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HomeTravelPlaces to StayBudget-Friendly Areas to Stay in Kyoto for Foreigners &...

Budget-Friendly Areas to Stay in Kyoto for Foreigners & Residents

The charm of Kyoto in Japan is never just in one place. It's in the calm footsteps along a bamboo forest stroll, the smell of incense wafting over centuries-old temples, and steaming ramen bowls in secret alleyways. That's why choosing the right area matters. There are many areas to stay in Kyoto, each offering a different mood. There are more modern and lively areas, whereas others overflow with history and wooden townhouses. Deciding where to base yourself isn't just about convenience; it's about deciding what you want Kyoto to feel like each day. Will you wake up near peaceful gardens or in the heart of a bustling shopping street? The area you choose is more than finding a place to sleep; it becomes part of the story.

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1. Downtown Kyoto

Downtown Kyoto is located in the city's center on the west bank of the Kamo River. It includes the old Ponto-Chō Geisha neighborhood and the modern Shijo Kwaramachi commercial district, which has Kawaramachi-dori as its major street. Famous landmarks include the Kyoto International Manga Museum, Kyoto Samurai, and the Ninja Museum. For good reason, most tourists who come to Kyoto decide to stay here. There are some nice hotels here, and the region provides a lovely escape from the temple-seeing.

This is the place to stay if you want to be close to hundreds of stores, malls, restaurants, pubs, food markets, and a lively nightlife. We believe Downtown Kyoto is among the best places to stay in Kyoto. Staying in this neighborhood puts you close to two of Kyoto's most well-known tourist destinations, Northern Higashiyama (home to numerous temples) and Southern Higashiyama. This area is also crossed by the city's two primary subway lines, the Tozai Subway Line (east to west) and the Karasuma Subway Line. These two lines meet at Karasuma Oike Station, in downtown Kyoto's heart. A few train lines and numerous bus routes go through the region, making it convenient to navigate the rest of the city.

2. Northern Higashiyama

Northern Higashiyama is situated north of Southern Higashiyama. It’s one of the best areas to stay in Kyoto. It is a more traditional city area, with many notable attractions such as the picturesque Philosopher's Path and the numerous Kyoto temples that line it from Nanzenji to Ginkakuji. There are peaceful temples in green areas even further north—you'll enjoy escaping the crowds during Kyoto's cherry blossom season.

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The benefit of staying in Northern Higashiyama is that there are many temples to see, and you can get there early before the crowds gather. It is also a quieter, greener region than the ones listed before. The drawbacks include fewer restaurants (though there are some outstanding options, such as Monk, our favorite restaurant in Kyoto. The transportation options are limited, so you'll likely have to use the bus (or taxi). You'll enjoy strolling in this neighborhood, which is extremely fun. There aren't many hotels in the neighborhood. Therefore, accommodations are more pricey.

3. Central Kyoto

Our next pick is Central Kyoto. We're mainly talking about the eastern portion of Nakagayo Ward here, north of Kyoto Station and extending to the southern border of the Kyoto Gyoen National Garden. This is mostly a business district, but there is enough for tourists and residents. The most notable attraction is Nijo Castle, which has gigantic halls and spacious grounds.

In addition, there are several dining options (Nishiki market), nightlife along Pontocho Alley), and shopping ( Teramachi pedestrian street). Kyoto's public transportation system makes it easy to visit famous landmarks like Kiyomizu Temple and the Kyoto Imperial Garden. Don't miss the opportunity to try some delicious kaiseki cuisine at a Michelin restaurant like the Kyoyamato Restaurant. This neighborhood also has strong transportation connections to the rest of the city (although not as handy as Kyoto Station proper). If you want easy access to the subway, look for a location near the Karasuma Oike station.

4. Gion

When planning your Kyoto itinerary, consider staying in the Gion district, known for its traditional Japanese lodging and geisha culture. You can always stroll through the beautiful Murin-an garden and enjoy a relaxing hot spring bath after a long day of exploring. Gion has long been known as a center of entertainment, dating back to the Sengoku Warring States period (1467–1615). Geisha, or “women of the arts” as they are known locally, entertained the ruling classes in this lively teahouse district over the ensuing generations.

