Member of the A1 Group

Mention of the Eighth District can elicit any number of responses from a listener depending on the context. But a walk down the sunny streets of the ‘Palace Quarter’ and a visit to the newly rejuvenated Rákóczi Square will leave you with no doubt in your mind. The Austro-Hungarian empire’s legacy is more than alive in these streets, with some of the grandest urban palaces in the city to its name. Flanked by the colorful VI. district nightlife, the erudite university and museum-lined streets of the Fifth’s downtown, and the lively gastro and bar offerings of Ferencváros, the elegant Palace Quarter is a well-connected alternative to its crowded neighbors.

Top neighbourhoods

Palace Quarter, Rákóczi square, Blaha Lujza square

The Housing Market

As prices in the popular V., VI., and VII., districts rise, investors are looking south for undiscovered gems at lower prices. In particular, the downtown proximity and historic architecture of the Palace Quarter houses some of the best finds. You’ll find everything from long-term apartment rentals, to short-term AirBnB apartments, boutique hotels and hostels in the area.

Last Year Growth



Architectural Notes

The list of historic palaces in the area is impressive to say the least, boasting buildings by famed architect Miklos Ybl (the mastermind behind the Opera and the Basilica), as well as the nation’s original Parliament building. After the 1867 Austro-Hungarian compromise, the empire’s elite built 34 city palaces and mansions in the quarter, while middle-class bourgeois apartments claimed much of the rest of the area. The pompous streets of the quarter are fittingly crowned by the magnificent neo-classical Hungarian National Museum finished in 1847.

Today, successful restoration and urban investment in the area has helped distinguish the quarter from the grittier parts of the Eighth, east of József Ringroad.


One of Budapest’s best kept secrets, full of revived grand palaces and contemporary boutiques.

What to Expect

Independent and classic. The Palace Quarter is home to any number of cozy cafes, boutique hotels and eateries that delight those who make the effort to venture off the beaten track. A beautifully revitalized piece of the city’s historic legacy without the crowds and grit of the city’s downtown.

What Not to Expect

Lots of green space. Although the charming Károlyi Gardens isn’t far and the city has made generous efforts to line the streets with more trees and greenery, the quarter remains decidedly urban.