Resuscitating Iceland's Capital

"'Today we have a city centre with every possibility to fully develop as a central service and shopping district,' says Helga Bragadóttir, head of Reykjavík City's Planning Office. She adds that newly approved planning projects present some great opportunities for the future and that in the master plan for general land use for Reykjavík, dense residential areas in the city centre, redeveloping neglected spots and intermixing new apartment buildings, shops and offices are given special importance. This, she says, will be done with the aim of increasing job opportunities in the city centre and increasing its inhabitants, in harmony with the present environment."

"Five years ago suburbanisation reached a certain climax with a depressing effect on the city centre. Large, well-established companies as well as fashion shops and utility stores closed their doors and moved their businesses to Kringlan, Smáralind or to the suburbs. Banks more or less disappeared in the centre and large spaces stood empty on Laugavegur, resulting in the area being bypassed by many residents altogether as the lack of comprehensive service was more evident than ever."