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The district east of Njarðargata, between Skólavörðuholt and Hringbraut, was developed in 1927-33, in keeping with the town plan that featured denser development within Hringbraut. As in the western district, houses are arranged with reference to the sun. This was a district of prosperous middle-class people, and it includes some of the most artistically interesting residential buildings of the 1920s and 30s.

Neobaroque and classicism are com­mon, and most of the houses are of concrete. There are also many houses that represent the functionalist style, which was the predominant trend in Icelandic architecture after 1930. On Freyjugata. Eiríksgata, Barónsstígur and Leifsgata, rows of houses can still be seen with their original pebbledash that is typical of the period.