Where to Stay in Budapest for Christmas Markets – 7 Best areas

In this article, we will look at the best areas to stay in Budapest for Christmas Markets, how to get to the Christmas Market, and the best hotels in Budapest for all budget travelers.

Budapest is a fantastic destination for experiencing the magic of Christmas markets. The city comes alive with festive decorations, holiday lights, and a variety of stalls selling traditional Hungarian crafts, food, and gifts. 

Some of the best Christmas markets in Budapest are:

  • Vörösmarty Square Christmas Market
  • Budapest Basilica Christmas Market
  • Christmas Fair at Gozsdu Udvar
  • Advent Feast at the Buda Castle
  • Óbuda Christmas Market

Beyond the markets, Budapest is beautifully illuminated during the Christmas season. Take a stroll along the Danube promenade to see the city’s iconic landmarks, such as the Parliament building and Chain Bridge, adorned with festive lights.

Budapest’s thermal baths are a great way to relax and warm up during the winter months. Visiting places like the Széchenyi or Gellért Baths can be a unique way to experience Budapest’s culture while staying warm.

Check if there are any performances of Tchaikovsky’s Nutcracker at Budapest’s theaters during your visit. It’s a classic Christmas tradition that can add a touch of magic to your trip.

Budapest can get quite cold in December, so be sure to dress warmly. Also, the markets can get crowded, so plan your visit during non-peak hours if you prefer a more relaxed experience.

Where to stay in Budapest for Christmas Markets?

The best areas to stay in Budapest for Christmas Markets are Vörösmarty Square/ District V,  St. Stephen Basilica/ District V, Buda Castle/ District I, Erzsébetváros/ District VII, Újlipótváros/ District XIII, Terézváro/ District VI., and Ferencváros/ District IX. 

In general, Lipótváros-Belváros (District V) and Buda Castle (District I) are the best areas to stay in Budapest for tourists and travelers. They have super central locations and offer easy access to major attractions and christmas markets.

Map of the best areas in Budapest for Christmas Markets:

Map of the best areas to Stay in Budapest for Christmas Markets
Map of the best areas to Stay in Budapest for Christmas Markets

How to get to the Budapest Christmas Market?

Budapest Ferenc Liszt International Airport is the main international gateway to the city. From the airport, you can reach the city center by taxi, airport shuttle, or public transportation.

Budapest has several train stations, with Keleti being the main one for international arrivals. You can reach Budapest by train from many European cities, including Vienna, Prague, and Bucharest.

Budapest has an efficient public transportation system that includes buses, trams, trolleys, and a metro system. You can purchased at ticket vending machines, metro stations, or from ticket agents. Be sure to validate your ticket before boarding.

The city has three metro lines (M1, M2, and M3). The metro is a quick way to get around the city center. Tram 2 along the Danube River offers scenic views of the city.

Budapest has a funicular railway to Buda Castle, as well as a chairlift to the Buda Hills. These provide great views of the city.

The central areas are pedestrian-friendly, and many attractions are within walking distance of each other. Walking is an excellent way to discover the city’s charming streets and architecture.

7 Best areas to stay in Budapest for Christmas Markets:

1. Vörösmarty Square/ District V

Vörösmarty Square (Vörösmarty tér) is one of the best areas to stay in Budapest during the Christmas season as it is home to one of the city’s most iconic Christmas markets. 

Vörösmarty Square is in the heart of Budapest’s District V (Belváros-Lipótváros), which is the downtown area and the central business district. You’ll be within walking distance of popular sights like the Danube River, Chain Bridge, and the Hungarian Parliament Building.

Vörösmarty Square hosts the Budapest Christmas Fair, which is one of the most famous and vibrant Christmas markets in the city. You’ll find numerous stalls selling traditional Hungarian crafts. Don’t miss trying Hungarian specialties like kürtőskalács (chimney cake), mulled wine, and other delicious treats.

Vörösmarty Square’s central location also offers easy access to the popular Xmas Market in Fashion Street/Deák F. Str., Advent Budapesten Wineter Festival, and the Christmas Fair at the Basilica.

One of the most iconic landmarks on Vörösmarty Square is the Gerbeaud Café, known for its exquisite pastries, cakes, and coffee. It is a beloved spot for those seeking a taste of traditional Hungarian desserts.

Vörösmarty Square is well-connected to public transportation, and close to the Deák Ferenc Square, which is a major interchange for the city’s metro lines.

Best places to stay in Budapest in District V for Christmas Markets:


2. St. Stephen Basilica/ District V

St. Stephen’s Basilica, known as “Szent István Bazilika” in Hungarian, is a prominent and iconic Catholic cathedral located in the very center of Budapest. The square in front of St. Stephen’s Basilica hosts a popular Christmas market during the holiday season. 

Christmas Fair at the Basilica is known for its stunning Christmas tree and ice skating rink, creating a picturesque setting. You can explore stalls selling handmade crafts, foods, and festive beverages.

Staying near St. Stephen’s Basilica puts you within easy reach of other key Budapest attractions, such as the Hungarian Parliament Building, Vörösmarty Square, and the Danube River. 

Best places to stay in St. Stephen Basilica for Christmas Markets:


3. Buda Castle/ District I

Staying near Buda Castle in District I of Budapest during the Christmas season offers a unique and enchanting experience. Buda Castle is on the Buda side of the city, providing a different perspective on the holiday festivities.

