Reykjavík Mayor Dagur B. Eggertsson calls the construction planned in the capital in coming years “without precedent.” He told RÚV that there will be a diverse supply of apartments, and nearly a quarter of apartments in new areas will be rented out or reserved for co-operative apartments.
The city council has been criticized for a lack of supply of lots within the city limits. A strong emphasis has been placed on promoting a relatively high residential density, making the city more compact. Part of that project is a new development in the Vogabyggð neighborhood. That will create the largest compact neighborhood in the history of the city.
Dagur was asked if the Vogabyggð build-up would quiet voices critical of the lack of lots. He replied, “Not the Vogabyggð alone, but of course we’re building on many lots, and there has never been as much spent on construction in Reykjavík during any three-year period, as there has been in the past two years and the year ahead. But the need is there.”
Dagur stressed the importance of diversity in the supply of apartments. Right now, there are 52,000 apartments in Reykjavík. In order to ensure that rental and co-operative apartments be spread out, a certain proportion of new apartments will be reserved for that purpose.
“That’s part of the deal. In fact, it’s required, even though private parties own a lot or construction area, between 20 and 25 percent of the apartments must go on the rental or co-operative market,” Dagur explained.