Time Out magazine rounded up the planet's coolest neighbourhoods, and guess who made the list? Budapest's Palace Quarter landed in 31st place. Here's why.

Time Out has just released its annual list of the world's coolest neighbourhoods, celebrating districts where culture, community spirit, nightlife, food and drink come together to create a truly unique vibe and a 'one-of-a-kind local flavour'. And Budapest joined this illustrious bunch! The Palace Quarter now stands alongside Marseille's Notre-Dame-du-Mont and Bali's Pererenan. And we couldn't agree more.

Stretching from the Hungarian National Museum to the Grand Boulevard, this area is one of our favourites too. It offers everything from a regal atmosphere to hidden tapas bars and the city's most beautiful library. Brimming with bars and university students, its once-shiny palaces may have faded, but the neighbourhood still exudes a vibrant, even romantic charm.

Regal as it may seem, Budapest's Palace District has only recently regained its sparkle. New life now fills the historic villas where horse-drawn carriages once brought in noble parliamentarians from their country estates in the 1800s. The upper house operated from the landmarkNational Museum here, the lower from today's culturally activeItalian Institute opposite. Relandscaped with a children's playground and a sit-down pastry shop run by venerable confectioners,Auguszt, the museum gardens provide a pretty gateway to an intimate cluster of once foreboding streets. The cafés, galleries and craft boutiques of Bródy Sándor utca and Kálmán Mikszáth tér, patronised by students from nearbyELTE University, attract custom and chatter by day and live happenings and exhibition openings after dark.

Time Out's global editors also shared some more insightful recommendations for each neighbourhood. For the Palace Quarter, they highlighted the fairly new The Garden Café, where Turkish specialties await inside the super cool boutique hotel Brody House. Other must-do activities include browsing vinyl at Kalóz, shopping for vintage clothes at Typo Showroom, and sipping natural wine at Charbon Art Café. Art lovers should check out Ani Molnár Gallery, while Főfotó is a must for photography enthusiasts. And if you're up for some bar hopping, the article suggests Jaromír a Templomhoz, Fecske, and both Lumens.

These vibrant spots are definitely worth marking on your Google map. And if you'd dive deeper, you'll find more tips in our previous article on the district here and here. Don't forget to check out the full Time Out list here.

(Cover photo: László Balkányi - We Love Budapest)

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