Relocation of businesses at Höfði in Reykjavík sets stage for new residential developments

Significant changes are forthcoming at Höfði in Reykjavík, as long-established businesses prepare for relocation to make way for new residential developments. A substantial portion of the industrial area is expected to give way to housing aimed at accommodating around 20,000 residents, with plans for up to 8,000 new apartments already underway.

Business owners estimate that the costs associated with these relocations could reach hundreds of millions, even billions, of Icelandic krónur. The development at Ártúnshöfða and in Elliðaárvogur necessitates that many established companies move, a process that will drastically alter the local landscape over the next two decades.

Valdimar Þorsteinsson, a project manager from a local metal workshop that has been situated at Malarhöfða since 1993, expressed both optimism and uncertainty regarding the future of their business. While hoping to remain at their current location as long as possible, he acknowledges that the area will likely be transformed within 20 years, with limited relocation options currently available.

Elísabet Ólöf Allwood, the CFO of a concrete plant facing relocation by 2030, noted that the move would impact both operational costs and the carbon footprint, which contradicts the company’s sustainability goals. The city is also looking to shift some services, such as the asphalt plant, to Hafnarfjörður, where portions of the operation have already been transferred.

Overall, the relocations represent a significant undertaking, both logistically and financially, for the businesses involved, with estimates indicating costs in the billions, underscoring the transformational impact on Reykjavík’s industrial zones.