Grjótaþorpið Reykjavík is the city’s oldest neighbourhood and one of its most overlooked. This quiet cluster of narrow streets and colourful timber houses has roots stretching all the way back to Iceland’s settlement era. In the 18th century, it became the centre of Reykjavík’s first major urban and industrial development, tied to Skúli Magnússon’s Innréttingar—a bold attempt to modernise the local economy. Today, it’s a peaceful, walkable part of town full of character, history, and stories worth hearing.
If you’re looking for meaningful things to do in Reykjavík city centre, here’s why Grjótaþorpið Reykjavík deserves a spot on your list:
🏡 It’s the oldest part of Reykjavík, inhabited since the Settlement Age.
⚙️ It was central to Iceland’s first industrial movement, through the wool workshops of the Innréttingar.
🧶 The area was home to bishops, workers, artists, and reformers, offering a rich social history.
🏚️ Many historic timber houses have been preserved, showcasing 18th- and 19th-century urban life.
🚶♀️ It’s a great stop for a walking tour, and it is easily connected to Aðalstræti 10, Hallveigarstaðir, and the Settlement Exhibition.
📍 Plan Your Visit to Grjótaþorpið
Whether you’re spending a full day in Reykjavík or just wandering the city centre for an afternoon, Grjótaþorpið Reykjavík is easy to explore on foot and full of hidden gems. Take your time, look up at the colourful rooftops, and imagine the stories these streets could tell.
Keep reading to discover the people, places, and history that bring this neighbourhood to life—or better yet, add it to your walking route next time you’re in Reykjavík.
If you’d like a guided tour where you’ll visit a couple of spots here, we recommend the Reykjavik Folklore Tour and the Private Icelandic Women Walking Tour.
Early Days of Grjótaþorpið Reykjavík
Long before Reykjavík became a capital city with coffee shops and culture houses, it was a small coastal settlement—windy, rocky, and practical. The area now known as Grjótaþorpið Reykjavík is the oldest part of the city, with roots tracing all the way back to the first settlers of Iceland. Archaeological digs suggest that one of the earliest landnámsbæir (settlement farms) stood near the southern end of Aðalstræti, right where Grjótaþorpið now sits.
By the 18th century, this rocky corner of town—named Grjóti after its stony terrain—was home to a tenant farm and a single household, according to the 1703 Jarðabók by Árni Magnússon. It was poor, tough land, but things began to shift dramatically with the founding of Innréttingarnar in 1752. These wool workshops, established by Skúli Magnússon, marked the beginning of Reykjavík as a working town. Small plots were allocated to tradesmen and labourers, and houses sprang up along the hillside north of Grjóti.
As the neighbourhood grew, so did the need for order and oversight. That’s where the watchmen (næturverðir) came in. Before streetlights and police stations, these men patrolled the unpaved streets of Reykjavík, watching for fires, thieves, and troublemakers. One lived in Garðastræti 23, now known as Vaktarabærinn—the Watchman’s House. It still stands today and remains one of the oldest timber houses in Reykjavík.
Famous People and Stories from Grjótaþorpið
Grjótaþorpið may be a small area, but it’s been home to some of the most fascinating figures in Iceland’s cultural and social history. From artists and poets to activists and everyday legends, the stories from these narrow streets tell us as much about Reykjavík as any statue or museum.
Unuhús – A Home for Outsiders and Artists
At Garðastræti 15 stands Unuhús, once the home of Una Gísladóttir, a woman known for opening her door to anyone who needed food, warmth, or a place to stay. Her house became an informal cultural hub in the early 20th century, welcoming writers and artists like Halldór Laxness, Steinn Steinarr, Þórbergur Þórðarson, and painters Nína Tryggvadóttir and Louisa Matthíasdóttir. Þórbergur even wrote a book titled Í Unuhúsi, inspired by the spirit of the place and the people in it.
Una ran her home with quiet generosity, offering cheap meals and shelter when few others would. Her legacy is one of care and quiet defiance against poverty and exclusion. Her son, Erlendur, also lived there and carried on her spirit of openness.
Laufey Jakobsdóttir – The Grandmother of Grjótaþorpið
From 1976 to 1995, Laufey Jakobsdóttir lived at Grjótagata 12, where she became known as amma Grjótaþorpsins—“the grandmother of Grjótaþorpið.” A feminist, activist, and advocate for the vulnerable, Laufey was involved in everything from elder care and animal rights to urban preservation.
She worked with troubled youth, helped open a public toilet in the neighbourhood so kids had a safe place to go, and volunteered there herself late into the night—unpaid. She wrote poetry, gave interviews, and fought passionately for dignity and justice for those often overlooked. Laufey was awarded the Knight’s Cross of the Order of the Falcon in 1996 for her contributions to Icelandic society.
The song Krókódílamaðurinn, by Icelandic musician Megas, is about Laufey and how she helped kids, mostly young girls.
Ásta Sigurðardóttir – Reykjavík’s Boldest Voice
Few writers shook Reykjavík like Ásta Sigurðardóttir. A poet, visual artist, and short story writer, Ásta lived in and around Grjótaþorpið during the 1950s and early ‘60s, when she was at the height of her creative and controversial powers.
