Housing initiative
The goal of residential development in the city's established neighborhoods is to work quickly and effectively to create detailed plans and allocate buildable residential lots to meet housing market needs. The development emphasizes respecting the character and conditions of each location.
Images for Grafarvogur
Images for Breiðholt
Background
The Mayor launched a task force on housing issues in early 2024. One focus is exploring development possibilities on small and medium-sized lots in suburbs. The review started with Grafarvogur, and similar development began in Breiðholt in 2025.
Reykjavík City has worked systematically in recent years to monitor development to meet housing market needs based on housing plans, Reykjavík Municipal Plan 2040 goals, and neighborhood planning for established areas.
Neighborhoods reviewed comprehensively
It's important to review each neighborhood as a whole. Grafarvogur will add nearly 350 residential units, with special focus on making sure all new construction fits well with the existing environment. Small apartment buildings, single-family houses and semi-detached houses will be added throughout the neighborhood, designed to match the character and conditions of each specific area.
A similar review is in progress for Breiðholt, building on proposals from the recently approved neighborhood plan. Areas with available school capacity are prioritized.
Better use of infrastructure
Development in established neighborhoods aims to strengthen communities and use existing infrastructure, such as roads, utilities, and commercial centers. This development supports preschools and primary schools with room for more students.
Affordable and diverse
The focus is on affordable, environmentally friendly development with diverse housing options. This meets the needs of different groups based on family structure and age. Where possible, lots will be set aside for smaller not-for-profit housing organizations. Lots will also be identified for smaller developers to create more sustainable neighborhood communities and better support the municipal plan's main goals for sustainable urban development.
Green areas
Development will support biodiversity and green areas, both within and outside construction zones. Emphasis is on eco-friendly design and construction methods to minimize carbon footprint, using blue-green stormwater solutions and diverse vegetation.
What happens next?
Grafarvogur
We are developing the Municipal Plan Amendment after receiving comments through the Urban Planning Portal on the working proposal for the Municipal Plan Amendment. We are also continuing to develop detailed planning proposals for the lots. We expect to submit the Municipal Plan Amendment in late summer or early fall.
Breiðholt
The lots at Krummahólar, Austurberg/Hraunberg and Suðurhólar that were approved by the Environment & Planning Council on June 25, 2025, will go through a formal 6-week public notification process. The proposals will be presented on the Urban Planning Portal where residents and stakeholders can comment on the proposals during the notification period. The proposal presentation is also advertised in the Official Gazette (Lögbirtingablað) and newspapers.
After the notification process ends, we will review the comments received, respond to them, and prepare a report on them and the City's position on each. This process is expected to take about 2-4 weeks after the notification period ends.
