When planning a trip to Reykjavik, one of the most important decisions to make is where to stay. The Icelandic capital offers a variety of accommodation options, each with its own unique charm and appeal. Whether you prefer to be in the heart of the city or seek a more peaceful retreat, there is a neighborhood in Reykjavik that will meet your needs.

Choosing the right location for your stay in Reykjavik involves considering several factors, such as proximity to major attractions, access to public transportation, and the overall ambiance of the area. The city offers a range of neighborhoods, each with its own distinct character and amenities. In this article, we will explore some of the best areas to stay in Reykjavik, providing you with a comprehensive guide to help you make an informed decision.

From the bustling streets of downtown Reykjavik to the tranquil surroundings of the Grotta area, each neighborhood offers a unique experience for visitors. So, whether you are a first-time traveler or a frequent visitor to Reykjavik, read on to discover the ideal place to stay during your visit to this vibrant and beautiful city.


Factors to Consider

When choosing where to stay in Reykjavik, there are several factors that you should consider to ensure a comfortable and enjoyable experience. Here are some key factors to keep in mind:

  1. Proximity to attractions: Consider the distance between your accommodation and the main attractions you plan to visit. Being close to popular landmarks and points of interest can save you time and make it easier to explore the city.
  2. Access to transportation: Check if there are convenient transportation options, such as bus stops or a nearby taxi stand, near your chosen neighborhood. This will enable you to easily navigate around the city and access other areas of interest.
  3. Amenities and services: Look for neighborhoods that provide the amenities and services you desire, such as restaurants, cafes, shops, and grocery stores. Having these facilities nearby can enhance your overall experience and make your stay more convenient.
  4. Safety and security: Research the safety reputation of different neighborhoods in Reykjavik. Choose an area that is known for its safety and low crime rates to ensure a worry-free stay.
  5. Atmosphere and ambiance: Consider the vibe and atmosphere of the neighborhood. Some areas may be lively and vibrant, while others offer a more tranquil and relaxed setting. Choose an ambiance that aligns with your preferences and travel style.

By taking these factors into consideration, you can narrow down your options and find the perfect neighborhood to stay in Reykjavik that suits your needs and interests. Now, let’s explore some of the top neighborhoods in Reykjavik to help you make an informed decision.


Downtown Reykjavik

Downtown Reykjavik is the beating heart of the city, offering a vibrant and lively atmosphere. This neighborhood is ideal for those who want to be at the center of it all, with easy access to shops, restaurants, bars, and cultural attractions. Strolling through the streets of downtown Reykjavik, you will be surrounded by colorful buildings, charming cafes, and a lively arts scene.

One of the main attractions in downtown Reykjavik is the iconic Hallgrimskirkja, a stunning church that dominates the city’s skyline. From the top of the church’s tower, you can enjoy panoramic views of Reykjavik. The neighborhood is also home to the famous Laugavegur street, known for its excellent shopping opportunities, trendy boutiques, and unique Icelandic design stores.

In addition to its lively atmosphere, downtown Reykjavik is well-connected by public transportation, making it easy to explore other parts of the city. The neighborhood is also home to several museums, including the National Museum of Iceland, where you can dive into the country’s fascinating history and culture.

When it comes to accommodation, downtown Reykjavik offers a range of options, from luxury hotels to budget-friendly guesthouses. Keep in mind that staying in this popular neighborhood can come with a higher price tag, but the convenience and energetic atmosphere make it worth it for many travelers.

If you enjoy being in the midst of a bustling city with a vibrant nightlife, downtown Reykjavik is the perfect neighborhood for you. Explore the streets, soak up the lively atmosphere, and indulge in the culinary delights of this cosmopolitan city.


Laugavegur Street

Laugavegur Street is the main shopping street in Reykjavik, located in the heart of the city. This bustling and vibrant area is a favorite among locals and tourists alike and offers a wide array of shops, boutiques, cafes, and restaurants.

When staying near Laugavegur Street, you’ll have easy access to some of the best shopping opportunities in Reykjavik. From high-end fashion brands to unique Icelandic design stores, you’ll find a variety of options to suit every taste. Explore the local boutiques and discover one-of-a-kind pieces to bring home as souvenirs or gifts.

Aside from its shopping scene, Laugavegur Street is also known for its lively nightlife. In the evenings, the street comes alive with bars, pubs, and live music venues. Whether you’re looking for a relaxing evening in a cozy pub or want to dance the night away, Laugavegur Street has something to offer for everyone.

While Laugavegur Street is vibrant and bustling, it is worth noting that some noise can be expected, especially during weekends and peak tourist seasons. If you’re a light sleeper or prefer a quieter setting, you may want to consider staying in a nearby neighborhood while still enjoying easy access to the attractions and amenities that Laugavegur Street offers.

In terms of accommodation, you’ll find a mix of hotels, guesthouses, and apartments in and around Laugavegur Street. From luxury accommodations to more budget-friendly options, there are plenty of choices available to suit different preferences and budgets.

Whether you’re a shopaholic, a foodie, or a nightlife enthusiast, staying near Laugavegur Street will ensure that you have a memorable and exciting experience in Reykjavik. Immerse yourself in the vibrant atmosphere, indulge in delicious meals, and bring home unique finds from the city’s most famous shopping street.


Old Harbor Area

The Old Harbor Area, also known as the Reykjavik Harbor or Grandi, is a charming and picturesque neighborhood located along the waterfront in Reykjavik. This former industrial area has undergone a transformation in recent years and is now a popular destination for both locals and tourists.

The Old Harbor Area is home to a variety of attractions and activities. Take a leisurely stroll along the harbor and admire the colorful fishing boats and stunning views of the ocean. You can also visit the Víkin Maritime Museum, which provides insight into Iceland’s seafaring heritage with its fascinating exhibits.

In addition to its maritime attractions, the Old Harbor Area is known for its diverse culinary scene. Here you’ll find numerous seafood restaurants, cozy cafes, and trendy bars. Don’t miss the chance to sample some of Iceland’s fresh seafood delicacies, such as Icelandic lobster and smoked salmon.

For those interested in art and culture, the Old Harbor Area is home to a number of galleries and studios. Explore the local art scene and view exhibitions showcasing both traditional and contemporary Icelandic art.

Accommodation options in the Old Harbor Area range from boutique hotels to apartment rentals. By staying in this neighborhood, you can enjoy the tranquility of the waterfront while still being within walking distance of the city center. It’s also worth noting that the Old Harbor Area is a convenient starting point for various excursions, such as whale watching tours and boat trips to nearby islands.

With its charming atmosphere, stunning views, and culinary delights, the Old Harbor Area is a fantastic choice for those seeking a mix of relaxation and exploration during their stay in Reykjavik.


Thingholt Neighborhood

The Thingholt neighborhood, located just a short walk from downtown Reykjavik, offers a serene and residential setting in the midst of the city. This charming area is known for its historic houses and quiet streets, providing a peaceful retreat for visitors.

One of the highlights of the Thingholt neighborhood is its proximity to several green spaces, including the beautiful Hljómskálagarður Park and the peaceful Tjörnin Lake. These natural oases offer a tranquil escape from the bustling city center, allowing you to unwind and connect with nature.

The Thingholt neighborhood is also home to some of Reykjavik’s cultural attractions. The National Gallery of Iceland is located nearby, showcasing Icelandic artwork from the 19th century to the present day. Additionally, the neighborhood is within walking distance of the iconic Hallgrimskirkja church, allowing visitors to easily explore the architectural marvel.

Accommodation options in the Thingholt neighborhood range from boutique hotels to cozy guesthouses. Many of the establishments offer a blend of modern comfort and historic charm, providing a unique and memorable stay for guests.

While the Thingholt neighborhood offers a more peaceful atmosphere, it is still conveniently located near the hustle and bustle of downtown Reykjavik. This allows visitors to enjoy the best of both worlds – a tranquil setting to relax and recharge, combined with easy access to the city’s vibrant attractions and amenities.

If you prefer a quieter and more residential experience during your stay in Reykjavik, the Thingholt neighborhood is an excellent choice. Embrace the charm of historic houses, take leisurely walks in the nearby parks, and enjoy a peaceful stay in the heart of the city.


Grotta Area

The Grotta area, located on the outskirts of Reykjavik, offers a peaceful and scenic retreat for nature lovers and those seeking a tranquil setting. Situated on the Seltjarnarnes Peninsula, this neighborhood is known for its stunning coastal views and proximity to the Grotta Lighthouse.

The Grotta Lighthouse is a popular attraction and a great spot to catch the breathtaking sight of the midnight sun during the summer months. The area surrounding the lighthouse is a nature reserve, providing a serene environment perfect for leisurely walks or picnics while enjoying the coastal scenery.

In addition to its natural beauty, the Grotta area is home to several bird species, making it a haven for birdwatchers. You can spot various seabirds, including puffins, as well as wading birds and ducks, especially during the migratory seasons.

Accommodation options in the Grotta area are limited but offer a unique opportunity to stay close to nature. Whether you choose a guesthouse or a small hotel, you can enjoy the tranquility and serenity that comes with being away from the bustling city center.

While the Grotta area provides a peaceful retreat, it’s important to note that it is a bit further away from the city’s main attractions and amenities. However, if you prefer a tranquil and scenic environment and don’t mind a short drive or public transportation ride into the city center, the Grotta area is an excellent choice.

Embrace the natural beauty of the Grotta area, explore the coastal trails, and enjoy spectacular views of the ocean and the surrounding landscape. If you are looking for a peaceful getaway amidst nature’s splendor, the Grotta area is the ideal neighborhood for your stay in Reykjavik.


Reykjavik East End

The Reykjavik East End, also known as the East Bank (Austurbær), is a vibrant and up-and-coming neighborhood in Reykjavik. Located on the eastern side of the city center, this area offers a mix of urban attractions, cultural landmarks, and a lively atmosphere.

One of the highlights of the Reykjavik East End is the Harpa Concert Hall and Conference Center, an architectural masterpiece that has become an iconic symbol of Reykjavik. This stunning glass building hosts a variety of concerts, performances, and events throughout the year, making it a must-visit destination for culture enthusiasts.

Exploring the streets of the Reykjavik East End, you’ll find a vibrant arts and design scene. The neighborhood is home to numerous galleries, studios, and boutique stores, showcasing the work of local artists and designers. Take a leisurely stroll to discover unique artwork, handcrafted jewelry, and stylish Icelandic designs.

In terms of dining options, the Reykjavik East End offers a diverse range of restaurants, cafes, and bars. From cozy coffee shops to trendy eateries, you can indulge in a variety of international and Icelandic cuisine. This neighborhood is also known for its nightlife, with several bars and clubs attracting locals and visitors alike.

Accommodation choices in the Reykjavik East End vary from stylish hotels to modern apartments. With its central location and the proximity to various attractions, staying in this neighborhood allows for easy access to the city’s main landmarks and amenities.

The Reykjavik East End is a neighborhood that seamlessly combines culture, art, and urban charm. Immerse yourself in the vibrant atmosphere, enjoy a performance at the Harpa Concert Hall, and discover the creative spirit that permeates the streets of this exciting area.



Choosing the right place to stay in Reykjavik can greatly enhance your overall experience in the Icelandic capital. Each neighborhood in Reykjavik offers its own unique charm and appeal, catering to a variety of preferences and interests. Whether you want to immerse yourself in the vibrant atmosphere of downtown, enjoy the tranquility of the Grotta area, or explore the artistic scene of the Reykjavik East End, there is a neighborhood that will suit your needs.

When deciding where to stay, it’s essential to consider factors such as proximity to attractions, access to transportation, available amenities, safety, and the overall atmosphere of the neighborhood. By keeping these factors in mind, you can find the perfect location that aligns with your preferences and enhances your Reykjavik experience.

While downtown Reykjavik offers a bustling and lively atmosphere with easy access to major attractions, the Grotta area provides a peaceful retreat close to nature. The Old Harbor Area offers a mix of maritime charm and culinary delights, while the Thingholt neighborhood exudes a sense of history and tranquility. The Reykjavik East End appeals to those seeking a vibrant arts and culture scene.

No matter which neighborhood you choose, Reykjavik is a city that will captivate you with its natural beauty, rich culture, and warm hospitality. Enjoy your stay in this extraordinary city and make unforgettable memories as you explore the unique charm of the Icelandic capital.