Where to Stay in Reykjavík: A Neighbourhood Guide for First-Time Visitors

For most first-time visitors, the best place to stay in Reykjavík is 101, the postcode that covers the old city centre. Almost everything worth walking to is within twenty minutes: the harbour, Hallgrímskirkja, the pond, the best restaurants and bakeries, and at least one good swimming pool. Within 101, though, the neighbourhoods feel quite different, and which one suits you depends on how you like to travel.

Laugavegur and the main streets

Laugavegur is the city's main street, running east from the old centre, much of it now closed to cars. It is where the shops, cafés, bars and restaurants are, and where Reykjavík does its evening walking.

Stay here if you want to step out of the door into the city, if you are visiting for a short time, or if you are travelling without a car. The trade-off is life on the street. Weekend nights can be lively, particularly in summer. Apartments facing a courtyard or garden rather than the street are worth asking about if you sleep lightly.

Skólavörðustígur and Þingholt

Skólavörðustígur climbs from Laugavegur up to Hallgrímskirkja, lined with small galleries, design shops and studios. Behind it, Þingholt is a hillside of old timber and corrugated iron houses, quiet gardens and narrow streets.

This is the area for people who want the centre on their doorstep but a calmer place to come home to. It is also the most beautiful part of the city to walk through in the evening.

The Old West Town and Vesturbær

West of the centre, the Old West Town and the wider Vesturbær are residential, leafy by Reykjavík standards, and very local. Vesturbæjarlaug, the neighbourhood pool, is one of the best in the city. There are good bakeries and a few excellent small restaurants.

It suits longer stays and repeat visitors who want to feel less like tourists. The centre is a fifteen to twenty minute walk.

The Old Harbour and Grandi

The harbour has changed a great deal in recent years. Grandi, once all fish factories, now has restaurants, the Marshall House with its galleries, small shops and views across the bay to Esja. Along the western shore towards Seltjarnarnes the city opens up to the sea.

Stay here for space, views and sunsets. It is a little further from the shops of Laugavegur, but close to some of the city's best food and to the sea walk that runs along the shore.

Hverfisgata and the streets around it

Hverfisgata runs parallel to Laugavegur, one street closer to the sea. It is home to the National Theatre, Bíó Paradís, the arthouse cinema, and several good restaurants, and the side streets running down from it are quieter and more residential than the main street.

It is a good choice if you want to be central but slightly removed from the busiest part of Laugavegur, and especially if you have a car, since streets here are easier to reach.

Outside the centre

Areas like Laugardalur, Hlíðar or the neighbouring towns of Kópavogur and Hafnarfjörður are pleasant and often cheaper, but you will rely on buses, taxis or a car. For a first visit we generally suggest staying central. Reykjavík is small, and much of its pleasure comes from walking it.

Do you need a car?

Not in the city. Everything in 101 is walkable, the airport bus stops in the centre, and taxis are easy to find. If you plan day trips to the Golden Circle or the south coast, you can rent a car for those days only. If you are bringing a car for the whole stay, look for somewhere with parking, as central street parking is metered.

A few questions worth asking before you book

Does the apartment face the street or a courtyard? Is there a lift, or stairs? Is there parking, and if not, how far is the nearest garage? Can you store luggage if your flight is late? These are the things that make a stay easy or difficult, and a good host will answer them quickly.

MUSE has three houses in the centre: the Collector's House on Laugavegur, the City House on Vatnsstígur just off Hverfisgata, and the Horizon penthouse by the western shore. You can see them at themuse.is.