Reykjavík rejects nursing home plan for Nýherjahúsið
Thursday 10th September 2026 on 15:15 in
Iceland
Plans to convert Nýherjahúsið, an office building at Borgartún 37 in Reykjavík, into a nursing home have received a negative response from the city’s planning representative, mbl.is reported.
Property company Reitir atvinnuhúsnæði ehf. submitted the inquiry to Reykjavík this summer. A proposal by THG architects included 90 to 100 care units, each measuring 68 square metres.
Reitir cited the building’s proximity to Landspítali hospital, views over Faxaflói and Esja, nearby services, balconies, south-facing outdoor areas and flexibility in the internal layout as the proposal’s main advantages.
However, the project manager for the planning representative said the proposed nursing home would stand at the intersection of heavily trafficked roads, including Sæbraut, Kringlumýrarbraut and Borgartún. This could expose outdoor areas to air pollution and noise. A petrol station south of the property was also considered an unsuitable neighbour for a nursing home.
The assessment said the district was one of the country’s strongest business centres, with Borgartún 37 serving as its eastern gateway. Although housing is permitted in the area and a nursing home could contribute to a mix of uses, the project manager said this could negatively affect the business centre’s dynamics.
The assessment also noted that a service centre for older people should be provided in connection with a nursing home. No plans for such a centre at Borgartún 37 had been presented by the city or others, and the proposal drawings did not show measures addressing that requirement.
“It is clear from the above that, despite various advantages, a nursing home at this location is poorly situated, both because of its proximity to busy roads and a petrol station,” the assessment said.
It added that the proposal did not meet planning regulations on outdoor residential areas at institutional sites or the requirements for an outdoor garden at nursing homes. The planning representative also did not favour permitting a nursing home at an important location in the dynamic business centre.
Borgartún 37 is a five-storey concrete building with a basement. Designed by Guðni Pálsson for A1 Arkitektar in a postmodern deconstructivist style, it was built between 1999 and 2000 as office space.
The building was originally constructed as the headquarters of information technology company Nýherji, which later became Origo. It has since housed various operations and been owned by different property funds and companies. The building is registered as an office in the property register.
Origo is now part of Skyggnir eignarhaldsfélag hf., along with other companies. Skyggnir and its subsidiaries moved their operations to Dalvegur in Kópavogur this summer.