New business areas: Esjumelar, Álfsnes, Hólmsheiði
Description of the action and objectives
Green Deal action
A robust economy is a prerequisite for Reykjavík to grow and prosper. Reykjavík is home to the main business areas in the capital area and the country as a whole, whether in terms of high-tech and knowledge operations, universities, finance, trade and services, public administration, culture and the arts, tourism, transportation, or industry. The development of new premises is happening in Esjumelar, Álfsnes, and Hólmsheiði, among other places.
Implementation period
Planned completion in the second half of 2025
Status report on July 1, 2025
Esjumelar: Lots at Bronsslétta 1 and 5 and Norðurgrafarvegur 3 are for sale, offering substantial opportunities to expand the business district. Bronsslétta 3 has been sold, but there's been limited interest in other lots in the area.
Álfsnes: A consulting team from Nordic Office of Architecture and Efla is working on a development plan and framework plan. Businesses and institutions are showing interest in the area.
Hólmsheiði: A new land-use plan for phase 2 of the business district at Hólmsheiði received approval in July 2025. We're reviewing whether additional lots can be added in the future, but it's essential to thoroughly complete preparatory work and studies due to potential impacts on water systems. There's strong interest in lots throughout the area.
Older status reports
| Timeline | Progress description | |
| July 2024 |
Esjumelar: Lots at Bronsslétta 1 and 5 and Norðurgrafarvegur 3 have been advertised for sale. Bronsslétta 3 was sold. Álfsnes: A feasibility analysis and report was presented to the City Executive Council, which approved assigning a working group to develop a development plan and business plan. Hólmsheiði: The City Executive Council approved lot terms with APT Holding, Veritas and Parlogis. The next step is to complete lot terms with Safari and Ölgerðin. |
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| January 2024 |
Preparations for a project regarding the future vision for Esjumelar have begun. Plots at Bronsslétta 1, 3, 5, and Norðurgrafarvegur 3 were advertised for sale. Bids were not accepted as they were deemed too low. This was confirmed by the City Executive Council. A feasibility report on an eco-industrial park at Álfsnes was prepared. There was a discussion about land reservations at Hólmsheiði with interested parties. Additionally, active conversations with the Public Health Authority concerning water protection provisions in the area are ongoing. Reykjavík City's Department of Environment & Planning hired Vatnaskil to further investigate water protection and provisions. |
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| July 2023 |
Planning is underway at Hólmsheiði. Negotiations are in progress with companies that the City Executive Council approved for land reservations. Work is being done to expand the activity area at Esjumelar. Four plots were advertised for sale, but few bids were received. Preparations for cleaning the area are in progress, along with discussions with companies on maintaining Esjumelar to make the area more attractive to potential stakeholders. A consultancy team is working on a feasibility study for the eco-industrial park at Álfsnes. |
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| January 2023 | Coordinating plans for infrastructure development continues alongside the creation of an infrastructure strategy for the next 10 years. The business areas of Esjumelar, Hólmsheiði, and Álfsnes are frequently presented to interested parties looking to build up their businesses in Reykjavík. In Esjumelar, plots become ready for construction in accordance with market needs, and four plots will be construction-ready by the summer of 2023. At the end of the year, calls were made to companies interested in development on Hólmsheiði. | |
| July 2022 | Preparation and coordination are underway with Veitur for infrastructure development plans. The business areas have been introduced to companies interested in establishing their businesses in Reykjavík. Several associations have been promised land in Hólmsheiði, and the land use plan for the area is under development. At Esjumelar, plots are made construction-ready according to market needs. |
Connection of action to Reykjavík City's policies:
Reykjavík City departments:
Related actions
The table below contains actions related to this initiative, and you can access more information by clicking on the "action title" in the table (if you're using your phone, it's better to turn it sideways).
Action
| Action name | Status | Completion | Updated | Departments |
|---|---|---|---|---|
| Reykjavík Science City | In progress | 2025 | July 2025 | Office of the Mayor & Chief Executive Officer Department of Environment & Planning |
| Gufunes - Creative Village | In progress | 2025 | July 2025 | Office of the Mayor & Chief Executive Officer Department of Environment & Planning |
| City center | In progress | 2025 | July 2025 | Office of the Mayor & Chief Executive Officer Department of Environment & Planning |
| New business areas: Esjumelar, Álfsnes, Hólmsheiði | In progress | 2025 | July 2025 | Office of the Mayor & Chief Executive Officer Department of Environment & Planning |
Economic objectives
- 1. Responsible financial management | Green Deal The City's Financial Policy is based on sustainability, stability, predictability, and transparency.
- 2. Dense and mixed development | Green Deal Denser, mixed housing with neighborhood sustainability at its core.
- 3. New employment opportunities of the future | Green Deal Future job opportunities will be based on knowledge, innovation, and sustainability.
- 4. A favorable environment for business and innovation | Green Deal Good land use, diverse economy, and premises for all types of companies of all sizes.