City center

Description of the action and objectives

Green Deal action

In the coming years, the city center area will continue to develop with accompanying effects on its environment and daily life. Among the largest projects of the coming years will be the development of Laugavegur into a pedestrian street all year round, an increase in pedestrian streets in Kvosin, the construction of a new city square at Hlemmur and the CityLine will pass through Hverfisgata and Lækjargata. Also, a collaborative group is working to increase the oversights of city center issues, support targeted information dissemination on them, and enhance collaboration and consultation between stakeholders and city departments

 

Implementation period

Planned completion in the second half of 2025

Status: In progress

Status report on July 1, 2025

The development of the Laugavegur pedestrian street and its surrounding area is progressing well. Construction to convert Vatnsstígur into a pedestrian street is underway and expected to finish this year. The design for the pedestrian street adjustment at Vegamótastígur from Grettisgata is complete, but it is unclear whether construction can happen this year or will be postponed until 2026. Upgrades to the Skólavörðustígur pedestrian street section were completed in summer 2025. Preliminary design for pedestrian and residential streets in Kvosin is underway in partnership with Veitur Utilities.

Reykjavík's policy for the city center requires a complete overhaul. To inform this process, the City surveyed residents' attitudes toward the city center. Actual policy development has not yet begun.

The city center collaboration group is appointed through the end of 2025, and its mandate is due for renewal. Related working groups on topics like goods distribution and accessibility continue to meet, and officials have met with the board of the city center residents’ association.

The City reached a special agreement with the Downtown Reykjavík Marketing Association, and city center businesses have improved their coordination through the organization. A special campaign was launched to promote the Christmas City initiative, adding new equipment to improve the visitor experience and funding promotional advertising.

Hallgrímskirkja is a popular destination, and officials held consultations with tourism operators, residents, and other stakeholders to address the situation. Following a survey, officials decided to relocate tour bus stops. Discussions were also held concerning pick-up and drop-off points at Miðbakki, with participation from Associated Icelandic Ports, the Planning Department, and the Icelandic Tourism Board.

Efforts continued to find a long-term solution for the public market in the city center. Reykjavík City secured a renewed agreement with the state for Kolaportið and subsequently put its operations out for bid. Götubiti ehf. submitted the most competitive bid and has taken over Kolaportið operations.

Older status reports

Below you can find older status reports with information on the progress of the action since its inception (if you're using your phone, it's better to turn it sideways).
  Timeline Progress description
  July 2024

Reykjavík City has maintained strong collaboration with the Downtown Marketing Association, including holding consultation meetings between City representatives and association members. The Marketing Association has successfully recruited members, with 156 businesses now participating. Since its founding just over a year ago, the association has launched more than 100 campaigns generating over 5.5 million impressions. https://midborgin.is/

Reykjavík City has collected statistical data on services, retail, and business operations in the city center. A survey was conducted in April 2024. Key findings reveal that the number of retail and service locations in downtown Reykjavík has reached an all-time high of 718. Space utilization increased year-over-year, with a diverse array of retail and services now available. Additionally, the city center continues to expand. For more detailed statistics about the city center, visit: https://reykjavik.is/en/city-center-figures

A Ferris wheel was installed at Miðbakki in June 2024. This one-summer pilot project is being installed and operated by Taylors Tivoli Iceland ehf.

We have issued a call for new premises to house a public market in downtown Reykjavík.

  January 2024

A new marketing association for the city center is rapidly taking shape, with Reykjavík City having an observer on the board meetings. A city center issues collaboration group met twice.

The City Executive Council approved the allocation of funds to 20 projects from the City Center Fund for 2023. The proposal for allocation was presented to the city center consultation forum for official statement, and no comments were received.

There is great satisfaction with the renovated area from Hlemmur Food Hall to Snorrabraut, with construction completed in fall 2023. The area south and east of the food hall will now be renovated and connected to the renovated section of Laugavegur, picking up where it left off.

M/Studios prepared a detailed needs assessment draft for a new city center market square to be open to the public.
  July 2023 Implementation of pedestrian streets in Kvosin is underway, with preliminary designs for Kirkjustræti, Vallarstræti, and Tjarnargata completed. The Lækjartorg competition is finished, preliminary design for Lækjartorg is complete, and preliminary design for Austurstræti has begun. The new marketing association for the city center was established in March 2023 by local business operators. The association, named Miðborgin Reykjavík, aims to serve as a marketing association for city center stakeholders to create a positive experience and enhance business, trade, services, and employment in the area. The Research Center for Commerce and Services conducted an annual count for Reykjavík City concerning commerce and services in the city center. The report showed an increase in commercial and service spaces since the last count. Despite the increase in spaces, the number of vacant spaces in the city center decreased. The number of dining establishments increased by 15 since the last count, and bars and entertainment venues by five. Cultural and service spaces increased since the last count, with a significant rise in spaces offering tourist services, art galleries, and other service activities. New operations have emerged or relocated to 95 spaces in the city center over the year between counts.
  January 2023 Work was carried out on the ordinance of the new city center marketing association, as well as developing a cooperation agreement with Reykjavík City. Four meetings have been held on noise pollution in the city center, with the Public Health Authority and police taking stricter measures. The discussions have been informative and positive. In addition, a night bus was launched, a project that will be continued on behalf of Reykjavík City. Applications for the Miðborg Fund were advertised in November. More applied in 2022 than previous years, with a total of 43 applications received. Out of these, 23 projects were granted support totaling 21,450,000 kr. In the eastern wing of Hafnarhús, a creative arts space called Hafnar.haus opened. There, anyone interested in creative spaces can apply for facility access for a minor fee. With these efforts, support is being given for creative development, ensuring a convergence of arts, design, programming, and innovation.
  July 2022 Work is underway to establish a new city center marketing association as a venue for individuals and companies operating businesses in downtown Reykjavík with the goal of creating positive experiences and boosting business, trade, services, and jobs in the area. Lækjartorg is set for significant changes in the near future following the selection of a winning proposal in a design competition in March. The competition area spanned Lækjartorg, Lækjargata from Hverfisgata to Austurstræti, Austurstræti from Lækjargata to Ingólfstorg, and Bankastræti from Þingholtsstræti to Austurstræti. In May, a declaration of intent for the future housing of the Iceland Academy of the Arts (LHÍ) in Tollhúsið (the Customs House) by Tryggvagata was signed. Thus, Tollhúsið takes on a new role as a hub for creative industries in Iceland. There, for the first time since the school's foundation, all divisions will come together under one roof. A working group has been set up regarding the future housing of Kolaportið, which needs to move out of Tollhúsið with the arrival of LHÍ. The group's task is to conduct a needs assessment for facilities for a flea market, map out possibilities and optimal locations in the city center, including by conducting a market survey advertising for possible options.

 

Connection of action to Reykjavík City's policies: