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    Home EUROPE Iceland

    Complicated, difficult and time-consuming to condense in the city

    The Analyst by The Analyst
    April 27, 2026
    in Iceland
    Complicated, difficult and time-consuming to condense in the city


    “I think this is an obvious example of how complex, difficult and time-consuming it can be to consolidate in the city for housing development,” says Einar Þorsteinsson, leader of the Progressive Party in the city and former mayor.

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    It comes down to finding Bjögga’s successor

    The reason is the comments of Friðbert Friðbertsson, Hekla’s CEO, about the strange working practices and roundabout ways that characterized Hekla’s relations with the city during the construction of the Heklureit in Laugaveg and Hekla’s removal from the field.

    Construction must begin in the east

    “Time-consuming housing development is not what the residents of Reykjavík need. We rather need efficient development, and that is why we need to start housing development in areas to the east of the city, where it is easier to plan and get housing development started quickly and efficiently.”

    Einar says that he, as mayor, offered the company a plot that was not suitable, but it was close to the golf course in Grafarholt, a stone’s throw from Bílaland and other car dealers.

    “It was a plot of land that we were putting up for sale. I said that I wanted him in the city, but that he had to bid for the plot, but of course we have to put everything up for auction.”

    Planning mistakes must be prevented

    Einar says he knows that it is possible to take better care of large projects like the one that Friðbert wants to say that the city has not handled well enough. He says he has talked to most of the developers about their relationship with the city.

    You can have a much more powerful conversation about the projects earlier in the planning process. In this way, expectations about how the projects will turn out will be synchronized right from the start.

    “So people can run off and build. It’s too complicated as it is today, and the city can improve its administration and its services to developers through dialogue and cooperation so that the development is more efficient, faster and more thorough.”

    Einar says that he emphasized that those who own plots of land and developers bring to the table designers, landscape architects and experts from the city’s planning representative, and right from the beginning it is decided what the development can look like. It is both in order to be able to have a conversation with the local environment, i.e. other residents, and to ensure that apartments are being designed for people where there are green areas, enough parking and lighting inside the apartments to prevent planning mistakes, as has unfortunately been the case in the city in recent years.

    “It should be easy and convenient to build in Reykjavík. Because housing development is one of the city’s most important projects. The way we have been building in the last election periods is not serving the needs of the market today. We need smaller apartments and we need cheaper, more affordable apartments. We will not get those apartments with the current planning policy of the Confederation and the parties that have worked with it.”

    They are not impressed with this service

    When asked, Einar says that it is not good to hear how the city has maintained communication with Hekla. He says the relationship reflects the attitude of the ruling party or those who have been in control of the city towards the private car.

    “They don’t like having these services here in the city, car dealerships and car dealerships. It may reflect their attitude towards the family car and those who use it. They are trying to change people’s needs rather than simply meeting them.”

    It’s just bad to see Hekla move to another municipality. Reykjavík is the capital of business life and it should be of service to business life. We should attract companies rather than push them away.”





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