Reykjavík softens opposition to proposed nursing home

Thursday 10th September 2026 on 22:15 in Iceland

nursing homes, Reitir, reykjavik

Reykjavík City has taken a more positive view of plans to convert Nýherjahúsið at Borgartún 37 into a nursing home after property company Reitir revised its proposal, mbl.is reports.

The city’s planning representative had earlier responded negatively to the idea, which Reitir submitted for consideration this summer.

The proposal, prepared by THG Architects, calls for 90 to 100 rooms, each measuring 68 square metres. Reitir cited the building’s proximity to Landspítali hospital, views over Faxaflói bay and Mount Esja, nearby services, south-facing balconies and outdoor areas, and flexibility in the interior layout as key advantages.

However, a planning assessment noted that the proposed nursing home would stand at the intersection of busy roads, including Sæbraut, Kringlumýrarbraut and Borgartún. This could create risks from air pollution and noise in outdoor areas. The assessment also described a petrol station south of the plot as an unsuitable neighbour for a nursing home.

Lára Hilmarsdóttir, Reitir’s communications director, told mbl.is that the company received more positive feedback from Reykjavík after revising the proposal. The main change concerns the design of the outdoor area, which was revised to make it more suitable.

The proposal remains under consideration, Lára said, adding that plans of this kind often change during the process.

Reitir has traditionally focused on leasing commercial property but is expanding into construction and development. The company is also planning a new nursing home in Akureyri, after its bid was selected as the most favourable by FSRE in a recent tender. In addition, Reitir is converting Icelandair’s offices on Nauthólsvegur into a nursing home.

“We are examining how we can meet this need, either through new construction or by converting buildings into nursing homes,” Lára said.

Source 
(via mbl.is)