Where to stay in Budapest: best areas & neighborhoods

Mar 25
4 min read

At first, we didn’t really know much about where to stay in Budapest, so we decided to keep it simple and book something central and affordable 😂

We ended up choosing a budget-friendly Airbnb on the Pest side. It wasn’t anything fancy, but the location was great and it worked perfectly for what we needed, so overall, we had a really good experience.

Since we were traveling with friends, we didn’t have super high expectations. We spent 4 days in the city, which felt like the perfect amount of time to see the main highlights.

Why staying central makes a difference

We chose to stay in a central area mainly because it was our first time in Budapest and we wanted everything within walking distance.

Also, something that really surprised us: Budapest is quite affordable compared to other European capitals, especially when it comes to accommodation in central areas.

What You’ll Find in This Guide

📍 Where to stay in Budapest – best areas

🏙️ Belváros (District 5) – central and convenient

🏰 Budavár (District 1) – historic and scenic

🍻 Erzsébetváros (District 7) – nightlife and atmosphere

✨ Our experience

Where to stay in Budapest: best neighborhoods

Here are some of the best areas to stay in:

🟠 Belváros (District 5)

This is the most central area to stay in, especially if it’s your first time in Budapest.

You’ll be within walking distance of the Parliament, St. Stephen’s Basilica, and the Chain Bridge. It’s an elegant, safe area and very well connected.

🛏️ f you’re looking for an unbeatable location, we highly recommend Anabelle Bed and Budapest: It’s right by the Danube River and one of the best-rated places in Belváros.

Belváros central street in Budapest District 5 — City view of Belváros (District 5), one of the most central areas in Budapest, close to the Danube and the city’s main landmarks.

🟠 Budavár (District 1)

Located on the Buda side, this area is home to some of the city’s most iconic spots like Buda Castle, Fisherman’s Bastion, and Matthias Church.

It’s perfect if you’re into history, culture, and waking up to amazing views.

Just keep in mind:

Buda is much quieter at night. If you’re planning to go out, you’ll probably end up crossing the bridge to Pest. But for a more romantic or relaxed stay, it’s hard to beat.

Our recommendation in Budavár:

🛏️ Váralja Home: a great value-for-money apartment with excellent reviews. Perfect if you want your own space in one of the most historic parts of the city.

Budapest funicular on Buda Hill overlooking the Chain Bridge — View from Buda Hill overlooking the Chain Bridge and the Danube.

🟠 Erzsébetváros (District 7)

This is the neighborhood known for its nightlife, bohemian vibe, and the famous ruin pubs.

If you’re looking for energy, bars, and a younger atmosphere, this is the place to stay.

Our recommendation in Erzsébetváros:

🛏️ Maverick City Lodge: a modern, stylish place with great prices. They offer both private and shared rooms, it’s super clean, and it’s literally steps away from Szimpla Kert (the most famous ruin bar). Perfect if you want to be in the middle of everything but still stay somewhere well-designed and comfortable.

café in Erzsébetváros, a bohemian area in Budapest — Outdoor café in Erzsébetváros, one of Budapest’s most lively and bohemian neighborhoods.

Our experience

From our experience, staying in the center (especially on the Pest side) made everything much easier.

We were able to walk almost everywhere, which saved time and money on transport.

If it’s your first time in Budapest, we’d definitely recommend staying central.

If you already know the city or want something quieter, then areas like Buda can also be a great option.

Travel tips – how to choose where to stay in Budapest

If you're not sure where to stay in Budapest, this is how we’d think about it based on our experience:

First time in the city: We’d definitely stay in District 5 (Belváros). It’s the most central area and makes everything super easy, you can walk almost everywhere.
If you want nightlife: Go for District 7 (Erzsébetváros). This is where all the bars and ruin pubs are, and it has a really fun vibe. Just keep in mind it can be noisy at night.
If you prefer something quieter: The Buda side (District 1) is a great option. It’s more relaxed, more scenic, and feels less touristy, but also much calmer at night.
Staying central really helps: Budapest is very walkable, so being in a central area saves you time and makes everything more convenient.
Budget-wise: Compared to other European cities, Budapest is actually quite affordable, even in central areas. So in our opinion, it’s worth spending a bit more to stay in a good location.