Budapest, Hungary’s capital, is a bustling city with a lot to offer visitors interested in history, gorgeous architecture, thermal baths, food, and nightlife. Congratulations if you’re planning a trip to this city! What a fantastic decision!

Isn’t it true that the next thing on your mind is where to stay in Budapest? And this is when I step in to save the day!

Budapest is a fairly large city. Deciding on the ideal district for your vacation can be a difficult and stressful undertaking, especially for first-timers. There are numerous places to stay in Budapest, each with its own personality and a set of advantages and disadvantages!

District Guide of Budapest

DISTRICT V / BELVROS LIPTVROS BEST AREA FOR THE FIRST-TIME

District V is located on the Pest side of the city and serves as the city’s heart and soul; in fact, “Belvros” translates to “downtown” in Hungarian. So, if you’re wondering where to stay in Budapest to be close to all of the major tourist attractions, cafes, pubs, and restaurants, this is the place to be!

The Parliament building, St. Stephen’s Basilica, and, of course, the iconic Chain Bridge are just a few of the key attractions.

However, there is one disadvantage to residing here. Because of its popularity, this sector can be fairly pricey, thus it may not be the greatest option for budget tourists who prefer not to stay in hostels.

There are so many 5-star hotels here, it’s sheer heaven for luxury travelers... and if you book them long enough ahead of time, you can even get a fantastic discount!

DISTRICT I / BUDAVR (CASTLE DISTRICT) BEST AREA FOR LUXURY

District I is located in the heart of Buda, west of the Danube River. The Budapest Castle, the Szchenyi Chain Bridge (which connects this neighbourhood to District V), the Rudas Thermal Baths, and the gorgeous historical buildings you’ll see everywhere you look are just a few of the attractions and places in this area.

District I is also a terrific spot to visit if you want to treat yourself, as it is home to some incredible luxury hotels, as well as stylish stores, pubs, and world-class restaurants. I’d strongly suggest it to tourists who are willing to invest a little extra money for excellent treatment, as well as families travelling with children.

DISTRICT II / RZSADOMB WHERE TO STAY FOR FAMILIES

If you head north from the Castle District, you’ll find Rzsadomb, Budapest’s second neighbourhood.

This neighbourhood is ideal for those who want to avoid tourist traps and see the city through the eyes of a native!

If you ask me, I believe Rzsadomb is underappreciated. But it’s so lovely! A romantic stroll through the lovely streets, some relaxation at one of the three baths in the area: Lukcs Thermal Bath, Veli Bej Bath, or Kiraly Bath, or some local cuisine at Fny Street Market Hall are just a few of the things you can do here.

DISTRICT VI / TERZVROS WHERE TO STAY IN BUDAPEST ON A BUDGET

District VI, commonly known as Terzvros, is a great place to visit if you’re on a budget. It’s located on the Pest side of Budapest. In fact, the entire city is home to a large number of hostels, many of which are housed within super-elegant old structures!

The Szechenyi Spas, one of Budapest’s oldest and most popular thermal baths, is one of the area’s highlights. However, there are numerous upmarket and boutique businesses, as well as the Hungarian State Opera, to be found here.

Did you know that this avenue is actually a UNESCO World Heritage Site? Another benefit of living in this area is that you will be within walking distance of the city centre! What more could you possibly want?

DISTRICT VII / JEWISH QUARTER BEST AREA FOR BUDAPEST NIGHTLIFE

This is the city’s smallest neighbourhood! The New York Palace and Dohny Street Synagogue, the largest synagogue in Europe and the second largest in the world, are two of the area’s highlights.

There are also numerous nice bars and local restaurants serving international food, as well as pubs and, of course, the famed ruin bars, to be found here. If you want to be close to cheap beer and trendy nightclubs for all tastes, this is a terrific area to stay in Budapest!

DISTRICT VIII THE COOLEST NEIGHBORHOOD IN BUDAPEST

The National Museum, Natural History Museum, and Szab Ervin Library are among the neighborhood’s highlights. There are also numerous local restaurants and cafes, as well as numerous art galleries and hipster bars.

Okay, so what’s up with the neighborhood’s name? The “Palace District” is so named because there are so many palaces here, including Almssy Palace, Grf Festetics Palace, Grf Krolyi Alajos Palace, Degenfeld-Schonburg Palace, and so on.

It is recommend staying as close to the neighborhood’s core as possible, as this is the most tourist-friendly location.

DISTRICT IX – BUDAPEST FOR FOODIES

This calm area is located in Budapest’s south end, although it is still very central and close to the city’s main attractions. Everything about this city is diverse, from the activities available to the culinary selections (don’t miss the Central Market Hall, by the way), to the lodging possibilities, of course.

From local food carts serving lngos to the Michelin-starred Costes restaurant, you’ll find everything you need here. The National Theatre, Mpa Budapest, and Dandr Thermal Bath are some of the additional attractions in this area.

DISTRICT XIII / ANGYALFLD IF YOU LOVE GREEN AREAS

Despite its Pest location, District XIII has a very tranquil and domestic environment, which is typical of Buda. It’s ideal for relaxed travellers seeking open areas and lovely streets away from the hustle and bustle of the city centre.

In Angyalfld, you’ll find a plethora of excellent restaurants, local taverns, pleasant cafes, antique shops, and charming booksellers. Margaret Island (Margit Sziget in Hungarian) is also a beautiful island-park that is ideal for some leisure.

Find a wonderful stay in Budapest here!

Conclusion

I’m confident that after reading this article, you already know a lot about the 8 greatest neighbourhoods and hotels in Budapest to stay in, and that you’ve already booked the perfect spot for you from the options above.

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