Budapest is a city split by the Danube, with the historic centre on both banks classified as a World Heritage Site. It has been a spa destination since Roman times and is known for its thermal springs, its café culture, its ruin bars and a food scene built on distinctive Hungarian cooking.
For a visitor, the practical division is between Buda, the hilly west bank, and Pest, the flatter east bank. The two are linked by bridges and by a metro and tram network that carries the bulk of local journeys. This guide covers which quarters to base yourself in, what each is like, and how the choice changes with your budget.
Best areas to stay in Budapest
1. Belváros (Inner City)
Belváros is the heart of Pest and the centre proper, traditionally bordered by the Kiskörút (Small Boulevard). It holds a number of major sights along with beautiful squares and cafés, which makes it the most convenient base for a first visit.
It suits first-time visitors who want to walk to the main sights and stay close to transport. You find a wide range of accommodation here, from hostels to luxury hotels. Expect the most touristed streets in the city, and note that the area sits inside the Great Boulevard, so it is well served by trams and the metro.
2. Lipótváros (Leopold Town)
Lipótváros adjoins Belváros and together they form the Belváros district. With the Parliament, a number of ministries and banking houses, it is a major political and business centre of the country, and it also has beautiful squares and cafés.
It suits visitors who want to be central but slightly removed from the busiest tourist streets, and business travellers. Accommodation spans the usual range of city hotels and apartments. It sits just inside the Great Boulevard, so trams and the metro keep the rest of Pest within easy reach.
3. Terézváros (Theresa Town)
Terézváros is the VI. district. It contains Nyugati pu. (Western Railway Station), an architectural sight in its own right, and it borders districts V. and XIII.
It suits travellers who want a central Pest base with good rail connections, and those who prefer a working quarter to a purely touristed one. You find a mix of hotels, pensions and apartments. Its position next to Belváros and Lipótváros means the main sights are within walking distance or a short tram ride.
4. Erzsébetváros (Elisabeth Town)
Erzsébetváros is the VII. district and contains the famous Synagogue on Dohány street. Parts of it are not yet renovated, so the quarter is mixed in condition.
It suits nightlife-focused visitors and budget travellers, since it is central and offers cheaper options alongside the city's ruin bars. You find hostels, apartments and hotels here. It sits inside the Great Boulevard, so trams and the metro connect it easily to the rest of Pest.
5. Újlipótváros (New Leopold Town)
Újlipótváros is the inner part of the XIII. district, just outside the Great Boulevard north of Leopold Town, with Margaret Bridge at its corner. It is considered one of the finest residential areas in Budapest, with a relaxed, inviting atmosphere and a number of restaurants, cafés and small shops. It also comprises the Vígszínház (Comedy Theatre) and a few small off-mainstream cinemas.
It suits visitors who want a quieter, more residential stay while remaining close to the centre, and those interested in theatre and smaller cultural venues. Accommodation is mostly apartments and smaller places rather than large hotels. Margaret Bridge and the Great Boulevard trams make the centre quick to reach.
6. Castle Hill and Buda
Castle Hill and the Buda side hold the historic monuments of the west bank, from Buda Castle to Matthias Church. Buda has better air quality due to the closeness of the hills and the forests lying to the west of the city.
It suits visitors who prioritise the historic core and quieter surroundings, and those who do not mind slopes. The most expensive accommodation is on or near Castle Hill. Buda is hillier than Pest, and crossing to the Pest side means using the bridges or the metro.
Where to stay on a budget, mid-range or splurge
- Budget: hostels, small cheap pensions and rented apartments; dozens of reliable backpacker hostels are mostly across the river in Pest, and apartments can be a cheap alternative for extended stays.
- Mid-range: ordinary city hotels, guesthouses and apartments in the central Pest quarters and in the quieter residential parts of Buda.
- Splurge: luxury hotels, with the most expensive accommodation on or near Castle Hill.
Best area for a first visit
Belváros is the best base for a first visit. It is the heart of Pest, includes a number of major sights, and puts beautiful squares and cafés on your doorstep. From there the rest of the centre is walkable or a short ride on the metro and trams.
Frequently asked questions
Should I stay in Buda or Pest?
Pest holds the majority of hostels and the busiest central quarters, while Buda has the historic monuments around Castle Hill and better air quality thanks to the hills and forests to the west. Buda is hillier, so choose it if you prefer quieter surroundings and do not mind slopes.
Which area is best for nightlife?
Erzsébetváros, the VII. district, is the natural choice: Budapest is renowned for its nightlife, with ruin bars playing a significant role in it, and this quarter is central and mixed in condition.
Where should I stay if I want to walk to the main sights?
Belváros and Lipótváros, which together form the Belváros district, are the heart of Pest and include a number of major sights. Terézváros and Erzsébetváros border them and are also within walking distance of the centre.
Is accommodation in Budapest expensive?
Budapest offers a wide range of accommodation in all price classes, from hostels to small cheap pensions to luxurious five-star hotels, although the costs of staying here are notably higher than elsewhere in Hungary.
Compare live prices for the areas above with the booking tools on this page before you decide.