Residential development by planning category

Below is an overview of the main construction areas slated for development in the coming years. The development was also detailed in a publication about housing development in Reykjavík in October 2020.

Reykjavík City's Housing Plan (October) divides upcoming development into four categories:

1. Construction areas in progress – 3,034 residential units
2. Approved land-use plans – 4,898 residential units
3. Areas in the planning process – 9,442 residential units
4. Development areas under review/preparation – 6,815 homes

Total: 24,189 residential units.

Strong momentum in city housing development

Since the Housing Plan was first presented in spring 2017, there has been significant progress in housing development throughout the city.

(Graph on housing development in Reykjavík to be inserted)

As of fall 2020, 3,034 homes are under construction, a decrease of over 1,000 from the previous year. This reduction is largely due to more than 1,200 homes being completed and removed from the Housing Plan between 2019 and 2020.

The number of homes in approved land-use plans has increased by about 250 since fall 2019, now totaling 4,898. Homes in areas undergoing the planning process have increased by over 800, now reaching 9,442.

A significant increase has occurred in homes in development areas, rising from 4,160 in fall 2019 to 6,815 in fall 2020, an increase of nearly 2,700.

Accounting for homes removed from the Housing Plan, nearly 4,000 new homes have been added year-over-year. Future areas are projected to accommodate an additional 13,000 homes beyond those already included in the Housing Plan. The total number of homes within the Housing Plan and future areas therefore reaches about 37,000, representing approximately 67% of the city's current housing stock.

Denser development and stronger neighborhoods – construction shifting eastward

Reykjavík's Housing Plan involves densification of the city's neighborhoods, promoting increased sustainability throughout the city and its districts. While recent years have seen significant construction in the western part of the city, development is now shifting eastward.

(Graph showing number of homes by city district not included)

Ártúnshöfði is the largest area in the Housing Plan, with nearly 6,000 homes planned. This area will see the rise of Reykjavík's first comprehensive green urban neighborhood, constructed in accordance with international sustainability standards.

Following this are Laugardalur and adjacent areas with just under 4,100 homes, Háaleiti-Bústaðir with over 2,700 homes, and Vatnsmýri with more than 2,300 homes.

Housing associations account for nearly a third of new homes

Reykjavík City aims for about 25% of new homes to be managed by non-profit housing associations. In total, the number of units owned by residential housing companies under the Housing Plan is closer to 7,000, or 29% of all units. Currently, housing associations are constructing 1,227 homes in Reykjavík, representing 40% of all homes under construction.

Reykjavík City's allocation plan provides detailed information on building lot allocations and the distribution of homes among housing associations, affordable rental housing, and the Affordable Housing project.

Completed construction areas 2017-2020

Since the initial publication of Reykjavík City's Housing Plan in 2017, development areas with nearly 2,300 homes have been completed and removed from the plan. Of these, 1,250 are affordable rental housing units and 1,048 are housing association homes. An overview of completed construction areas is provided here.