Her breakthrough story “Sunnudagskvöld til mánudagsmorguns” portrayed addiction, gender violence, and poverty in brutally honest terms. She was outspoken, flamboyant, and refused to play the part society expected of her. Ásta’s presence—walking the city in bright clothes, smoking, drinking, defying norms—was as striking as her prose.
Her stories tackled taboo subjects with raw emotion and empathy. She wrote about those living on the edges of Reykjavík—people she knew well because she was one of them. Though she died young, her legacy continues as a powerful voice for Iceland’s outsiders and misfits.
Things to Do in Reykjavík City Centre: A Walk Through Grjótaþorpið
Start at Aðalstræti 10 – Reykjavík’s Oldest House
Begin your walk at Aðalstræti 10, a timber building from 1762 and the oldest surviving house in downtown Reykjavík. It was originally part of Skúli Magnússon’s Innréttingar, Iceland’s first industrial project, aimed at boosting local wool production and reducing reliance on Danish trade.
Over the years, it housed bishops, prominent families (including Jón Sigurðsson’s brother), a convenience store, and later bars and restaurants. Today, it’s part of the Reykjavík City Museum and hosts engaging exhibitions about how the city grew from a small cluster of farms into the capital of a republic.
💡 Entry is free with the Reykjavík City Card, and it’s a great place to begin if you want context before walking the neighbourhood.
Next Door: The Settlement Exhibition at Aðalstræti 16
Just across a small courtyard is the Settlement Exhibition—built around the actual remains of a 10th-century Viking longhouse discovered during construction. You’ll walk alongside the preserved structure while learning about daily life in the earliest days of Icelandic settlement.
There are interactive displays, runic writing stations, and a recreated model of Reykjavík as it may have looked in the year 871±2. It’s one of the best indoor experiences in the city and perfect for getting into the mindset of old Reykjavík before heading back into the streets.
Hallveigarstaðir – Women’s History Lives Here
At the corner of Garðastræti and Túngata stands Hallveigarstaðir, also known as “The Women’s House.” It took nearly 50 years to fund and build and is still owned by Iceland’s major women’s organisations.
Named after Hallveig Fróðadóttir, said to be the first female settler in Reykjavík, the building was opened on 19 June 1967—Women’s Rights Day. It was intended to be a centre for education, community housing, and women’s cultural life. While it now hosts a mix of organisations (including two embassies), it remains a powerful symbol of collective action and gender equality.
💡 The building isn’t always open to the public, but it’s worth pausing to reflect on its story—or reading the plaque out front.
Garðastræti 23 – Vaktarabærinn (The Watchman’s House)
From Hallveigarstaðir, cross Garðastræti and pause at number 23. This small timber house is called Vaktarabærinn, or “The Watchman’s House.” In the 19th century, Reykjavík had no police force, so night watchmen (næturverðir) patrolled the streets with lanterns to keep an eye out for fires and trouble.
One of those men lived in this house, making it a rare surviving piece of working-class urban history. It’s now protected and preserved as a cultural heritage site.
📍 You can’t go inside, but it’s worth a stop and a photo—especially as part of imagining what the city felt like before electricity and streetlights.
Unuhús – A House of Stories
On Garðastræti at number 15 stands Unuhús, a modest home that quietly shaped Reykjavík’s cultural life in the early 20th century. It was the home of Una Gísladóttir, known for her kindness and generosity toward artists, writers, and outsiders. Regular visitors included Steinn Steinarr, Þórbergur Þórðarson, and a young Halldór Laxness.
Una offered meals and a roof to those with little else, creating a welcoming space where creativity and conversation could thrive. After she died in 1924, her son Erlendur Guðmundsson carried on her legacy. Though more reserved than his mother, Erlendur kept Unuhús open as a haven for the city’s intellectuals and misfits, quietly maintaining its reputation as a rare place of warmth, independence, and cultural exchange.
Although the house isn’t open to the public, it’s a meaningful stop for anyone interested in Icelandic literature or grassroots community history.
Vesturgata 3 – From Cultural Landmark to Culinary Delight
As you continue your walk down Vesturgata, you’ll come across number 3—a building steeped in Reykjavík’s cultural history. This was once the site of Hlaðvarpinn, a feminist-led arts venue established in 1985 by a group of women dedicated to preserving the area’s historic architecture and repurposing it for artistic endeavours. Hlaðvarpinn served as a hub for exhibitions, performances, and community gatherings for years, contributing significantly to the city’s cultural landscape.
While Hlaðvarpinn has since closed, the building continues to be a vibrant part of the neighbourhood. Today, it houses Tapas Barinn, a popular restaurant offering a unique blend of Icelandic ingredients with Spanish-inspired tapas, creating a distinctive dining experience. Adjacent to it is Café Rosenberg, a cozy café known for its warm atmosphere, delicious soups, sandwiches, and pies, making it a perfect spot to relax during your exploration of Grjótaþorpið.
Though the artistic performances have moved on, the spirit of community and culture remains alive at Vesturgata 3, now through the shared experiences of food and conversation.
