Capital region municipalities welcome review of growth limits

Monday 14th September 2026 on 10:30 in Iceland

housing, Iceland, regional planning

Municipal leaders in Iceland’s capital region have welcomed remarks by Reykjavík Mayor Hildur Björnsdóttir that the city’s new governing majority would not block the implementation of revised regional growth limits, mbl.is reports. Reykjavík has veto power over the arrangements.

Ásdís Kristjánsdóttir, mayor of Kópavogur, said the change in attitude under Reykjavík’s new majority, led by the Independence Party, was welcome. Kópavogur had long called for the growth limits to be reviewed, she said.

According to Ásdís, the assumptions behind the current limits, introduced more than a decade ago, have become outdated. Population growth has been greater than expected, while the impact of an ageing population on the housing market was not taken into account.

She said the limits must not become a political obstacle to residential construction. The regional plan for the capital area should reflect the actual need for housing rather than assumptions made more than 10 years ago, she said.

Ásdís also welcomed a government proposal for the coming parliamentary session to amend planning legislation, including by simplifying decision-making on regional planning. Municipalities that want to develop and meet the needs of a growing population should have room to do so, she said.

Almar Guðmundsson, mayor of Garðabær, said he had always supported extending the growth limits. Garðabær has considerable development opportunities within the current limits, but the Rjúpnahlíð area near the equestrian grounds lies outside them.

He said the municipalities were now speaking more with one voice and that a joint declaration supporting development outside the current limits would make the process easier. Almar also supports removing the veto power held by other municipalities.

Source 
(via mbl.is)