.Are you considering a trip to Reykjavik, Iceland’s capital? Then you probably want to know the best areas to stay in Reykjavik. My top choices are Midborg, Vesturbaer, and Hlidar.
From active volcanoes to geysers and hot springs. From glaciers to lava fields to some of the world’s most stunning natural scenery, Iceland has it all.
Along with its breathtaking landscapes, Iceland has a rich history dating back to the Scandinavian Norsemen, and a 9th-century Viking village was once located on the site of modern Reykjavik.
It is an ancient country focusing on modern sustainability, renewable energy, and a high standard of living.
The world’s northernmost capital, Reykjavik is also Iceland’s largest city and just three miles from the airport. An attractive, compact metropolis, it is home to almost 60% of the country’s population and makes an excellent base from where to enjoy the many attractions in the city and beyond.
In this most walkable of cities, I have highlighted six of the best areas to stay in Reykjavik to enjoy the many attractions on offer both day and night.
Where to Stay in Reykjavik: Best Areas
1. Miðborg, where to stay in Reykjavik for first-time visitors
Located in central Reykjavik and considered the city centre, Midborg is one of the most popular districts for first-time and return visitors looking to stay in Reykjavik.
Did you know Iceland was the first European country to operate a parliament? Dating back to 930 AD, the area they used to meet is now classified as a UNESCO World Heritage site.
As the modern seat of the Icelandic administration, the city centre has many government buildings, including the parliament building, city hall, and the prime minister’s offices.
Big on democracy, in front of the City Hall you will find a sculpture by Magnus Tomasson entitled ‘In memory of the anonymous official.’
In Miðborg, you will also find the spectacular Hallgrimskirkja Cathedral, the Harpa Music and Conference Hall and the modern shopping complex on Laugavegur Street.
If you fancy a little souvenir or memento shopping during your stay in Reykjavik, look out for Skólavörðuholt Street, which branches off Laugavegur Street. You will find plenty of small shops, cafes, design studios, galleries and art shops here.
Those who fancy ‘taking the waters’ can visit the hot tubs and lagoon at the Nautholsvik Geothermal Beach.
The city centre is also a buzzing, vibrant, popular night-time area with visitors and residents. With plenty of cafes, bars and restaurants, you can party the evening away or just stroll the streets looking for the Northern Lights.
Accommodation for your stay in Reykjavik is broad in Midborg, ranging from Airbnb, B&Bs, guest houses and a full range of hotels from 2-star upwards.
BEST PLACES TO STAY IN MIDBORG
- ($$$) The Reykjavik EDITION
- ($$) Hotel Von
- ($) Baron’s Hostel
2. Vesturbær, coolest area to stay in Reykjavik
Vesturbær is a quiet, primarily residential, middle-class district popular with visitors who like to escape the city centre’s almost constant hustle and bustle. Especially at night.
Located west of the town centre, by the harbour, Vesturbær is just a pleasant 20-minute stroll along the waterfront from the city centre, making it an ideal place to stay in Reykjavik from where to explore other areas of this fascinating city.On its eastern border, you can find The National Museum of Iceland and the campus of the University of Iceland, while to the north is a popular Marine Museum.
The district is also a favourite among all age groups, especially the young and trendy due to its high volume of independent fashion outlets, hip cafes, an excellent range of local and international restaurants, and stylish bars offering international beers and craft ales.
While enjoying your pint of local beer, you may ponder why beer has only been available in Iceland for just over 30 years.
In 1915, a prohibition was put on the sale of beer, which remained in place until a nationwide referendum in 1989 voted to overturn the prohibition and allow the sale of beer.
Since then, on the 1st March every year, Icelanders celebrate ‘Beer Day’, when copious amounts of the brown nectar are consumed.
Other attractions of interest around the Vesturbær area include:
- The Living Art Museum:Art works by local and international artists.
- Ægisgarður: The home of Viking brewing.
