the Whale and remember it feeling more “real” than touristy Pest – less curated, more everyday Budapest.

It’s especially good for short-term apartment stays or digital nomads who want something central-adjacent, but not polished to perfection.

District VIII – Józsefváros

Cool, gritty, and growing into itself

Józsefváros used to be the part of town people warned you about – now it’s where you’ll find some of the best coffee, student bars, and slowly gentrifying corners of Budapest. It’s not as polished as the inner districts, but that’s part of its draw. You’ll see street art, crumbling façades, and shiny new buildings all on the same block.

A lot of expats and students end up here, especially around the university area. The Palace Quarter is the nicest part, filled with wide streets, quiet cafés, and some surprisingly elegant architecture. It’s still evolving – and you might not want to stay here on your very first visit – but if you like cities with a little grit and edge, District VIII delivers.

Where I Wouldn’t Stay (Unless You Have a Reason)

Not every Budapest neighborhood makes a great base – especially if you’re short on time. Here are a couple I’d skip unless you’ve got something specific drawing you there.

District X – Kőbánya

Industrial, isolated, and way out of the way. I lived here briefly and wouldn’t recommend it to anyone without a car and a reason. It’s where breweries and warehouses live – not travelers.

Outer Districts (XV–XXIII)

The further you go out, the more you’ll find residential blocks and local life – great if you’re moving here, not ideal if you’re trying to see the city. You’ll spend more time on public transport than actually exploring.

Budapest Neighborhood FAQs

Match the Neighborhood to Your Trip

At the end of the day, where you stay should match how you travel. If you’re here for the big sights and Budapest’s best-known spots, District V or VII makes a great base. Want something slower, more local? Újlipótváros or Ferencváros might be a better fit. On your second (or third) visit? You’ve got room to branch out – maybe even stay in Buda or plan a few day trips from Budapest.

This guide isn’t about the “best” neighborhood in a vacuum, it’s about what’s best for you. Whether Budapest is one stop on a longer Europe itinerary or the whole trip, choosing the right base can make all the difference.