Reykjanesbær unveils plans for nearly 300-home Keflavíkurborgir
Wednesday 16th September 2026 on 17:45 in
Iceland
Reykjanesbær, a municipality in Iceland, has unveiled plans for a new neighbourhood called Keflavíkurborgir, which could accommodate nearly 300 homes when fully built, mbl.is reports.
Vilhjálmur Árnason, the mayor of Reykjanesbær, said he hoped construction could begin next year. He also acknowledged that the municipality needed more housing.
“We find that young people and small and medium-sized companies want to develop detached-home plots,” Árnason said. “We are preparing to be ready for the significant development taking place here and to provide the homes that families are asking for.”
The first phase of Keflavíkurborgir will include four to five streets, or 40 to 60 plots for detached homes, on a 20-hectare area in the northern part of the municipality. According to Árnason, around 300 homes could eventually fit in the neighbourhood.
Part of the first phase has already been included in the municipality’s master plan, while preparations for the rest are under way. A larger area is expected to be developed for Keflavíkurborgir in the future.
Guðlaugur H. Sigurjónsson, director of Reykjanesbær’s environmental department, presented the plans at the municipality’s business and construction conference on Wednesday. He said 14 detached-home plots in the Trölladalur and Asparlundur areas would also be ready for allocation next year.
Billions in planned investment
The conference also discussed the municipality’s substantial construction needs and investment plans in the business community. Proposals included building Myllubakkaskóli, expanding the town’s gymnastics hall and preparing plots for commercial buildings.
Planned investment in the coming years includes two primary schools, two or three preschools, work on sports facilities, an expansion of Fjölbrautaskóli Suðurnesja and extensive sewerage projects. These include a new treatment plant in Helguvík, which is to be called Helga.
“These are billion-krona projects,” Sigurjónsson said.
A declaration of intent to accelerate construction of a new detached-home neighbourhood at Ásbrú is also to be signed by Finance and Economic Affairs Minister Daði Már Kristófersson, Reykjanesbær Mayor Vilhjálmur Árnason and Kadeco managing director Pálmi Freyr Randversson. Thirty-seven detached-home plots are ready for allocation there.