Reykjavík neighborhoods: 101 vs 105 vs Vesturbær explained

Choosing where to live or stay in Reykjavík can be confusing due to overlapping postal codes and distinct local characters. The three most central areas—101 (Miðborg), 105 (Háaleiti and parts of Laugardalur), and Vesturbær (postal code 101/107)—offer very different experiences. This guide breaks down the differences in housing, dining, nightlife, green spaces, and everyday life, helping you decide which neighborhood suits your needs.

1. 101 – The Heart of Reykjavík

Postal code 101 covers the historic city centre, including the old town, the harbour, and the main shopping street Laugavegur. It is the most densely populated area and the epicentre of tourism, nightlife, and culture.

Housing and Cost

Apartments in 101 are the most expensive per square metre in Reykjavík. A one-bedroom flat (50 m²) typically rents for 180,000–250,000 ISK/month (€1,200–1,700). Many buildings are historic, dating from the early 20th century, with wooden floors and high ceilings but often lacking modern insulation. Newer luxury developments near the harbour, such as Harpa Concert Hall and the Grandi area, command higher prices.

Dining and Nightlife

101 is packed with restaurants, bars, and clubs. Fine dining options include Dill (Michelin-starred) and Matur og Drykkur. Casual spots like Bæjarins Beztu Pylsur (famous hot dog stand) and Kaffi Vinyl are local favourites. The nightlife centre is along Laugavegur and Tryggvagata, with venues like Kaffibarinn, Prikið, and Húrra. Weekend crowds spill onto the streets until 5 am.

Culture and Attractions

Major landmarks include Hallgrímskirkja church, the National Museum of Iceland, and the Reykjavík Art Museum (Hafnarhús). The Old Harbour offers whale watching tours and the Whales of Iceland exhibition. Kolaportið flea market (weekends) is a draw for vintage and local food.

Pros and Cons

• Pros: Walkability, vibrant nightlife, cultural venues, waterfront.
• Cons: High noise levels (especially weekends), expensive rent, limited parking, tourist crowds.

2. 105 – The Residential and Green Belt

Postal code 105 covers the eastern part of central Reykjavík, including Háaleiti, Laugardalur, and parts of Hlemmur. It is a mix of residential streets, large parks, and sports facilities. It feels less touristy than 101 but still well-connected.

Housing and Cost

Rents are slightly lower than in 101. A one-bedroom apartment (50–60 m²) costs 150,000–200,000 ISK/month. The housing stock includes 1960s concrete blocks and newer apartment buildings in Háaleiti. Laugardalur has detached houses with gardens, popular with families.

Dining and Shopping

105 has fewer restaurants than 101, but quality is high. Matur og Drykkur (also in 101) has a sister café? Actually, Matur og Drykkur is in 101. In 105, notable spots include Kaffi Mokka (oldest coffee house) and Bakaríið Sandholt (bakery). The Hlemmur Mathöll food hall (opened 2017) offers diverse stalls like Kronon (Icelandic street food) and Bæjarins Beztu outpost. For groceries, Krónan and Bónus are located near Háaleiti.

Green Spaces and Recreation

Laugardalur park is the largest green area in Reykjavík: it contains the Reykjavík Botanical Garden (free entry), the Family Park and Zoo, and Laugardalslaug geothermal swimming pool (one of the best in the city). The Reykjavík Sports Hall and Hlíðarendi football stadium are nearby.

Transport and Connectivity

105 is well-served by buses (routes 1, 3, 11, 12). Hlemmur bus terminal is a major hub. Biking is easy thanks to flat terrain and bike lanes. The area is a 10–15 minute walk from 101.

Pros and Cons

• Pros: Quiet residential streets, large parks, family-friendly, lower rent, good public transport.
• Cons: Fewer nightlife options, less walkable to downtown core (but still close), some areas feel suburban.

3. Vesturbær – The Old West End

Vesturbær, meaning “west town,” is the historic western part of Reykjavík, roughly covering the area west of Hverfisgata and north of Frakkastígur. Its postal code is mostly 101 (western part) and 107. It is known for its quiet, leafy streets, historic wooden houses, and a strong sense of community.

Housing and Cost

Vesturbær is one of the most desirable residential areas. Apartments are scarce and expensive. A one-bedroom flat (50 m²) can cost 200,000–280,000 ISK/month. Houses are often well-preserved timber buildings from the early 1900s, painted in traditional colours. The area is popular with families and professionals.

Dining and Local Life

Vesturbær has a handful of excellent eateries. Kaffi Vest is a beloved brunch spot. Skál offers modern Icelandic cuisine. Bakaríið Sandholt has a branch on Frakkastígur. The neighbourhood feels more local and less touristy than 101. Vesturbæjarlaug swimming pool (built 1961) is a community hub with geothermal pools and a steam bath.

Culture and Attractions

Vesturbær is home to the University of Iceland campus (partly), the National Museum (actually in 101), and the Nordic House (cultural centre). The Reykjavík Maritime Museum is at the old harbour. The area has several small art galleries and the Kjarvalsstaðir art museum (in 101 but adjacent).

Pros and Cons

• Pros: Quiet, charming architecture, strong community feel, close to downtown but peaceful.
• Cons: Very high rents, limited rental availability, fewer shops and restaurants compared to 101.

4. Comparison Table

5. Which Neighborhood Should You Choose?

Your choice depends on your priorities:

• Tourists and nightlife lovers: 101 is unbeatable for proximity to bars, restaurants, and attractions. Be prepared for noise.
• Families and remote workers: 105 offers more space, parks, and quieter streets while still being close to downtown. Lower rent is a bonus.
• Those seeking charm and tranquility: Vesturbær is ideal if you can afford it and find a rental. It’s perfect for a peaceful lifestyle with easy access to the centre.

For more on living in Iceland, see our Complete Guide to Iceland 2026. For dining tips across the city, check Where to Eat in Reykjavík: Food Halls & Fine Dining.

6. Frequently Asked Questions

Is 101 or 105 safer?

Both are very safe. 101 has more petty crime (pickpocketing) due to crowds, but violent crime is rare.

Which area has the best schools?

105 has several primary schools (e.g., Laugalækjarskóli) and is close to the University of Iceland. Vesturbær also has good schools (e.g., Vesturbæjarskóli).

Can I find parking easily?

Parking in 101 is expensive and scarce. 105 and Vesturbær have more street parking, but many apartments include a parking spot.

Which neighborhood is best for families with young children?

105, due to Laugardalur park, the zoo, and family-friendly pools. Vesturbær is also good but more expensive.

7. Final Thoughts

Reykjavík’s central neighborhoods each have a distinct identity. 101 is the vibrant core, 105 is the green family zone, and Vesturbær is the quiet historic enclave. No matter which you choose, you’ll be within walking distance of the city’s best offerings. For a broader perspective on living in Iceland, read our Complete Guide to Iceland 2026.

Related Articles

• The Complete Guide to Iceland 2026
• Where to Eat in Reykjavík: Food Halls & Fine Dining
• Iceland Travel Tips: What to Know Before You Go
• Best Restaurants in Reykjavík: A Local’s Guide
• Living in Iceland: Expat Guide