Discover what’s new before everyone else:

Get our free on-the-go Nordic hotspot map!

The Nordic Nomad

Reykjavík, Iceland

Where to stay in Reykjavík: the neighbourhoods you’ll love

The Nordics • Stay • Where to stay in Reykjavík: the neighbourhoods you’ll love

Best areas to stay in Reykjavík (and how to choose the right one)

Choosing where to stay in Reykjavík means choosing which rhythm you want to wake up to. Some streets crackle with music and midnight light. Others carry the scent of steam and seaweed, drifting past houses the colour of old postcards. The city is small, but it shifts – block to block, moment to moment – and where you base yourself changes everything: what you hear, what you eat, how long you stay out, how early you come home. We’ve walked these streets in storm winds and stillness, when the sky never sets and when the snow hushes everything. Here are the parts of Reykjavík we return to – and why they still feel new.

An overview to the best neighbourhoods to stay in Reykjavík

Reykjavík is small, but it shifts fast – from steam rising off sea baths to music spilling out of basement bars. The city doesn’t divide neatly. It flickers between residential quiet, creative pockets and wild bursts of nightlife, often just streets apart. Where you stay changes how the city speaks to you – whether it’s through design shops and street art or geothermal pools and seagulls.

For central energy and walkable days

Miðborg and 101 Reykjavík are the beating heart – cafés, culture, late-night noise and everything in between. Perfect for first-timers or anyone who wants Reykjavík on their doorstep.

For space, calm and local rhythm

Hlíðar and Vesturbær slow things down. Still central, but softer. Think morning swims, university cafés and families walking home with fresh cinnamon buns.

For parks, pools and longer stays

Laugardalur stretches east, offering green space, family attractions and Reykjavík’s biggest public pool. Less charm, more comfort.

For creativity, contrast and new ideas

Grandi and Breiðholt show Reykjavík evolving – docklands turned design hubs, suburbs turned art labs. A bit raw, a bit real and very much in motion.

Miðborg

Reykjavík’s core Miðborg (also known as 101) is compact but constantly in motion. From Hallgrímskirkja to Harpa concert hall, it’s all here – record shops, cocktail bars, bookstores that double as cafés. Streets like Laugavegur and Skólavörðustígur form the city’s backbone, lined with Icelandic design, knitwear and coffee that’s better than it needs to be. You can walk everywhere, which means tourists do too. It’s lively, scenic, sometimes loud and often windy. But if you want to feel Reykjavík beating just outside your hotel window – sometimes at 3 am – Miðborg delivers. Stay here if you like buzz, culture and being in the middle of everything.

Read the article on our pick of the best Miðborg hotels.

Miðborg pros and cons

Pros	Cons
Central for museums & landmarks	Often crowded with tourists
Easy access to shops & cafés	Nighttime noise can be loud
Vibrant nightlife & bars	Accommodation tends to be pricey
Compact & walkable layout	Limited green or quiet spaces
Cultural hub with Harpa & galleries	Feels busy even late at night

Hlíðar

Step one street out of downtown and the city softens. Hlíðar is the quiet behind the noise – still central, but not trying to entertain you. It’s where students live, kids bike past apartment blocks and the museums lean more local than Instagrammed. The Reykjavík Art Museum’s Kjarvalsstaðir branch anchors the cultural mood and green spaces like Klambratún Park offer quiet pockets for reading, running or nothing at all. Hotels and guesthouses here are often better value, with quick bus access and easy walks back into town. Stay in Hlíðar if you want a bit more space, a bit less noise and a Reykjavík that exhales between scenes.

