Green housing of the future

Description of the action and objectives

Green Deal action

The project involves collaboration across five lots to support the development of more sustainable structures that reduce negative impacts on climate and the environment. The project is part of Reykjavík's Green Plan and takes into account the Municipal Plan and Climate Policy, which comprehensively look at economic, social, and environmental sustainability. The plots in question: Arnarbakki 6, Völvufell 13-23, Völvufell 43, Frakkastígur 1, and Veðurstofureitur.

 

Implementation period

Planned completion in the second half of 2026

Status: In progress

Status report on July 1, 2025

Frakkastígur 1 is under construction and the building has begun to take shape. The building will have a 55.7% lower carbon footprint than reference buildings, with many materials sourced from recycled resources.

The land-use plan for Veðurstofureitur was advertised in section B. A competition is underway for a multi-use building at Veðurstofuhæð, a fundamental component of the current land-use plan.

Regarding the lot terms for Arnarbakki 10, discussions are ongoing with Veðurhæð ehf. Talks about the lot at Völvufell changed following planning modifications. Vistbyggð ehf. was invited to discussions about Völvufell 1-15 instead of the original location. The company has since stated its position and has no interest in receiving the lot allocation. The lot team will prepare allocation terms for the lot.

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
On June 27, the City Executive Council approved advertising the Department of Environment & Planning's proposal for a new land-use plan for the Meteorological Office area. The land-use plan has been developed in close communication with developers who have lot reservation agreements. The plan includes more than 200 residential units at Veðurstofuhæð designed for a diverse population, creating a comprehensive new residential neighborhood in a central area in accordance with the current municipal plan, along with services that emphasize a strong sustainability focus.
 
Construction is underway at Frakkastígur 1 with significant development in progress, aiming to reuse building materials wherever possible to minimize emissions. The status of lots in Breiðholt remains unchanged, but planning and contract work is in its final stages, with lot allocations expected in the coming months.
  January 2024 Preparatory work has begun at Veðurstofuhæð. A lot lease agreement was granted to Grænt húsnæði ehf. for the area. Discussions on a detailed land-use plan have started with all developers holding lease agreements. Construction has begun at Frakkastígur 1. Negotiations ended with the top contender in the competition for Arnarbakki, as they were not ready for lot assignment. The second contender has been invited for negotiations, and these discussions are ongoing. Lot assignments in Völvufell are delayed due to planning work.
  July 2023 In late winter 2022, designers involved in the Green Housing of the Future competition were asked to submit ideas for a land-use plan for Veðurstofuhæð. At the end of June 2023, Lendager Group was chosen to oversee the planning work. During summer and fall 2023, the project was presented to stakeholders such as FSRE, the Icelandic Meteorological Office, Veitur Utilities, and lot leaseholders. Next steps include detailed land-use planning in collaboration with stakeholders. Agreements are signed at Frakkastígur, and construction preparations by the developer Iða are underway. Negotiations are ongoing for Arnarbakki and Völvufell.
  January 2023 A contract was signed with Iða regarding building lot allocation at Frakkastígur 1. Iða plans to design and construct a multi-family home at Frakkastígur 1, utilizing circular economy methodologies. The house, known as Græni Klettur in reference to Hvítserkur in Vatnsnes, will contribute at least 50% less emissions than a reference building. Part of this plan involves rethinking building materials and not just throwing away valuable resources but rather re-inventing and creating anew. Building plot allocations for the remaining four plots are still pending, with the intention of inviting the most qualified teams to negotiations for contracts.
  July 2022 The city requested proposals for green housing development on five lots in Reykjavík. Winning teams were found separately by the competition committee for each plot. The Legal Team is working on drafting demands and is about to invite teams for contract negotiations.

Related actions

The table below contains actions; more information can be accessed by clicking the "action title" in the table.
Action name Status Completion Updated Departments
Housing plan In progress 2025 July 2025 Office of the Mayor & Chief Executive Officer
Department of Environment & Planning
Green housing of the future In progress 2026 July 2025 Office of the Mayor & Chief Executive Officer
Ártúnshöfði In progress 2025 July 2025 Department of Environment & Planning
Skerjafjörður In progress 2025 July 2025 Department of Environment & Planning
Kjalarnes In progress 2024 July 2025 Department of Environment & Planning
Keldur In progress 2025 July 2025 Department of Environment & Planning
Better Transport
Idea search for planning of the Borgarspítali site (City Hospital), Sóleyjarrimi and Safamýri In progress 2025 July 2025 Department of Environment & Planning
Affordable housing for young people and first-time buyers In progress 2025 July 2025 Office of the Mayor & Chief Executive Officer
Department of Environment & Planning
Reinventing Cities In progress 2026 July 2025 Office of the Mayor & Chief Executive Officer
Department of Environment & Planning
Quality of life communities In progress 2025 July 2025 Office of the Mayor & Chief Executive Officer
Department of Environment & Planning
Housing for disabled individuals Completed 2022 January 2023 Department of Welfare
Office of the Mayor & Chief Executive Officer
Department of Environment & Planning
New map view of housing construction Completed 2022 January 2023 Office of the Mayor & Chief Executive Officer