New square planned for Reykjavík government quarter

Thursday 20th August 2026 on 11:15 in Iceland

housing, reykjavik, urban planning

Plans to redevelop the Stjórnarráðsreitur, a city-centre block housing ministries and other public operations, are moving forward and construction could begin soon, mbl.is reports. The plans include substantial new housing, space for services and a new square at the centre of the area.

A planning description for the block was published this summer. The comments received are not expected to delay the process, and a proposal for a new detailed plan is expected to be presented to Reykjavík’s Environment and Planning Council this autumn. The detailed plan could be approved in December.

“We elected representatives welcome the fact that this matter is moving forward. It has been in preparation for a long time,” said Guðný María Jóhannsdóttir, chair of the council.

The planning area is bounded by Lindargata, Ingólfstræti, Skúlagata and Klapparstígur. The new plan provides for a mix of Icelandic government operations, public services, cultural activities and housing. Several ministries and other public bodies are already located on the block or nearby.

Guðný María said security issues would need to be carefully considered because of the activities carried out in the area.

Council members expressed strong support for the project at a recent meeting. The majority said it presented a unique opportunity to create a mixed and vibrant city-centre neighbourhood combining public administration, services, cultural activities and housing. A representative of the Social Democratic Alliance also welcomed the ambition of the overall plan and improved access to public spaces.

“This is an exceptionally beautiful and important block in the city centre, and it will be very exciting to start looking at the development of this area as a whole,” said Guðný Margrét.

The block will be divided into several development areas. Areas A and B are planned for office buildings for ministries and state institutions. Areas C and D are intended for public operations and services designed to activate the urban space.

Areas E and G, along Lindargata on the eastern side of the block, will contain housing, with shops and services also permitted on the ground floors. Area F, at the junction of Skúlagata and Klapparstígur, is planned for a large residential building or a hotel.

The planning work is based on the winning proposal by T.ark and SP(R)INT Studio in a 2018 competition on the future of the government quarter.

The new plan will require changes to the local road network. Smiðjustígur will be extended to Skúlagata; it currently runs only from Hverfisgata to Lindargata. Skuggasund will also be extended to Skúlagata, while general traffic on the street will be discontinued.

A new open square is planned at the junction of Sölvhólsgata and Skuggasund. It will serve as the focal point of the area, while Sölvhólsgata will become its main route. Green gardens and pleasant spaces for residents, people working in the area and visitors to the city centre are planned between the buildings.

Source 
(via mbl.is)