Affordable housing - young people and first-time buyers
Reykjavík City launched a project with an idea search in 2018 to provide affordable housing for young people and first-time buyers. Already, 110 of the over 700 apartments planned have been delivered, and The Village EcoCompany is completing its project in Gufunes.
The apartments will not appreciate faster than the index
The Affordable Housing Project for Young Adults and First-Time Buyers has been part of the Reykjavík Housing Plan since June 2017. Nine partners, selected through an open competition process, participate and develop affordable housing.
The city's emphasis on affordable housing aligns well with the conditions for equity loans that took effect in fall 2020.
The City guarantees the buyers’ advantage
Reykjavík City ties land allocation to certain conditions to ensure the benefits of land allocation reach buyers, youth, and first-time purchasers. According to conditions imposed in the registration of title-deeds, the price of the units may not appreciate faster than the index.
Overview of Projects and Lots
The Village EcoCompany in Gufunes
The Village EcoCompany has sold all 137 apartments it built in Gufunes at Jöfursbás 11. More about the company's development on The Village's website.
Hverfið Gufunes in Gufunes
The company “Hverfið Gufunes” is now building the first 14 out of 65 apartments at Jöfursbás 9, and the project is expected to be completed in 2024. Teiknistofa arkitekta designed the buildings to be three stories and an attic, constructed from Norwegian timber units.
Vaxtarhús Affordable Housing at the Seamen's College Site
The company Vaxtarhús Affordable Housing will build 60 apartments at the site on Háteigsvegur 35. The land-use plan is approved, and the site is ready for construction. The architect is Rafael Pinho.
Urðarsel í Úlfarsárdalur
At Leirtjörn, Urðarsel, Alverk, Arkþing Nordic and Efla built a 52-apartment multi-family residence in three cores with a parking garage. The apartments were handed over to buyers in fall 2024. Read news about the apartment handover.
HOOS in Skerjafjörður
Apartments are being developed in the northeast corner of Nýi Skerjafjörður under the Hoos brand, which was allocated a plot in spring 2022. The land-use plan is approved, but the plot still needs to be prepared for construction.
Investis in Kjalarnes
The company Investis ehf. intends to build modular housing, on one to two floors, on a lot of land in Grundarhverfi in Kjalarnes. The design of the houses is ongoing. The housing is expected to be in the form of townhouses, five apartments in a strip or 8 to 12 apartments on two floors.
Variat on Vedurstofuhaed
The Variat Group, which includes the companies Habilus and Teiknistofa arkitekta, is working on the land use plan for a lot by the Meteorological Office. Planning work will begin shortly.
Bryggjuhverfi III
Sedrus and Modulus plan development on sites G and D in Bryggjuhverfi III. The sites are being made ready for construction, which is anticipated to happen in the 4th quarter of 2022 or the 1st quarter of 2023.
History of the Campaign
The Reykjavík Housing Plan—approved by City Council in June 2017—first identified proposals for cheaper apartments, young adults and first-time buyers.
A task force was formed according to official instructions from the Mayor in order to work on the proposals. In 2017, the task force called for ideas for solutions for affordable housing.
In April 2018, the City Council agreed to provide lots for the project. After that, a campaign was launched with the aim of building more than 500 units.
A total of 68 proposals were received and presented in March 2019. Next, partners were called for and a total of 16 groups applied. The groups presented their ideas in the fall of 2018, and, after an assessment, City Council agreed in early November 2018 to enter into agreements with the nine groups that scored the highest. One of the groups quit the process but the other eight work tirelessly on their projects.