Choosing where to stay in Budapest can make all the difference; pick the right area, and every corner of the city becomes an adventure waiting to be explored.
Budapest is a metropolis of wide avenues, labyrinths of thermal baths and street music rhythm that can keep you hooked as soon as you set foot over the Chain Bridge. The big question for first-time visitors is where to stay in Budapest. The city is divided into 23 areas (or kerulake), each of which possesses its own character, and the decision you make will determine how quickly your visit will be, how much money you will spend, how many times you will be on the tram at night, or walk through the park.
I have spent a thousand evenings strolling the cobblestone lanes of the Jewish area, drinking a cool Szekely in the city centre and riding the tram to the castle area of Buda, all on a shoestring budget. There, I learned that walking in the middle of Budapest is the cheapest, safest, and most fulfilling way to explore a walking neighbourhood. The transport system is fine and cheap, with a 24-hour ticket costing only 7.50 euros and trams operating every few minutes. Even at night, there’s no need to run after a taxi.
When you happen to be a UK traveller, you will realise that most of the world-renowned attractions (the Parliament, Fisherman Bastion, Andrassy Avenue) are within a 10-minute bus ride or a 20-minute stroll of the city centre. The central districts are also characterised by hotels that offer free Wi-Fi and breakfast, making them good value. You can make your own food, which is a massive time- and money-saving trick, in case you wish to purchase groceries at a nearby supermarket or a 24-hour supermarket, such as Tesco or Lidl.
As a Low Cost Vibes travel expert, I will take you through the five best areas to stay in Budapest in the section below, share my personal experience, offer budget suggestions, and outline the advantages and disadvantages of each area. I will also briefly cover other neighbourhoods you can look into, demonstrate how to get the best deals and conclude with some questions and answers so that you have all the information you need to settle on the best place to stay in Budapest.
Where to Stay in Budapest
District V Belváros (City Centre)
Belváros, or the City Centre, is the heart of the city of Budapest. As soon as I got out of the metro into Vörosmarty Square, I could feel the pulse of the city, cafes, street performers and the murmur of the river. It is the most walkable area of the city and home to the Parliament, the Basilica of St. Stephen, and the Chain Bridge, all within a 20-minute walk. I spent one entire afternoon wandering from one sightseeing spot to another, pausing to taste languos at a small stall on the street, inexpensive, delicious and a neighbourhood speciality.
- Ideal for: Sightseeing, couples, nightlife.
- Advantages: Well-centred location, well-developed public transport, numerous cheap restaurants and bars (particularly, the ruin pubs), and a safe and vibrant environment.
- Cons: May become very busy and touristy, particularly on weekends; there are not many hostels or other budget-friendly hotels, and they are not always in modern buildings with all the facilities.
I reserved a small boutique B&B that offered free breakfast at a last-minute low price, which saved the day after a day of sightseeing. Each day, I would walk to a local coffee shop in the mornings, where I would frequently engage other travellers in conversation, and they were all willing to offer tips.
The nightlife in Budapest is renowned, featuring unique venues such as Szimpla Kert, the city’s oldest ruin bar, known for its vibrant atmosphere and lively crowds enjoying concerts, film screenings and club nights, according to Ruin Bars Budapest. Whether you prefer the novelty of a bustling ruin bar or an upscale cocktail lounge, you will have no trouble finding somewhere to unwind after dark. If you are travelling on a budget, many hostels or budget hotels offer free city tours or even spare walking shoes, making it easier to save some money while exploring the city.
District VI – Terézváros
Terézváros is an amalgamation of beauty and power. I initially learned about it when walking past the Hungarian State Opera House, where the chandeliers were golden and which gleamed in the night sky. The area has a reputation for fancy cafes, designer shops, and a wide array of shops along Andrassy Avenue, a UNESCO World Heritage landmark. It is also an experience to walk along the avenue, with its grand architecture and small cafes offering free Wi-Fi and a good place to take a lunch break.
- Ideal for: The couples, fashion enthusiasts, and people seeking a more relaxed, but still elegant atmosphere.
- Advantages: Good access to the metro (Metro Line 4), nice streets, and a variety of guesthouses of all kinds, which cost a lot less and still provide the feeling of a luxury hotel.
Some streets in this area can feel quieter in the evenings compared to the City Centre, and certain attractions, like the thermal baths, might require a short tram ride. These thermal baths are especially popular during the colder months, and their appeal is one of the reasons highlighted in the Budapest winter travel guide.
