Updated agreement on nursing home construction at Mosavegur in Reykjavík

The signed contract reflects a revised division of responsibilities for nursing home development that became law last year. Under that legislation, full financial responsibility for these projects shifted to the national government.

The new facility is planned for Mosavegur 23 in Reykjavík's Grafarvogur neighborhood, on land provided by the City. A private contractor will build the home through a competitive bidding process and operate it under a long-term lease with the national government.

"The Mosavegur nursing home has been in the planning stages for years without ever breaking ground. This agreement, built on a historic settlement between the national government and local municipalities, gets the project moving again. I look forward to seeing a first-rate nursing home rise at Mosavegur in Reykjavík. Nursing home development is advancing rapidly, and the government has truly prioritized the needs of older adults," said Inga Sæland, who oversees the initiatives.

Mayor Heiða Björg Hilmisdóttir echoed that sentiment. "It is tremendously good news to reach an agreement with the government on an issue that matters so deeply to our residents. I know the new nursing home at Mosavegur will make a real difference in the lives of people across Reykjavík. We are not simply ensuring a building goes up — we are securing care, safety, community, and a better quality of life.