Hlíðar pros and cons

Pros	Cons
Residential calm close to centre	Quieter nightlife offering
Access to Kjarvalsstaðir & parks	More residential feel than charming
Better-value guesthouses available	Fewer cafés and indie boutiques
Family-friendly streets and pools	Not ideal for late-night strolls
Good bus links into central area	A little out of hectic downtown zone

Photography courtesy of Perlan

Vesturbær

Vesturbær feels like Reykjavík after hours. Not in the nightlife sense – in the “locals walking their dog by the sea at 9 pm” sense. It stretches west from the harbour, past embassies and old villas, until the city starts to feel more like a town. The university’s here, along with one of Iceland’s best public pools – Vesturbæjarlaug – where hot water and local gossip mix freely. There are bakeries, bookshops and seafront paths, but not much in the way of spectacle. And that’s the point. Stay in Vesturbær if you want quiet mornings, evening swims and a softer, slower rhythm – all within walking distance of the centre.

Vesturbær pros and cons

Pros	Cons
Harbourside, scenic and quiet	Fewer nightlife & bars
Close to embassies & marina	Accommodation can be expensive
Excellent public pool nearby	Less variety in dining after dark
Local bakeries & calm cafés	Sometimes described as “too quiet”
Short walk to centre through town	Can feel residential rather than vibrant

Photography courtesy of Reykjavík University

Laugardalur

Laugardalur is where Reykjavík gives you room to move. Centred around the city’s largest park, it’s home to the national football stadium, the botanical gardens, the family zoo and the open-air Laugardalslaug swimming pool – the biggest in town. Hotels here tend to be modern and functional, popular with groups and travellers looking for amenities over ambience. It’s a little too far to walk to central Reykjavík comfortably in winter winds, but buses are frequent and bike paths are smooth. Stay in Laugardalur if you want space, green zones and easy access to Reykjavík’s public pools and kid-friendly attractions – or just a break from cobbled charm.

Laugardalur pros and cons

Pros	Cons
Park, pool, zoo & botanical garden	Too distant to walk in winter
Family attractions & sports venues	Fewer restaurants & bars nearby
Spacious, green and less busy	Lacks downtown charm or buzz
Good modern hotels & amenities	Area feels more functional than scenic
Well connected by bus & bike paths	Quiet after early evening hours

Photography courtesy of Reykjavík Art Museum Ásmundarsafn

Grandi

Grandi’s story is Reykjavík’s story. From fish to fashion, from docks to design. What used to be a working harbour now hosts art spaces, sea-to-table restaurants and galleries housed in old shipyards. The vibe is industrial-but-polished, with museums like Whales of Iceland and the Reykjavík Maritime Museum adding depth. It’s still a little raw around the edges – which is part of its charm – but you’re only a short walk from the centre. Hotels tend to be boutique or reimagined, with big windows, concrete walls and harbour views. Stay in Grandi if you like cities that remember where they came from, even as they rebuild.

Grandi pros and cons

Pros	Cons
Maritime-industrial character	Still industrial in parts
Home to food halls & seafood spots	Construction noise sometimes reported
Close to Whales & Maritime museums	Limited hotel choices
Boutique hotels with harbour views	A bit pricey given location
Walkable to city core	Night-time crowd thins early

Photography courtesy of Grandi Mathöll

Breiðholt

Breiðholt doesn’t show up in tourist brochures – and that’s precisely why it’s interesting. A post-war suburb with low-rise blocks, immigrant-run groceries and Iceland’s most talked-about experimental art scene, it’s slowly earning attention beyond the city centre. This is Reykjavík’s most diverse district, home to families, artists and initiatives that use culture as community glue. You won’t find boutiques or luxury stays – but you’ll find something real. Public transport runs regularly and walking trails skirt the lakes just beyond the housing estates. Stay in Breiðholt if you’re curious, open-minded and looking to see where the edges of Reykjavík start to shift and shimmer.

Breiðholt pros and cons

Pros	Cons
Genuine local character & diversity	Not much for visitors to see
Artist-run cafés and galleries	Few hotels or guesthouses available
Affordable compared to city centre	Limited options for dining out
Regular bus links to downtown area	Area feels distinctly suburban
Edges onto lakes & walking paths	Less polished and still developing