- Whales of Iceland: An interactive exhibition using life size models.
- The Saga Museum: Dive into the history of Iceland.
- The Aurora Reykjavik Museum: All you need to know about the Northern Lights.
Vesturbær is a very popular base with visitors staying in Reykjavik. You’ll find the most places to stay near the center. There’s not a ton of options, but there’s a mix of fancy hotels, budget spots, and some apartments for rent.
BEST PLACES TO STAY IN VESTURBAER
- ($$$) Grandi by Center Hotels
- ($$) Reykjavik Marina – Berjaya Iceland Hotels
- ($) Refurinn Reykjavik Guesthouse
3. Hlídar, where to stay in Reykjavik on a budget
Located on the east side of downtown Reykjavik, Hlídar is a popular destination with visiting students and backpackers due to its many budget hotels and hostels.
For a small neighbourhood of just over three square miles in area, it also has some interesting attractions, including the Reykjavik Museum of Art, the Icelandic Phallological Museum (yes really), and Nauthólsvík, Iceland’s famous geothermal beach.
The pools, homes and businesses throughout Reykjavik are supplied with hot water by six geothermal tanks sitting below the Perlan (pearl) on Öskjuhlíð Hill, which can be seen from across the district.
Well worth a visit, Perlan also has the Northern Lights Planetarium, a high-tech nature exhibition, the puffin paradise at Látrabjarg Cliff, an indoor ice cave, and a slowly rotating restaurant, where you can enjoy a lunchtime snack or full meal.
Hlídar is also home to some of Reykjavik’s best schools and university campuses.
Settlers began to populate Hlídar in the late 19th century, but it wasn’t until the 1930s that the first permanent homes were constructed on the site. Today, it is an area of suburban homes, green spaces, educational facilities and small businesses.
This area has an excellent range of lodgings, from student/backpacker hostels to guest houses and all levels of hotel accommodation.
And for those who want to stay in Reykjavik on a budget, Hlídar is an excellent choice, being close enough to the city centre and far enough away to unwind and chill.
BEST PLACES TO STAY IN REYKJAVIK IN HLIDAR
- ($$$) Eyja Guldsmeden Hotel
- ($$) ODDSSON Downtown Hotel
- ($) Hotel Aska
4. Laugardalur (Hot Springs Valley), ideal para la familia, y actividades deportivas y de ocio
Sitting east of Reykjavik’s city centre, Laugardalur is not a commercial district but the place to head for all sports and leisure activities, including football pitches, running tracks and an indoor ice rink. It also has numerous other attractions for the whole family.
The valley has numerous biking and hiking trails where you can enjoy the flora and fauna at your own pace.
- You will also find Reykjavik’s premier sports stadium in Laugardalur Valley, where most large national and international football matches are played.
- Close by is the multi-purpose Laugardalur Arena, which hosts everything from indoor sports events, trade shows and exhibitions to classical, pop and rock concerts.
- The valley is also home to Reykjavik’s Zoological Park, which houses Icelandic horses, cattle and sheep, foxes, reindeer and seals, and a children’s play area. It is open all year round.
- For the gardeners, there is Laugardalur Botanical Gardens. It is full of hardy northern hemisphere plants and flowers and has a pretty café where you can rest awhile and enjoy your favourite beverage.
- As if that’s not enough, you can visit the Ásmundarsafn sculpture collection, including a sculpture garden. All are a part of Reykjavík Art Museum’s Icelandic collection.
- To top it all off, you will also find the capital’s largest thermal pool in Hot Springs Valley, which has water slides, steam baths, and thermal pools. It is open 12 months of the year.
Purchasing a Reykjavik City Card will give you unlimited access to this and all the other geothermal pools around the city, as well as free travel on the city’s public transport.
For the backpackers, there is a campsite and hostel in the valley. For those who prefer more substantial lodgings, you will find a selection of guest houses and hotel accommodations around the edges of the park.
