New residential neighborhoods under development in Úlfarsárdalur
A project description outlining amendments to the municipal plan for the Hallar area and its vicinity is now public. This plan presents an opportunity to bolster growth in eastern Reykjavík and advance sustainable urban development across the entire capital area. This marks the first step in a public consultation process expected to conclude in the first half of 2026.
The potential development areas are well-positioned and represent some of the last centrally located sites within the capital's contiguous urban area.
Bolstering the existing community
Planning a new school district in the Hallar area will help enhance the Grafarholt-Úlfarsárdalur district as a cohesive community, building on significant prior investments in local cultural institutions and sports facilities. In addition, the project will expand local retail and other services. The new neighborhoods in and around Hallar are intended to support the area's existing infrastructure and community.
Furthermore, constructing new residential neighborhoods in Úlfarsárdalur is key to bolstering the housing market in Reykjavík and the capital area, helping to ensure a larger and more stable supply of homes as outlined in the Housing Plan 2025-2034.
Expanding public transit and upgrading key roadways
Robust public transportation is essential for building new, environmentally friendly, and cost-effective urban neighborhoods in the area. This infrastructure is also vital for any future growth in Úlfarsárdalur. Upgrading the main and connecting routes to the area, as outlined in the Reykjavík Municipal Plan 2040, is another necessary step to accommodate a significant increase in residential units—first in Hallar and later potentially in the inner valley.
Open for comments until Dec. 11
The public is encouraged to review the proposal; all related data is available on the Urban Planning Portal. Official statements and comments will be accepted until Dec. 11.