Top 5 Neighborhoods to Discover in Budapest

From the grand monuments of Castle Hill to a revitalized industrial area along the Danube, each neighborhood in Budapest possesses its own unique charm, transforming as you move from one kerület (district) to the next. Similar to the arrondissements in Paris, the districts spread out in a clockwise manner, starting from Buda (districts I and II), then to Óbuda Island (III), and finally across Pest (IV to XXIII, including Csepel, District XXI).

This layout makes navigating the Hungarian capital fairly straightforward, though travelers may not explore all 23 districts. Use this guide to pinpoint the best neighborhoods to visit in Budapest.

Wander around the turrets of Fisherman's Bastion for stunning views of the Danube. ZGPhotography/Shutterstock

District I: Castle Hill

Ideal neighborhood for history enthusiasts

Castle Hill boasts cobblestone streets, remnants from the Ottoman era, and majestic Habsburg palaces, offering a rich tapestry of history. Among its medieval treasures is the Hospital in the Rock, an underground hospital that served during WWII and the 1956 Revolution, which faced brutal suppression by the Soviet Union.

Start your day with a refreshing dip in the thermal baths beneath the Ottoman domes of the Rudas Baths (note: certain days are designated for single-sex use). Stroll through the Tabán area to Krisztina tér for an indulgent brunch at Bistro Déryné. Afterward, hike up to Buda Castle to explore the Hungarian National Gallery or the Castle Museum. Satisfy your sweet tooth with a rich cream cake from Ruszwurm Cukrászda, the city's oldest patisserie, before visiting the Fisherman’s Bastion for stunning views of the Danube.

In the evening, meander through the charming streets, searching for a 14th-century synagogue, the ruins near Buda Tower, and the grave of Abdurrahman Abdi, the last Pasha (governor) of Buda. Conclude your day with a glass of wine at Pierrot, an exceptional Hungarian–French fusion restaurant set in a former medieval bakery.

District V showcases remarkable architecture, including St. Stephen’s Basilica. posztos/Shutterstock

District V: Belváros and Lipótváros

Premier neighborhood for architecture and design enthusiasts

Remnants of Pest’s ancient city wall can still be spotted around District V, which now boasts elegant residences and landmarks like the Parliament and St. Stephen’s Basilica. While some facades bear scars from the 20th century’s turmoil, contemporary design emerges amidst the historical backdrop with stylish design hubs and trendy cafés.

Start your day at Szimply Food for a delicious brunch and grab a coffee next door at Kontakt. Avoid the paprika-filled tourist shops on Váci utca and explore Hungarian design at MONO Art and Design and Paloma on Kossúth Lajos utca, or check out unique handmade vintage stationery at Bomo Art. Later, stroll north along the river to the touching Shoes on the Danube memorial before heading towards the impressive Hungarian Parliament.

Take a break for a snack at the market on Hold utca, but first, appreciate the stunning architecture of Ödön Lechner’s art nouveau Postal Savings Bank. Treat yourself to dinner at the Michelin-starred Costes Downtown, or explore the Gastronomic Quarter in the Kempinski Hotel Corvinus. Conclude your evening with cocktails at sunset from The Duchess, a secret rooftop bar above the stylish Matild Palace hotel.

The iconic Szimpla Kert pioneered the ruin bar scene in Budapest. albertolpzphoto/Shutterstock

District VII: Erzsébetváros and the Jewish Quarter

Best neighborhood for Jewish heritage

District VII beautifully blends a rich history with vibrant modern life, featuring remnants of a former Nazi ghetto where synagogues stand alongside crumbling ruin bars, lively party hostels, and unique design boutiques.

Start your day with breakfast at Tel Aviv Cafe before diving into the neighborhood's Jewish history at the Great Synagogue on Dohány utca, the Orthodox Synagogue on Kazinczy utca, and the neo-Moorish synagogue on Rumbach Sebestyén utca. Then, visit Printa for silkscreen prints, design, and upcycled fashion. For lunch and coffee, head to the trendy Gozsdú Udvar, a series of interconnected courtyards once part of the Jewish ghetto. Don’t forget to check the ghetto wall memorial at number 15 Király utca.

Before hitting the ruin bars, grab a quick snack at Bors Gasztro Bár or enjoy upscale dining with an Israeli flair under the illuminated trees at the charming Mazel Tov. Indulge in drinks at Szimpla Kert, the city's first and most renowned ruin bar, set in a weathered apartment complex filled with eclectic decor. Continue your night at Instant–Fogas, Budapest's largest ruin bar, located in a former dental clinic, featuring seven dance floors and 18 bars playing everything from house and Latin to underground electronica and rock.

The neoclassical facade of the Hungarian National Museum. Arsenie Krasnevsky/Shutterstock

District VIII: Józsefváros

Best neighborhood for artistic souls

Once shunned by travelers, District VIII has evolved. While the outskirts still show some wear, the heart of the district is home to the Palace District, named for the grand apartments that were once the residence of Budapest’s 19th-century aristocrats. This area also played a significant role in the 1956 Revolution, with the initial shots fired at the former Hungarian Radio Headquarters on Bródy Sándor utca.

Start your day with a coffee at Lumen, a beloved local roastery and café, before admiring the Italian-inspired architecture around Mikszáth Kálmán tér, a favorite spot for vintage shoppers. Explore the quirky Vintage Shop across the Grand Boulevard (Nagykörút) or visit the Typo Showroom for a blend of vintage and contemporary designs. Don’t forget to look up as you walk, especially at the beautifully detailed Ervin Szabó Library, showcasing exquisite architectural features throughout the neighborhood.

In the afternoon, stop by Budapest Bagel for a quick snack before visiting the neoclassical Hungarian National Museum. Don't miss the stunning Venetian-Moorish-style Uránia Cinema for an arthouse film or simply to enjoy a cup of tea in the café. For a vibrant dining experience, Café Csiga is perfect, followed by drinks with the creative crowd at one of the local bars.

Check out the alternative Auróra, the district's cultural hub featuring a hidden courtyard bar. Further afield, you'll find Gólya, a cooperative bar set in a repurposed factory, hosting live music, lectures, exhibitions, and movie nights. Though it has an underground vibe, expect a friendly atmosphere.

Discover the tale of Hungary's most renowned liqueur at the Zwack Unicum Factory. Andocs/Shutterstock

District IX: Ferencváros

Top neighborhood for modern art enthusiasts

Once an overlooked industrial zone, Ferencváros is now attracting attention for its cultural hub featuring the National Theater, the Palace of Arts, and the Ludwig Museum of Contemporary Art. It’s earned the title “Craft Beer District” due to its concentration of bars serving local brews.

Awaken your senses beneath the ornate iron pillars of the Central Market Hall, where you can find paprika, Hungarian memorabilia, or a quick snack. Stroll along the Danube to the Bálna, a sprawling glass structure integrated with brick buildings that hosts cafés, restaurants, galleries, and shops. Enjoy lunch at a nearby eatery like EscoBar, and don’t miss a digestif tour at the Zwack Unicum Factory, where you’ll discover the secrets of Hungary’s iconic bitter liqueur.

Savor a French-Hungarian fusion dinner at Petrus before ending your day with a selection of craft beers at Élesztő, a transformed glass factory offering over 25 taps. For some evening entertainment, visit Trafó, a contemporary performing arts venue located in a repurposed electric transformer building.