Reykjavik, Iceland’s vibrant capital, offers a unique blend of stunning landscapes, rich culture, and a buzzing atmosphere that draws visitors from around the world. Whether you’re here to chase the Northern Lights, explore the city’s quirky charm, or indulge in Icelandic food, finding the perfect place to stay is key to making the most of your trip. This guide will help you navigate the best areas to stay in Reykjavik, highlighting top activities, local flavours, and everything that makes each neighbourhood special.
Best Places to Stay in Reykjavik for Every Type of Traveller
Reykjavik may be a small city, but its distinct neighbourhoods each offer something unique. Whether you’re a solo traveller, a family, or someone looking for a more tranquil retreat, the area you choose to stay in can make all the difference. Let’s dive into the best areas in Reykjavik, so you can decide where to base yourself for an unforgettable experience.
Downtown Reykjavik – The Heart of the Action
For first-time visitors, staying in downtown Reykjavik is the ideal choice. The city centre is packed with vibrant cafes, eclectic shops, and an exciting nightlife scene. It’s the perfect spot if you want to be in the middle of all the action, with easy access to top attractions such as Hallgrímskirkja, Harpa Concert Hall, and the Sun Voyager sculpture.
Downtown Reykjavik is also home to a wide range of restaurants serving traditional Icelandic dishes. Be sure to try hákarl (fermented shark), a true Icelandic delicacy, or enjoy a hearty bowl of lamb soup (kjötsúpa), perfect for warming up after a day of exploring. The area’s compact size makes it easy to explore on foot, and you’ll find a mix of cultural and historical sites to keep you entertained.
Top Activities:
- Visit Hallgrímskirkja for panoramic views of the city.
- Explore the Harpa Concert Hall, an architectural marvel.
- Stroll around the Old Harbour and enjoy the views of the water and mountains.
- Take part in Reykjavik’s lively nightlife, with bars and clubs offering a mix of local and international music.
The Old Harbour – For a Quieter, Scenic Stay
If you’re looking for a quieter, more scenic area, the Old Harbour is a fantastic choice. This area offers a perfect blend of old-world charm and modern amenities. You’ll find a variety of cosy cafes, seafood restaurants, and boutique shops nestled along the waterfront. The Old Harbour is also home to a number of tour operators offering trips to see the Northern Lights, whale watching, and puffin watching, making it an ideal base for nature enthusiasts.
Here, you can enjoy a slower pace of life, with beautiful views of the surrounding mountains and the harbour. The Old Harbour offers a more relaxed atmosphere, perfect for those who want to escape the hustle and bustle of the city centre while still being close to Reykjavik’s main attractions.
Top Activities:
- Take a whale-watching tour or embark on a boat trip to see puffins.
- Enjoy fresh seafood at one of the many waterfront restaurants.
- Visit the Reykjavik Maritime Museum to learn about Iceland’s seafaring history.
- Walk along the harbour for stunning views of the city and the surrounding nature.
Laugardalur – A Peaceful Retreat Near Nature
For those seeking a more peaceful and nature-oriented stay, Laugardalur is an excellent option. This residential area is located just a short distance from the city centre, offering a more relaxed atmosphere. It’s home to Reykjavik’s famous geothermal parks, including Laugardalslaug, one of the city’s largest swimming pools. It’s also where you’ll find the Reykjavik Zoo and Family Park, making it an ideal spot for families.
Laugardalur is perfect for anyone who wants to experience Reykjavik’s natural beauty while staying close to the city’s amenities. You can explore lush green spaces, unwind in the hot springs, and take a leisurely walk along the many walking trails in the area.
Top Activities:
- Relax in the geothermal pools at Laugardalslaug.
- Visit the Reykjavik Zoo and Family Park, home to Icelandic animals.
- Take a stroll in Laugardalur Park, a peaceful green space perfect for picnics.
- Visit the Árbaer Open Air Museum to learn about Icelandic rural life.
Other Areas Worth Considering
While downtown Reykjavik, the Old Harbour, and Laugardalur are the most popular areas, there are other neighbourhoods worth considering for your stay. If you’re looking for a more local experience, consider staying in areas like Vesturbær, which offers a mix of residential charm and proximity to the city centre. This area is quieter, with beautiful homes and local cafes, but still within walking distance of Reykjavik’s top attractions.
If you’re searching for unique places to stay in Reykjavik, you’ll find boutique accommodations that reflect the creative, local vibe of this neighbourhood. Here are some standout options:
- Stay in artsy guesthouses with eclectic decor and local art.
- Choose themed hostels that offer a fun and social atmosphere.
- Book design-forward hotels with modern amenities and stylish interiors.
- Experience cozy apartments with a homey feel, perfect for longer stays or those seeking privacy.
Top Activities:
- Explore local cafes and shops in quieter neighbourhoods.
- Visit the Vesturbæjarlaug swimming pool, a local favourite.
- Take a walk along the scenic coastline, with views of the mountains and sea.
Top Recommended Hostels in Reykjavik
Now that you know the best areas to stay in Reykjavik, here are some top-rated hostels available on Hostelworld, offering everything from budget-friendly options to unique, quirky stays. These hostels are perfect for travellers looking for a great place to rest after a day of exploring the city.
Hostel recommendations:
- Kex Hostel Reykjavik – A trendy and vibrant hostel with an industrial design, perfect for travellers who want to immerse themselves in Reykjavik’s local culture and enjoy a laid-back atmosphere.
View on Hostelworld - Reykjavik Loft HI Eco Hostel – A stylish, eco-friendly hostel located in the heart of Reykjavik, offering a relaxed atmosphere and a rooftop terrace with stunning city views. Perfect for those who want to enjoy comfort and sustainability while exploring the city.
