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Where to stay in Hafnarfjordur: the lava-town alternative

Ten kilometres south of Reykjavik, Hafnarfjordur has an actual old town, a working harbour, and rooms that run about 20% under 101 prices.

Published2026-01-19

Who Hafnarfjordur suits

Hafnarfjordur suits travellers who want a small-town feel without giving up proximity to the capital. The centre around Straendgata has wooden 19th-century houses built on and around a lava field, a harbour with fishing boats, and enough restaurants (Sudur-Vik, Fjorubordid, Von Mathus) to fill three evenings. It is the closest 'proper' Icelandic town to Keflavik airport, 35 minutes by car, and sits on the road to the Blue Lagoon and Reykjanes peninsula.

Skip it if you want nightlife (bars close by 1am midweek), if you are relying on buses (route 1 into Reykjavik takes about 30 minutes), or if you specifically want to sleep near Laugavegur. Families and older travellers tend to like it more than 25-year-olds on a long weekend.

Cost and what's walkable

Mid-range doubles run 17,000-27,000 ISK. Viking Hotel is the town's characterful option, kitschy but well-located. Guesthouses along Reykjavikurvegur are cheaper and quieter.

From the harbour you can walk to Hellisgerdi park (Iceland's oldest public park, supposedly home to elves), the Hafnarfjordur Museum, Astjorn nature reserve (25 min), and Suderbakki's small beach. Krysuvik geothermal area is a 25-minute drive; the Blue Lagoon 30 minutes; central Reykjavik 15 minutes off-peak.

Good to know

Questions, answered

Is Hafnarfjordur good for northern lights?

Better than downtown Reykjavik because the western edge of town faces open sea, but still light-polluted. Drive 15 minutes south to Krysuvik for real darkness.

Can I stay here and skip Reykjavik entirely?

You can, and some do, but you will still drive into 101 for the best restaurants and museums. Better as a base if you are doing Reykjanes and South Coast trips.

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