The City Executive Council today approved an agreement with Reitir Real Estate, representing Reitir – Development and Reitir Commercial Real Estate, for the first phase of development in the Kringlan area. Félagsbústaðir Social Housing will have an option to purchase some of the residential units. Reitir commits to working with others on a plan for preschool services in the area, and the lot owners along with the city will contribute funds for public art there.
Idea competition
An idea competition for planning the Kringlan area north of Listabraut was held in 2017 to generate ideas for a new, dense urban environment where diversity could flourish. The proposal from Kanon Architects won first prize, and the framework plan was approved in June 2018. The framework plan calls for development in seven separate phases, and this agreement is part of the first development phase.
Overview showing the planned layout for the area. (Henning Larsen and THG Architects).
New land-use plan in development
According to the lot owners' concept, approximately 418 residential units plus commercial space will be built on the lots. This involves more than 56,000 square meters of residential space and over 11,000 square meters of commercial space. Reitir is expected to pay more than one billion króna for the development rights. Additionally, Reitir will pay road construction fees and other legally required fees related to the development.
A new land-use plan for the lots is in development, and factors such as lot locations, use, and building density may change during the approval process. Construction on each lot must be completed within 36 months of the issuance of a building permit.
Access to the neighborhood from Kringlumýrarbraut. (Henning Larsen and THG Architects).
Public art, preschools, Félagsbústaðir Social Housing and public spaces
The planned development falls under Reykjavík City's approved Housing Plan and the City's general objectives for new development areas. In accordance with this, the lot owners commit to dedicating specific funds for public art in public spaces in the area—11.5 million króna—with Reykjavík City contributing the same amount.
Based on these objectives, approximately 20% of units will be rental housing, including student housing, housing for older adults and/or dwellings in building cooperatives. Félagsbústaðir Social Housing has an option to purchase up to 5% of the units to be built, and if they exercise this option, those units count as part of the 20%. The lot owners commit to collaborating with other lot owners on the site to ensure preschool services are available in the area.
Plans include public spaces and a pedestrian and bicycle bridge over Kringlugata to connect Reitir's land with neighboring areas.
Building a city for people
The mayor will hold an open informational meeting about housing issues tomorrow, Friday, March 28, 2025, at Reykjavík City Hall, and the meeting will be streamed online. The Kringlan area will be among the topics discussed.
Mayor's informational meeting about housing issues.
Letter from the Office of the Mayor and Chief Executive Officer.
Computer rendering of a courtyard in the Kringlan area. (Henning Larsen and THG Architects.)