- Baron’s Hostel – A budget-friendly, central hostel with a warm, welcoming atmosphere. Ideal for travellers looking for easy access to Reykjavik’s attractions, including the Old Harbour and Hallgrímskirkja.
- CityHub RVK – A modern, tech-savvy hostel with a unique concept, offering private sleeping pods and a vibrant communal space. Perfect for solo travellers and digital nomads looking for comfort and convenience.
- Nordic Hostel – A welcoming, budget-friendly option with a homely vibe, offering easy access to Reykjavik’s main attractions. Ideal for travellers looking for a relaxed, social atmosphere and a central location.
- Lækur Hostel – A cozy, family-run hostel located just outside the city centre, offering a peaceful stay with a homey feel. Great for those looking to explore Reykjavik while enjoying a quieter environment.
- Bus Hostel Reykjavik – A budget-friendly option with great access to the bus station and city centre, ideal for travellers looking to explore Reykjavik and beyond.
View on Hostelworld
Where to Stay in Reykjavik for First Time
For first-time visitors to Reykjavik, staying in the city centre is ideal, as it provides easy access to top attractions, restaurants, and shops. The Downtown Reykjavik area offers a vibrant atmosphere, while Old Harbour is great for a more relaxed, scenic stay. If you prefer a quieter experience, consider Seltjarnarnes or Laugardalur, which are still close to the city but offer a more peaceful environment.
First-Time Travel Tips for Iceland
- Pack for all weather: Iceland’s weather can be unpredictable, so bring layers, waterproof clothing, and sturdy shoes.
- Plan for daylight hours: Depending on the season, daylight hours can be very short or long. Plan your sightseeing accordingly.
- Rent a car: While Reykjavik has excellent public transport, renting a car gives you the flexibility to explore Iceland’s stunning landscapes at your own pace.
- Be prepared for high costs: Iceland is known for being expensive, so budget for meals, tours, and accommodation accordingly.
Conclusion – Finding Your Perfect Stay in Reykjavik
Reykjavik is a city that offers something for every type of traveller. Whether you’re drawn to the vibrant city centre, the tranquil beauty of Laugardalur, or the charm of the Old Harbour, you’ll find a neighbourhood that suits your style. The city’s compact size and easy access to top attractions make it an ideal destination for both short and long stays.
With a wide range of hostels to choose from, including budget-friendly options and unique stays, you’re sure to find the perfect place to call home during your Icelandic adventure. Whether you’re here for the Northern Lights, the food, or the incredible natural beauty, Reykjavik is sure to leave you with unforgettable memories.
FAQs: Where to Stay in Reykjavik
Where is the best area to stay in Reykjavik?
The best area depends on your preferences. Downtown Reykjavik is ideal for first-time visitors, while the Old Harbour offers a quieter experience with scenic views.
Where to stay in Reykjavik for Northern Lights?
For the best Northern Lights experience, stay in areas outside Reykjavik’s city centre, like Þingvellir National Park or Reykjanes Peninsula, where light pollution is minimal. These spots offer clearer skies for a better view of the aurora.
What are the best budget places to stay in Reykjavik?
Kex Hostel, Reykjavik Hostel Village, and Bus Hostel Reykjavik are excellent budget-friendly options, offering affordable dorms and easy access to the city’s attractions.
Is Reykjavik a good place for families?
Yes, Reykjavik is family-friendly, with several hostels offering family rooms and easy access to parks and museums.
What are some cheap places to stay in Reykjavik?
Reykjavik can be quite expensive, but there are more affordable options in areas like Laugardalur, Vesturbær, and Grandi. These neighbourhoods offer budget-friendly hostels and guesthouses, providing a great base to explore the city without breaking the bank. Keep in mind that Reykjavik is generally more expensive than other cities, but with careful planning, you can find affordable accommodations in these areas.
Where is the best place to stay in Reykjavik if you’re a nature lover?
If you’re a nature lover, staying in Laugardalur is ideal. This area is close to Laugardalur Park, Reykjavik’s largest green space, offering plenty of walking trails, gardens, and access to outdoor activities. Additionally, Grandi is a great choice, as it’s near the coastline, with scenic views and easy access to nature reserves. Both areas provide a peaceful atmosphere while still being close to the city’s attractions.
Where to stay in Reykjavik with family?
For families visiting Reykjavik, areas like Laugardalur and Vesturbær are excellent choices. Both offer quieter, more residential vibes with easy access to family-friendly attractions like parks, museums, and swimming pools. These neighbourhoods also have a range of affordable accommodations, including guesthouses and family rooms in hostels, making them ideal for a comfortable stay with children.
What are the best places to stay in Reykjavik, Iceland, to try local food?
To experience the best of Reykjavik’s local cuisine, stay near the Old Harbour or downtown Reykjavik. These areas are home to some of the city’s top restaurants serving traditional Icelandic dishes like hákarl (fermented shark) and lamb stew. The Old Harbour, in particular, offers fresh seafood and a variety of eateries where you can sample Icelandic specialties. Staying in these central locations will give you easy access to local food markets and dining spots that showcase Icelandic flavours.
What are some great places to stay in Iceland other than Reykjavik?
Consider staying in Akureyri, Iceland’s second-largest city, known for its charm and nearby natural wonders like Lake Myvatn. Vik offers stunning black sand beaches and glaciers, while Seydisfjordur in the East provides a peaceful, picturesque escape. Each destination offers unique experiences and a range of accommodations.
Where is the best place to stay in Reykjavik if you want to be close to nightlife?
If you’re looking to experience Reykjavik’s vibrant nightlife, downtown Reykjavik is your best bet. This area is home to numerous bars, clubs, and live music venues, making it perfect for those who want to explore the city’s nightlife scene. Staying here also puts you within walking distance of popular attractions, restaurants, and cafes, so you can enjoy
