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Breiðholt / Árbær (suburbs)
Reykjavík, Iceland · Neighborhood Guide
Southern suburban districts with newer housing stock, larger apartments, and significantly lower rents. Less walkable but well-served by bus; good supermarkets and practical everyday amenities.
Last updated March 2026
Breiðholt / Árbær (suburbs) at a Glance
Budget-Friendly
Cost Level
ISK 150,000–ISK 220,000/month (~$1,090–$1,590)
Rent Range
Safe — residential suburbs, multicultural; slightly less polished than central areas
Safety
150–300 Mbps fiber; good coverage
Internet
Who Lives in Breiðholt / Árbær (suburbs)?
Immigrant communities (Polish, Filipino, Southeast Asian), budget-conscious Icelanders, young families.
Living in Breiðholt / Árbær (suburbs) — Practical Details
Walkability
Low — suburban layout, car or bus needed for most things
Grocery & Food Access
Excellent — Bónus, Krónan, and Nettó supermarkets in both suburbs
Getting Around
- Strætó bus to downtown (25–30 min)
- Car recommended for commuting
- Park-and-ride available
Nearby Coworking
- None locally — bus to central Reykjavík coworking (25–30 min)
Insider Tips for Breiðholt / Árbær (suburbs)
- 1Breiðholt and Árbær are Iceland's most multicultural neighbourhoods — diverse food shops and cultural events
- 2Rent is 40–50% cheaper than downtown — the savings can cover a car for commuting
- 3The Árbær Open Air Museum is a charming collection of historic Icelandic buildings — free for residents on certain days
- 4Breiðholt has a slightly rougher reputation but is genuinely safe — Iceland's 'rough' is still safer than most European cities
FAQ — Breiðholt / Árbær (suburbs), Reykjavík
What is Breiðholt / Árbær (suburbs) like for expats?
Breiðholt / Árbær (suburbs) is a budget-friendly neighborhood in Reykjavík. Southern suburban districts with newer housing stock, larger apartments, and significantly lower rents. Less walkable but well-served by bus; good supermarkets and practical everyday amenities. Best for: Expats on tighter budgets or those needing more space, willing to commute by bus or car for the savings.
How much does it cost to live in Breiðholt / Árbær (suburbs), Reykjavík?
Breiðholt / Árbær (suburbs) is classified as "Budget-Friendly" in Reykjavík. Typical rent: ISK 150,000–ISK 220,000/month (~$1,090–$1,590). Total monthly budget in Reykjavík: ISK 450,000–700,000.
Is Breiðholt / Árbær (suburbs) safe for expats?
Safe — residential suburbs, multicultural; slightly less polished than central areas
Who lives in Breiðholt / Árbær (suburbs)?
Immigrant communities (Polish, Filipino, Southeast Asian), budget-conscious Icelanders, young families.
Other Neighborhoods in Reykjavík
Miðborg (Downtown)
LuxuryThe compact historic core — Hallgrímskirkja, Laugavegur shopping street, harbour promenade, and Reykjavík's densest concentration of restaurants, galleries, and nightlife. Walkable, vibrant, and the most expensive real estate on the island.
Vesturbær
Higher-EndQuiet, residential west-side neighbourhood with the city's most charming streets of colourful traditional houses, the Sundhöll swimming pool, and proximity to the domestic airport and University of Iceland. Sought-after family neighbourhood.
Hlíðar
Higher-EndLeafy, established residential area on the slopes above the city with views over the bay. A mix of older family homes and newer apartment blocks; quiet and green, with good schools and easy bus access downtown.
Laugardalur
Mid-RangeEast-side district centred on the city's main geothermal outdoor swimming complex (Laugardalslaug), botanical garden, and sports facilities. More affordable than the west side; popular with young families and university students.
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