Akureyri Town Centre Set for Further Expansion

2026-02-25 - 11:06

Akureyri’s town centre has undergone significant redevelopment in recent years, with further housing and hotel projects planned. As reported by RÚV, the municipality is also considering redesigning Hafnarstræti, in the centre of the town, as an eco-street. What's the Story? 81 new apartments completed near Austurbrú and Hafnarstræti in central Akureyri; 86 additional hotel rooms due to open this spring, bringing total on Hafnarstræti to around 220 Proposal to designate Hafnarstræti as an eco-street between Bautinn and Drottningarbraut, prioritising pedestrians and cyclists Plans for four new buildings with over 50 apartments at Hofsbót; ongoing harbour-area development at Torfunefsbryggja Signposts in Akureyri. Photo: Golli. Iceland Review. Downtown Development More than 80 new apartments have been completed near Austurbrú and Hafnarstræti, while 86 additional hotel rooms are due to open this spring. This will bring the total number of hotel rooms on Hafnarstræti to around 220. Further development is also planned around Pollinn. The proposed eco-street would prioritise pedestrians and cyclists between Bautinn and Drottningarbraut, reducing vehicle traffic and linking Hafnarstræti more closely with the seasonal pedestrian zone. Pétur Ólafsson, a project representative, said: “Yes, that’s been the idea from the beginning, when development began here, to extend the city center south all the way towards the theater.” Planning has drawn mixed responses locally, particularly regarding construction near older buildings. At Hofsbót, design work is under way for four buildings of three to five floors, comprising more than 50 apartments. “There will then be shops and services on the ground floor and then presumably apartments on the upper floors in most buildings, but there may also be offices or other services.” Elsewhere, construction continues at Torfunefsbryggja, where a new harbour district with restaurants and retail units is taking shape.