Buda Castle is a UNESCO World Heritage Site and a symbol of Budapest’s rich history. Staying in this district allows you to explore its medieval streets, historic buildings, and stunning architecture. The castle itself is beautifully illuminated during the holiday season, creating a magical ambiance.

In and around Buda Castle, you’ll find the Castle Hill Christmas Market. This market offers a more intimate and historical setting compared to some of the larger markets on the Pest side of the city.  

Buda Castle is located on a hill overlooking the Danube River, providing spectacular panoramic views of the city. The views are especially beautiful at night when the city is illuminated for Christmas.

Staying near Buda Castle puts you within easy reach of other attractions in the Castle District, such as Matthias Church (Mátyás-templom) and Fisherman’s Bastion (Halászbástya), both of which are beautifully decorated for the holiday season.

Best places to stay in Buda Castle for Christmas Markets:


4. Erzsébetváros/ District VII

Erzsébetváros, also known as Elizabeth Town, is the seventh district of Budapest (District VII). Staying in Erzsébetváros during Christmas is an excellent choice for visitors who appreciate a diverse and vibrant nightlife during the festive season.

It offers easy access to the Liszt Ferenc Square Xmas Market and Szimpla Kert, which is a well-known ruin bar, and during the Christmas season, it often hosts a Christmas market. 

Szimpla Kert christmast market offers a more alternative and bohemian take on the traditional Christmas market experience, with eclectic stalls, live music, and a hipster vibe.

Erzsébetváros is home to the historic Jewish quarter, which is beautifully decorated for the holiday season. The district has a unique blend of traditional Jewish culture and contemporary influences, creating a distinct and charming atmosphere.

Erzsébetváros is famous for its street art and murals. Exploring the streets during the Christmas season allows you to enjoy these artistic expressions, which often complement the festive decorations.

This district is well-known for its lively nightlife and famous ruin bars. During the holiday season, these venues often host themed parties and events, providing a festive and energetic atmosphere for those seeking nighttime entertainment.

The Dohány Street Synagogue, one of the largest synagogues in Europe and a significant Jewish heritage site, is in this district. The synagogue and its surroundings are beautifully decorated during the Christmas season, providing a unique and serene setting.

Best places to stay in Budapest in Erzsébetváros for Christmas Markets:


5. Újlipótváros/ District XIII

Újlipótváros, also known as District XIII, is a residential district in Budapest located on the Pest side of the city, north of the city center. While it might not be as central as some other districts like District V or District VII, staying in Újlipótváros during the Christmas season can offer a quieter experience. 

The district is located along the Danube River, and you can take leisurely walks along the river promenade, enjoying the scenic views and the holiday decorations that line the riverbank.

While Újlipótváros might not have the large, bustling Christmas markets of the city center, you may find smaller, local markets with a more community-oriented feel. These markets often feature handmade crafts and artisanal products.

Best places to stay in Budapest in Újlipótváros for Christmas Markets:


6. Terézváro/ District VI

Terézváros, also known as District VI, is a central district in Budapest, known for its elegant architecture, cultural attractions, and vibrant atmosphere. Staying in Terézváros during the Christmas season offers a mix of classic Budapest charm and holiday festivities. 

Andrássy Avenue, a tree-lined boulevard and a UNESCO World Heritage site, is beautifully decorated during the Christmas season. The elegant architecture, historic buildings, and festive lights create a magical atmosphere.

While Terézváros itself may not have its own large Christmas market, it is centrally located, and you can easily access major Christmas markets such as the one at Vörösmarty Square and St. Stephen’s Basilica.

The district is home to the House of Terror Museum, Hungarian State Opera House, and Liszt Ferenc Academy of Music. These venues often host special holiday events and performances during Christmas.

Terézváros is home to City Park (Városliget). These areas may be beautifully decorated for the holidays, providing a tranquil escape from the city’s hustle and bustle.

Best places to stay in Budapest in Terézváro for Christmas Markets:


7. Ferencváros/ District IX

Ferencváros, also known as District IX, is a diverse and dynamic district in Budapest, known for its rich history, cultural attractions, and the Danube River waterfront. Staying in Ferencváros during Christmas offers a local and authentic Budapest experience.

Fővám Square Christmas Market typically features stalls selling handmade crafts, traditional Hungarian food and drinks, and various holiday-themed products.

Great Market Hall (Nagyvásárcsarnok) is one of Budapest’s iconic landmarks, and it’s beautifully decorated for Christmas. You can explore the market’s festive stalls and shop for unique holiday gifts and traditional Hungarian foods.

The district is home to the Zwack Unicum Museum and the National Theater. Check for special holiday events and performances at these venues during Christmas.

Kálvin Square is another prominent area in District IX, and it’s often decorated for the holidays. It’s home to historic buildings and the Hungarian Reformed Church, which adds to the district’s charm.


See more: Where to Stay in Budapest First Time

In conclusion, the best places to stay in Budapest for Christmas markets are Vörösmarty Square/District V,  St. Stephen Basilica, Buda Castle/District I, Erzsébetváros/District VII, Újlipótváros/District XIII, and Terézváro/ District VI. They offer easy access to major markets on foot and by public transportation. 

About Author: Linda Smith

I'm Linda Smith, the Hotel Expert, an experienced travel blogger who passionate about traveling. I'm here to share with you all my travel experiences and tips. I cover a wide range of travel topics, specializing in sharing information about the best areas, neighborhoods, and hotels in each city. I hope all these things will make your travel easier.

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