Hlíðar

Hlíðar is hillside residential area with budget accommodation and good views but lots of uphill walking. Safe and local, limited amenities so you'll commute downtown. Best for fit people on a budget.

Hlíðar is on the hillside overlooking downtown with views of the city, harbor, and Mount Esja. It's residential and climbs up from the city center - be prepared for hills. Accommodation is cheaper than downtown and it's still walking distance to attractions. Small guesthouses and apartments, not hostels or hotels. The trade-off is walking uphill home after sightseeing gets tiring. In winter the hills are icy and slippery. Safe like everywhere in Reykjavík - strollers left outside cafes, bikes unlocked. Mostly Icelandic families, fewer tourists, limited restaurants or nightlife. English is less common than downtown but people are helpful. The appeal is saving money and seeing how locals live, but you'll walk a lot (uphill) and commute downtown for food and activities. Best for fit people on a budget who don't mind hills.