The Takeaway. Osaka is big, so you'll save a lot of time and energy if you stay somewhere central and convenient. The best places to stay (in order of preference) are Kita, Minami, Honmachi (Central Osaka) and the Shin-Osaka Area. Other decent places to stay include the Tennoji Area and the Osaka Castle Area.

In general, there are no “ghetto” level bad neighbourhoods in Japan, but some locals avoid going to Shimanouchi and Nishinari (considered to be populated with many nightlife workers, prostitutes, dealers and yakuza). Good neighbourhoods are Suita (in the outskirts of Osaka), Kujo, Taisho, Horie and a few more.

For Budget Travelers Kyoto is more of a tourist hotspot than Osaka, which has a local big-city scene. Because of this, accommodations and restaurants tend to be more expensive and targeted toward international visitors. If you're on a budget, Osaka is the more affordable city to stay in.

Umeda is a more modern area and has better links to cities outside of Osaka, such as Kyoto, Kobe, Wakayama, and Kanazawa. Namba, on the other hand, is a long-established area in Osaka with more history, and it also has the advantage of colorful nightlife, and access to both traditional and modern entertainment.