The sight of Buda and Pest at dusk, being illuminated, is something to remember. To ensure convenience, I booked a 3-star hotel that included a complimentary hostel-style breakfast and offered free tram tickets for a week, which is an excellent deal for someone visiting Budapest for the first time. The street food scene is vibrant: you can try kürtőskalács, or chimney cake, a sweet pastry made from dough wrapped around a spit, grilled, and coated in sugar, from a street stand while enjoying the views of the city, according to Budapest tours.
District VII – Erzsébetváros (Jewish Quarter)
Erzsébetváros is a busy Jewish Quarter that serves as a cultural centre and offers well-crafted nightlife. The first night was spent sipping absinthe in a bar that proclaimed itself one of the original ruin pubs, just next to the Great Synagogue on Dohany Street. It is a walking district, and in half an hour you can reach the Gellért Baths or the Szechenyi Thermal Bath, which is known worldwide.
- Ideal for: Nightlife, families (daytime), couples.
- Advantages: Cheap hostels and luxury hotels, excellent street food, excellent nightlife, and readily accessible Buda, either by trams or a brisk walk across the Chain Bridge.
- Cons: There are some very nocturnal places, parts of which are a bit overrun with tourists, so where we would like a quiet night in the main ruin bars, we take accommodation a bit out of the centre of things in case we want quieter nights.
I was staying at a small, family-owned hostel that provided me with a free breakfast and a free city map. In the daytime, I went to the old synagogues, the Museum of Fine Arts and exchanged stories with people about the best pastry in Hungary– the parlak. The ruin bars were also turned into a toyland at night, particularly Szimpla Kert, where the beer was as cheap as a few euros. My phone was never low, and I took the tram instead of walking late at night, which is one of the etiquette rules that tourists in Budapest have to follow.
District I – Castle District
On the Buda side of the Danube, the Castle District is a stone-and-wood wonderland with medieval castles and beautiful panoramic views. According to Xinhua News Agency, the Buda Castle Hill Funicular, a well-known tourist attraction in Budapest, has been operating for 150 years and connects the city centre with the castle district. Taking this funicular up into the district offers a memorable view of the city skyline as it changes. It highlights the area’s hilly character, with each turn often revealing a charming coffee shop or a hidden garden.
- Ideal for: History lovers, families, couples.
- Advantages: Walkable neighbourhood, lots of free walking tours, beautiful scenery and cheap guesthouses that include breakfast.
- Disadvantages: There are fewer cheap hostels, and most hotels are in older buildings with limited facilities.
My best evening was a walk on Buda Castle Road, where you can see the reflection of the Parliament building across the Danube on the Pest side, according to information from Wikipedia. I have also been staying in a cheap guest house whose owner provided me with a free ticket to the tram the following week- this is just a mere thing that saved me money and time. The street food culture in the area is quite amiable, with the local cica (small sausage rolls) and főzelék (vegetable stew) being the locals’ favourite dishes. If you have a limited budget, I suggest you book a room with a shared kitchen so you can cook your own food and avoid spending money on eating out.
District IX – Ferencváros
Ferencvaros is a trendy, mixed neighbourhood characterised by an artistic atmosphere and the renowned Café Gerbeaud. I initially fell in love with the district as I walked along the Danube promenade, at the meeting of the city skyline and the river. It is a bit more remote from the city centre, yet the tram system is frequent, and the 24h tram schedule means you can commute without any inconvenience at any time, as detailed by the Budapest Transport Centre (BKK).
- Ideal for: Nightlife, families, couples, students.
According to MyBuda, the Jewish Quarter in Budapest offers lively nightlife, trendy bars, affordable hostels, proximity to the vibrant Central Market Hall, and a dynamic cultural scene. While it can be a bit quieter at night compared to other areas, the neighbourhood remains energetic and active even after 10 pm.
I had reserved a youth hostel on a quiet street, with free breakfast and a common kitchen. In the morning, we visited the House of Terror Museum, and in the evening, we went to the microbrewery area, where local craft beer costs only a few euros. The city also makes Ferencvaros a wonderful place to stay with the family, as there are numerous parks and playgrounds, and the streets are full of child-friendly cafes where children can use free Wi-Fi and relax in a peaceful atmosphere.