Walking around Gion's gloomy streets is part of the charm, though tourists should be aware that pointing your camera toward the resident Geiko uninvited is a punishable violation. Among the landmarks is the 7th-century Yasaka Shrine, a shining vermilion structure devoted to Susanoo, the younger brother of Amaterasu, the sun goddess.

The Minamiza Theater beside the river is excellent for learning about classic kabuki. Studio Shiki offers a range of options for adults and children, including period-style clothing that you may rent if you wish to go further with your cultural immersion. Gion is also one of Kyoto's best places to stay. It is situated on the banks of the Kamo River, making it easy to stroll to the Higashiyama hills, the center of Kyoto, and Ponto-chō on the other side of the river. Some of the exquisite short-term rentals in Gion accept reservations from larger parties and are located down peaceful side streets.

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5. Southern Higashiyama

Many of Kyoto's most well-known and visited tourist spots are located in the southern Higashiyama area. It’s one of the best areas to stay in Kyoto. If you want to experience Kyoto to the fullest, you have to go to this neighborhood. Historically, Kyoto has been recognized for its old cultural influences. A weekend in Kyoto, however, offers many more trendy pleasures, including groovy coffee shops, shopping districts, vintage shops, breweries, Japanese gardens, and other incredible hidden gems.

Famous landmarks include Arashiyama Park, Minamiza Kabuki Theatre, the Okochi Sanso Garden, and Tenryuji Temple. If you choose to stay here, you'll be close to many lovely places, and you can still stroll to Downtown Kyoto if you want to go out to dinner or see the shops or nightlife. In addition to being one of Kyoto's hippest neighborhoods, Southern Higashiyama is the greatest area for first-time tourists.

6. Kyoto Station

One of Japan's biggest train stations, Kyoto Station, is also among the most modern in the nation. It's one of the best areas to stay in Kyoto. Kyoto Railway Station, a city known for its well-preserved old buildings, temples, and shrines, showcases modern Japanese architecture. 

The rooftop terrace on the fifteenth floor is superb, and there are hundreds of stores and eateries to explore in addition to the amazing architecture. From here, we get a great perspective of Kyoto. Famous landmarks include Shoseien Garden, Kyoto Tower Observation Deck, To-ji Temple, Nishi Hongan-ji Temple, and the Kyoto Railway Museum. The best reason to stay here is the easy transit. Kyoto Station is Kyoto's main transportation center, and staying here provides convenient access to the rest of the city.

It is also convenient to visit nearby towns and sites such as Nara, Osaka, Himeji Castle, and the magnificent Fushimi Inari shrine. To navigate Kyoto, take the Subway or the bus stop in front of the station. The station has numerous eateries, shopping complexes, and even a movie theater. The neighborhood surrounding the station is densely packed with small stores and cafés. Unlike many European railway stations, this is a safe place to stay.

7. Arashiyama

Arashiyama, which lies at the base of Kyoto's western mountain range, is frequently ranked as the city's second-best sightseeing destination after Higashiyama. It’s one of the best areas to stay in Kyoto. Arashiyama is a beautiful place with green hills punctuated by the magnificent Hozu-gawa River, bamboo woods, and spectacular mountains in the distance. The main draws in the Arashiyama area are the Tenryu-ji Temple, Katsura River, Hozugawa River, Monkey Park, and the Bamboo Forest. Staying in the Arashiyama and Kansai region puts you in proximity to truly breathtaking nature.

As long as you avoid the tourist main streets during the day, which sometimes feel like a theme park, it's a peaceful rural place to explore by bicycle. Even though it is not the most popular region to stay in, some excellent Ryokans and motels exist. The Arashiyama location is relatively far from Kyoto's downtown (around a 30-minute drive). Tourists congest the main street, the bamboo grove, and the Togetsu-kyo Bridge from dawn till dusk. Staying in this region would probably not save you much money compared to a cheap place near the city center. However, if you can locate a bargain, Arashiyama isn't awful. Just be prepared to allow more time to drive between the city center and your accommodations.

8. Southeast Kyoto

There are also several places to stay in the Fushimi neighborhood in southeast Kyoto. It's one of the best areas to stay in Kyoto. Kyoto's main tourist attractions are conveniently located just to the north. Nearby attractions include Fushimi-Inari and Tofuku-ji. Access to more central regions of the city ( Pontocho Alley or Nishiki Market) will be more difficult because there is no direct metro route. You'll be close to the JR Nara line, which provides quick access to Uji and Nara, both popular day trip destinations. You can also travel to Osaka using the JR Keihan line.

