Reykjavik planners reject nursing home proposal for Nýherjahúsið
Thursday 10th September 2026 on 12:16 in
Iceland
Plans to convert Nýherjahúsið, an office building at Borgartún 37 in Reykjavik, into a nursing home have received a negative response from the city’s planning official, mbl.is reports.
Reitir atvinnuhúsnæði ehf. submitted the inquiry to the city this summer, accompanied by a proposal from THG Architects for 90 to 100 rooms, each measuring 68 square metres.
Reitir highlighted the building’s proximity to Landspítali hospital, views over Faxaflói Bay and Mount Esja, extensive services nearby, south-facing balconies and outdoor areas, and flexibility in the internal layout.
However, the project manager for the planning official said the proposed nursing home would stand at the intersection of busy 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 described as an unsuitable neighbour for a nursing home.
The area is one of the country’s strongest business centres, and Borgartún 37 forms its frontage for people arriving from the east. 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 centre’s existing dynamic.
The planning official also said it would be desirable to have a service centre for older people connected to the nursing home. No such plans currently exist for Borgartún 37, either from the city or other parties. The submitted drawings also did not show measures addressing requirements for outdoor stay areas at service institutions or an outdoor garden for a nursing home.
“Despite various advantages, it is clear that a nursing home at this location is unsuitable, both because of its proximity to busy roads and a petrol station,” the assessment said. It added that the planning official did not support allowing a nursing home at an important location in a dynamic business centre.
Borgartún 37 is a five-storey concrete building with a basement. Designed by Guðni Pálsson for A1 Architects in a postmodern deconstructivist style, it was built in 1999 and 2000 as office space.
The building was originally constructed as the headquarters of the information technology company Nýherji, which later became Origo. It is registered as an office in the property register and has housed various activities under different owners over the years. Skyggnir holding company and its subsidiaries moved their operations from the building to Dalvegur in Kópavogur this summer.