Gröndalshús – The Eccentric Cat-Loving Scholar
Tucked just off Fischersund, this small red timber house once belonged to Benedikt Gröndal (1826–1907)—writer, translator, illustrator, and naturalist. He lived here for the last 20 years of his life, though the house originally stood on Vesturgata and was moved when the area was redeveloped.
Gröndal was known for his wit and wide-ranging curiosity. He translated The Iliad and The Odyssey from Greek to Icelandic, co-founded the Icelandic Natural History Society, and published books on Icelandic wildlife—many of his drawings still appear on posters sold today.
He was also a storyteller with a reputation for mischief. One tale claims he once tried to sell the Northern Lights to a foreign investor—a fitting rumour for someone who thrived on the border between fact and flair.
Gröndalshús is occasionally open for literary events, but even when closed, it’s worth a look—a quiet tribute to one of Reykjavík’s most unusual and creative minds.
📍 Keep an eye out for signage about upcoming events. If you’re lucky, you might catch a poetry reading, workshop, or small exhibit inside.
Vinaminni – The Legacy of Sigríður Einarsdóttir
At Mjóstræti 3 stands Vinaminni, a distinctive timber house built in 1885 by Sigríður Einarsdóttir, actress, educator, and one of Iceland’s early advocates for women’s rights. She was born in 1831 and grew up in Brekkubær, a house that once stood on this same site in Grjótaþorpið. In 1857, she married Eiríkur Magnússon, later librarian at Cambridge University. The couple lived in London from 1862.
Before leaving Iceland, Sigríður acted in Reykjavík’s earliest theatrical productions, including the 1854 play Pakk with Benedikt Gröndal, where she was listed in the programme as Sigga Tipp. She also taught guitar in the city.
In 1884, a friend gifted her £200, which she used to build Vinaminni on the site of her childhood home. In 1891, she founded a short-lived women’s school there, which operated for one winter and hosted 15 students—five of whom lived in the house. Beyond education, Sigríður was active in charity work, crafts exhibitions, and commerce, selling Icelandic goods and giving lectures abroad on Iceland and the hardships faced by Icelandic women.
She was not without controversy—at a Chicago exhibition, she labelled two silver chains as having belonged to Jón Arason and Snorri Sturluson, a bold claim that drew criticism back home.
Sigríður died in Denmark in 1915 and is buried in Søllerød on the island of Zealand. Though the school closed long ago, Vinaminni still stands as a testament to her independence, vision, and place in Reykjavík’s evolving history.
The Elf Stone – Respecting the Hidden Folk
Near the playground just before your final stop at Grjótagata 12, you’ll find a mossy boulder nestled beside the path. Locals know it as an álfasteinn—an elf stone, believed to be home to Iceland’s hidden people, the huldufólk.
According to legend, this stone once stood in eastern Reykjavík, blocking the construction of a new building after World War II. Despite warnings from neighbours about its connection to elves, workers tried to move it, but their machinery repeatedly failed.
Eventually, someone who could “communicate” with the elves was called in. He returned with a message: the elves would agree to be relocated, but only if two conditions were met:
- They needed one week to gather their belongings
- The stone must be moved to a respectful location in central Reykjavík
The crew waited a week, then moved the stone without incident. It’s stood here in Grjótaþorpið ever since. Look closely and you might still spot the marks left by the original moving attempt.
Grjótagata 12 – The Grandmother of Grjótaþorpið
This quiet house on Grjótagata 12 was home to Laufey Jakobsdóttir from 1976 to 1995. Known as amma Grjótaþorpsins—“the grandmother of Grjótaþorpið”—Laufey became a beloved figure in the neighbourhood for her tireless social work and activism.
Born in 1915 in Borgarfjörður, East Iceland, Laufey and her husband, Magnús B. Finnbogason—a builder, writer, and inventor—raised eight children and left a large extended family behind. But Laufey’s work outside the home made her a legend in the city centre. She was one of the founding members of the feminist Women’s Alliance, an advocate for the elderly and animals, and an active voice in preserving Reykjavík’s historic buildings, serving at one point as chair of Torfusamtökin, the city’s architectural conservation group.
She wrote prolifically for newspapers and magazines and published many poems. In 1992, she published a book of interviews, Lífsbók Laufeyjar (The Book of Laufey’s Life). Laufey championed the rights of the disempowered and was particularly known for her support of young people in the city centre.
One of her most memorable contributions was opening a small public toilet in Grjótaþorpið. She staffed it herself—unpaid and often late into the night—so local youths would have a safe place to go. In 1996, she was awarded the Knight’s Cross of the Icelandic Order of the Falcon for her lifetime of community work. Laufey passed away on 6 March 2004, but her impact is still felt throughout the neighbourhood.
Slow Down and Look Around
Part of what makes Grjótaþorpið Reykjavík special is what hasn’t changed. Look for the narrow streets, crooked pavements, painted wood siding, and stone foundations. In summer, flowers spill from window boxes; in winter, the snow settles softly on the rooftops.
You’re walking through one of the few parts of Reykjavík where you can still feel the rhythm of the past—tucked right in the middle of the modern city.
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