9. Ponto-Chō

Between the main downtown shopping avenues of Shijō-dōri and Sanjō-dōri, Ponto-chō is a bustling yokochō (alleyway) that runs along the banks of the Kamo River. Experience Kyoto's rich cultural heritage by staying at the Ponto-cho geisha district, known for its traditional Japanese architecture and geisha performances. After dusk, Ponto-chō comes alive with the loud talk of imbibers in its numerous dining and drinking places and the glow of paper lanterns. Although the performers are now mostly confined to Gion on the other side of the river, Ponto-chō was originally one of Kyoto's geiko centers, and the idea of late-night entertainment is still very much there.

There's the historic Hello Dolly for live jazz and vintage cocktails on weekends. There's a great assortment of Japanese and foreign whiskeys at the silky Jazz in Rokudenashi (which means “without ice”). The design at Bar Alchemist is equally stylish, focusing on contemporary cocktail mixology and frequently English-speaking bartenders. Staying near Ponto-chō is convenient as it allows you to go directly to bed from one of its late-night spots. You'll also be within walking distance from Gion and some of Higashiyama's must-see attractions. Cross Hotel Kyoto is a decent midrange hotel that is a few minutes walk from the alleyway and has Japanese and Western-style rooms.

10. Shimogyo-ku

Shimogyo-ku is our choice for the finest family-friendly destination in Kyoto, even though it has many family-friendly areas. It’s one of the best areas to stay in Kyoto. This is due to the abundance of nearby food and shopping options and the area's close access to the train station. Families arriving by train will not have to shuffle the kids around to find accommodations, and transportation is conveniently available to navigate Kyoto's attractions. The different eateries around ensure that everyone is satisfied at mealtimes!

11. Kyoto Imperial Palace Area

Kyoto Imperial Palace and Nijo Castle are located just north of the city's central shopping and dining district. This area is a combination of both ancient and modern, with a more residential feel. Nonetheless, there are several restaurants, stores, cafés, and hotels. While this is not one of the most popular neighborhoods in Kyoto, you can find some fantastic hotels close to a train stop. You'll also be surprised by how short it is to walk from here to Kyoto's downtown center.

The neighborhood is full of quaint cafés and restaurants, so residents have little trouble choosing somewhere to eat. A popular breakfast destination in this region is the incredibly welcoming café School Bus Coffee Bakers, a local favorite. They have delicious pastries! Although this area has several well-known attractions, like the Golden Pavilion, Kyoto Imperial Palace, and Nijo-ji Castle, you will still need public transit to see some of Kyoto's most famous sites, such as the Higashiyama neighborhood with its renowned temples and shrines.

12. Nishijin

Nishijin is where Kyoto's rich cultural heritage comes to life, providing a look into the city's illustrious history. It’s one of the best areas to stay in Kyoto. This neighborhood has a rich history stemming from the Nishijin textile industry, which has been known for producing fine silk fabrics for a long time. A great way to learn about this technique is at the Nishijin Textile Center, which features traditional kimono displays and weaving demonstrations.

The renowned monthly Tenjin flea market is held at the nearby Kitano Tenmangu Shrine, which has ancient Shinto architecture and is devoted to the deity of learning. Art lovers should visit the Hokuryu Gallery, where modern Japanese art is exquisitely displayed in a traditional setting. You can also see the rock garden and attend a workshop at one of the numerous tiny ateliers dotted around Nishijin for a more practical experience.

Conclusion 

Kyoto is a city that changes with each neighborhood you explore. The area you choose to stay in can bring you closer to quiet temples, lively markets, or peaceful walks along the river. There's no single best spot, only the one that matches the experience you hope to have. Take your time, explore your options, and let your stay become part of what makes your visit to Kyoto feel unforgettable.

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Badmus Zainab
Badmus Zainab
I'm Zainab Badmus, the SEO Content writer who sprinkles magic on the web. With a B.Tech in Science Laboratory Technology at LAUTECH, my versatility knows no bounds. Beyond my scientific pursuits, I'm an unapologetic hopeless romantic who finds joy in the company of cats and the magic of movies. Life's a captivating blend of science and whimsy in my world!

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