BEST PLACES TO STAY IN LAUGARDALUR
- ($$$) Tower Suites Reykjavík
- ($$) Hótel Reykjavík Grand
- ($) Lækur Hostel
5. Háaleiti og Bústaðir, one of the nicest areas to live or stay in Reykjavik
As the population of Reykjavik began to increase in the 1950s, Háaleiti og Bústaðir was picked as the place to build what was to become an almost new town within the city.
New blocks of three and four-bed apartments were constructed, and all the necessary infrastructure for businesses, new schools, shopping malls, recreational and medical facilities, public transport, hotels, bars, restaurants, and cafes were also built.
Located on the city’s east side, the Háaleiti og Bústaðir district is considered one of the nicest areas to live or stay in Reykjavik.
For the shopaholics, in the 1980s, a new retail development was constructed in Háaleiti og Bústaðir on a scale never before seen in Reykjavik. More than three decades later, Kringlan Shopping Mall continues to draw residents and visitors through its doors from across the capital.
Apart from the 170+ shops, cafes, restaurants, and multiplex cinema, visitors can also enjoy Adventure Vikings, which offers outdoor activities such as hiking, caving, snorkelling, and surfing.
If that sounds too energetic, visit the Icelandic Folklore Museum and learn about the Icelandic elves and various supernatural beings.
Very popular with visitors returning to stay in Reykjavik, Háaleiti og Bústaðir has a good selection of accommodation at all levels, is also a main artery into the city centre, and is well served by public transport.
BEST PLACES TO STAY IN HAALEITI OG BUSTADIR
- ($$$) Hotel Lotus
- ($$) ODDSSON Midtown Hotel
- ($) B14 Hostel
6. Seltjarnarnes, a quiet, stunningly appealing area of natural beauty
Just a pleasant few minutes stroll to the west of downtown Reykjavik will get you to the attractive peninsula of Seltjarnarnes.
Although one of the oldest districts in Iceland, it took until 1974 for it to receive the status of ‘town’ in its own right.
The town and surrounding area is a quiet, stunningly appealing area of natural beauty. You can enjoy bracing walks on the numerous paths while the breeze from the North Atlantic blows away the cobwebs and fills the lungs with pure fresh air.
Much of the area is a protected nature reserve for the one-hundred-plus species of resident and migrating birds that take up residence on the cliffs and clifftops.
Seltjarnarnes is also a popular evening meeting point for visitors strolling the coastal paths in the summer for the impressive sunsets. During the winter months you can enjoy some of the best views of the aurora borealis.
The favourite time to see this stunning light show is between the months of September to March. However, even then, nothing is guaranteed.
Towards the top end of the peninsula, you will find the Grotta lighthouse, which is inside the bird sanctuary. The lighthouse sits on Grotta Island, although you can walk across to it during low tides.
The lighthouse was built originally in 1897 and completely refurbished in 1947.
This area of the nature reserve is off-limits during May and June, which is the main nesting time for many of the birds.
For those who enjoy a little more activity than just walking, you can play a round of golf on the nine-hole course. Or enjoy a dip in Seltjarnarnes geothermal seawater swimming pool.
The whole area is a photographer’s paradise, and walking along the coastal paths offers fantastic views across the city and some great captures of the seals often resting on the rocks below.
On a clear day, you can also see the Snæfellsjökull glacier.
Accommodation around the town area for your stay in Reykjavik is very limited and runs a couple of guest houses to a few appartments.
BEST PLACES TO STAY IN REYKJAVIK IN SELTJARNARNES
For those using hire cars, there is adequate parking around town, and public transport is good for getting to other areas of Reykjavik and beyond.
Finally, if you are fortunate enough to be considering a week’s stay in Reykjavik, I would seriously recommend booking a few guided tours to areas outside the city limits. Visit more hot pools, the geysers, volcanos and spectacular waterfalls, to get a real feel of local life in this enchantingly beautiful country.