Other Neighbourhoods in Budapest’s
District III – Óbuda on the Buda side is a good option for quieter accommodation, an old-town feel, a calm ambience, and lots of green areas. For travellers watching their budget, Flow Hostel in District IX offers an affordable stay with dorm beds starting at €9 during the quieter seasons, according to VisitCity. It is located near the Central Market Hall in a renovated building, providing a relaxed atmosphere for meeting fellow travellers without the usual party scene.
In choosing between the hostels, the hotels and the apartments, consider your priorities:
- Hostels: Ideal when meeting new people, free internet access, and free breakfast. Search for those with a kitchen or a shared BBQ if you want to save on food.
- Hotels: Select the pre-paid hotels with free breakfast or free ticket on the tram; there are many of them in the centre of the city.
- Apartments: Ideal for families or groups; you will be able to prepare your meals and save money in restaurants.
Use trusted websites or let us know your requirements. Reserve in advance (during the summer in particular) and look at the reviews- check whether there are comments about safety, cleanliness, and access to transport. To get last-minute discounts or more information, visit our website.
Conclusion
The question of where to stay in Budapest is like a maze, but once you have an idea, it becomes easy. The place to see, where to party, and get a real city-centre experience is District V (Belváros). Terézváros is slightly less busy and a little more upscale, which suits the needs of couples who do not want to spend a fortune but still want to enjoy a touch of luxury. There is the playground of the night owls, Erzsébetváros, and the history-filled backdrop of the Castle District, which is family-friendly. Lastly, Ferencvaros offers a vibrant atmosphere and great value to students and young travellers.
Regardless of the district you settle in, you should bear in mind that transportation in the country is affordable, secure, and effective; hence, you can always board a tram or metro to get to other areas of the city. And if you have a limited budget, you can seek a place to stay that offers breakfast, or even a free tram. These little things will help save you a lot.
As a Low Cost Vibes travel expert, I observed that the best area to stay in Budapest is one where one can absorb the culture without hurting the wallet. Whether you’re searching for the best hotels in Budapest or exploring the best places to stay in Budapest, choosing the best part of Budapest to stay corresponds to your interests is key. Select a district that matches your preferences, go for comfortable shoes and unlimited walks, thermal baths, and a variety of cultural food markets, which are the reasons why Budapest is a city of endless discoveries.
FAQs about where to stay in Budapest
My experience with Budapest has shown it to be quite pocket-friendly for UK travellers. Although some of the city’s significant sights may charge a small admission fee, the total cost of accommodation, food, and transport is lower than in London or Paris. A cheap hotel within the centre will cost as low as 30 bowls a night, and an average dinner at a local kiosk (street food stand) will run between 6 and 8 bowls.
There are cheap trams and buses, so with a 24-hour ticket, it costs only 7.50 (approximately 6), and passes are available at metro stations. It is not difficult to bring a UK budget to a 7-day trip, provided, of course, that you are careful with where you eat (dining at the local kiosk or grocery store will do) and rely on the public transport network.
The most convenient is District V -Belvaros (City Centre) for first-time visitors. A few things, such as the Parliament and the Chain Bridge, are walkable, and there is close transport. The neighbourhood is secure, bright and has cheap cafes and hostels. You can have easy access to the key attractions, take numerous free walking tours, and enjoy vibrant nightlife without travelling much.
Yes! Ferencvaros (District IX) and the Castle District (District I) are both family-friendly. The Castle District offers walking tours, parks, and the historical Buda Castle grounds, all free of charge. Ferencváros is a casual area near the Great Market Hall, where fresh fruit and local snacks are available. Find guest houses or apartments with a kitchen so you can cook with the children and not spend much money.
Very easy. The system of transportation in Budapest, trams, buses and metros, is integrated, reliable and cheap. It costs 2.40 per ticket for 20 minutes, and an unlimited 24-hour pass will cost 7.50.
According to Budapest.com, from June 2025, the operating hours for the M2, M3 and M4 metro lines will be extended, making it easier to travel late at night. If you are staying in a walkable part of the city, you may not need to use trams or the metro for most of your journeys.
The best ones are Erzsébetváros (Jewish Quarter) and District 5 (City Centre). Erzsébetváros boasts of ruin pubs (Szimpla Kert, Instant, etc.) and has a colourful, diverse nightlife. The streets of District V (particularly around the Opera House and the Danube promenade) are vibing at a slightly higher level, with fancy cocktail bars and live music joints.
According to Travel Budapest Guide, the nightlife areas in Budapest’s 7th district are lively, well-lit, and safe to explore into the early hours, making them a great choice for couples looking to enjoy themselves after a day of sightseeing.
