Construction begins on 450-home Arnarland district

Wednesday 2nd September 2026 on 23:45 in Iceland

construction, garðabær, housing

Construction has begun on a new district in Garðabær, mbl.is reports. Arnarland will include about 450 homes, a health cluster and approximately 36,000 square metres of office, service and retail space when fully developed.

Heavy machinery began work on the first road-building projects this week. The district is located between Arnarnes and Smárahverfi.

Garðabær Mayor Almar Guðmundsson told mbl.is that the road construction contract was put out to tender in the spring and that the first projects are now under way.

“This is the beginning,” Guðmundsson said. The developer will next submit building applications and begin work on the first part of the development, which will be the commercial buildings closest to Hafnarfjarðarvegur. Construction on the first buildings could begin this winter, although the contractor will set its own timetable.

The development will be divided into two sections. Buildings of up to seven storeys near Hafnarfjarðarvegur will contain the 26,500-square-metre health cluster, as well as office, service and retail premises and a preschool.

The planned route of Borgarlína will run east of the commercial buildings. On the other side, apartment buildings of two to six storeys are planned.

Arnarland is owned by Arnarland ehf., which is owned by Arcus ehf., a sister company of construction firm ÞG verk. Landey ehf. and Fasteignafélagið Akurey ehf. previously owned the land and had planned the development. Arcus bought the company and the entire area about a year ago.

Source 
(via mbl.is)