A Growing Capital

Gufunes is Reykjavik’s newest neighborhood, created following the winning entry in a
design competition held in cooperation with the Association of Icelandic Architects.
The winners were the Dutch firms Jvantspijker and Felixx, whose vision was that
Gufunes should serve as a kind of outlet for young people who prefer vibrancy and
urban life to suburban living. Reykjavik’s aim with the Gufunes project was to make it
easier for young people to acquire their first homes.

The emphasis is on making use of environmental qualities and local character as the
foundation for a community where opportunity, affordability, and experience are
central. The neighborhood is being built on the attractive site of the former fertilizer
plant in Gufunes, which began operations in 1954 as Iceland’s first heavy industry,
financed through the Marshall Plan (the U.S.-led postwar aid program), far outside the
town at the time.

The plant shut down in 2001 after an explosion, though for more than a decade
Reykjavik City had been trying to close it down as the factory site had long since been
overtaken by urban expansion. Gufunes is undeniably a beautiful location by the “blue
straits,” and the old factory has been transformed into a film studio. It will be
fascinating to follow the development of the area — residents have already moved into
the first stage of the project. Icelandic Times / Land & Saga took the pulse of the
neighborhood.

The Gufunes Area
The Gufunes Area
The Gufunes Area
The Gufunes Area
The Gufunes Area
The Gufunes Area
The Gufunes Area
The Gufunes Area
The Gufunes Area
Einar Th. Thorsteinsson
The Gufunes Area

Photos & Text : Páll Stefánsson

Reykjavík 15/07/2025 – A7C R, RX1R II : FE 2.8/100mm GM, 2.0/35mm Z