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 2030

Status: In progress

Status report on January 1, 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.

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).
Timing Progress description
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: