Best Areas to Stay in Reykjavík: A Guide to Downtown Districts

Buzzy Miðborg is the downtown area of Reykjavík, stretching from the harbor inward. This central district is home to many of the city’s major landmarks, including the iconic Hallgrímskirkja Church, the stunning Harpa Concert Hall, the National Museum, and the Sun Voyager sculpture.

Truly the heart of Reykjavík, Miðborg encompasses many popular areas, including those we’ll cover next. Beyond the sights, the area boasts a lively dining scene, offering both relaxed local favorites and Michelin-recognized restaurants celebrating New Nordic cuisine.

Diverse accommodations also make it easy for travelers to book a hotel in Reykjavik that suits their preferences and budget. Properties like the apartment-style Reykjavík Residence are perfectly located here to give guests a central base. For more straightforward hotel stays within the district, guests may also consider options such as the Oddsson Downtown Hotel.

Laugavegur Shopping Street Area: Trendy and Central

Though geographically a part of Miðborg, Laugavegur (and its connecting streets) feels like its own distinct destination. Among all the Reykjavik neighborhoods, this one captures the city’s creative spirit. It’s the main pulse of the modern city, a vibrant artery known for its colorful street art, cutting-edge fashion boutiques, and local design shops.

The area has a young, trendy culture, transforming from a bustling shopping street by day into one of the city’s busiest nightlife hubs after sunset. Staying here gives you excellent walkability to major attractions, restaurants, and other trendy spots throughout central Reykjavík. However, travellers should anticipate a lively atmosphere well into the evening, especially on weekends.

Old Harbour District: Scenic and Relaxed

Another top choice for where to stay near Reykjavik downtown, Old Harbour balances the city’s energy with a scenic maritime setting. Located just off the city center, it’s become a lively tourist spot, offering stunning views of the bay and mountains. 

Here you’ll find key attractions such as the Whales of Iceland museum and the Reykjavík Maritime Museum, housed in historic harbour-side buildings. It’s teeming with cultural attractions: the striking Harpa Concert Hall, art galleries, and a cinema featuring volcano and Northern Lights films. 

Staying here gives you excellent access to central Reykjavík while offering a more relaxed vibe than the main shopping streets. However, evenings can still be lively around the harbour restaurants and bars.

Beyond Downtown Reykjavík: Hlíðar, Vesturbær and Other Areas

If you prefer a blend of trendy, traditional atmosphere with easy access to the city center, Vesturbær is an excellent choice. For a quieter, residential stay often with better budget options, look to Hlíðar, which is still walkable to the center. Hotels like Oddsson Midtown are situated in this broader area.

Tips for Choosing Where to Stay in Reykjavik Downtown

Beyond the immediate downtown area, several other Reykjavik neighborhoods offer compelling alternatives for visitors. To select the ideal location for your trip, consider your primary priorities:

• Prioritize Proximity to Attractions: As a first-time visitor, staying in Miðborg ensures you are within easy walking distance of major landmarks.

• The Laugavegur Area is the Hub: If your main goal is to be in the absolute center of the action, with the widest selection of restaurants, cafes, and shops, choose a spot directly on or very close to Laugavegur shopping street.

• Check for Parking Options: If you plan on renting a car to explore outside of Reykjavik, confirm if your hotel or guesthouse offers dedicated parking. Otherwise, you will need to rely on public street parking, which can be limited and paid.

Reykjavík Residence: The Ideal Base in the City Center

When looking for the perfect blend of location, style, and quiet comfort, the Reykjavík Residence is a standout. Rather than a single building, it is a historic collection of eight separate, beautiful properties. Each one is centrally located within a short stroll of the main reception, the popular wine bar, and bustling Miðborg.

This multi-property concept is well-suited for extended visits, group travel, and the independent explorer. Each apartment and studio provides a fully-equipped kitchen or kitchenette, granting guests the flexibility to cook and control their travel budget. 

By combining a residential-style setting with premium hotel services, the Reykjavik Residence location offers the best of Miðborg. Truly, it’s a true home base for exploring the vibrant Iceland capital.

FAQs About Staying in Downtown Reykjavík

Which district is best to stay in Reykjavík?

The Miðborg (City Center) district, particularly around the Laugavegur area, is generally considered the best due to its central location and vibrant culture.

Is it better to stay in downtown Reykjavík?

Yes, staying downtown is highly recommended as it maximizes your time, making most major sights, restaurants, and nightlife easily accessible by foot.

How walkable is downtown Reykjavík?

Downtown Reykjavík is exceptionally walkable. Its compact nature means you can comfortably reach most main attractions within a 5- to 15-minute stroll.

Where to stay in Reykjavík for a night?

For a single night, stay in Miðborg (City Center) to ensure you are close to the main streets, transportation links, and dining options.

What is the main tourist street in Reykjavik?

Laugavegur shopping street is known for its shopping, colorful street art, trendy cafes, and lively nightlife.

Where is the best area for first-time visitors to stay in Reykjavík?

Stay in Miðborg (City Center) to be close to top attractions, restaurants, and shops, great for first-time visitors.

Book Your Stay in the Heart of Iceland’s Capital at Reykjavík Residence

Choosing the right downtown base ensures your Reykjavík adventure is effortless and deeply rewarding. Reykjavík Residence offers the perfect blend of a central, walkable location with the independence and comfort of a stylish apartment. Secure your spacious, self-catering accommodation now to experience the ultimate Icelandic city stay.