🎒Backpackers

Where to Stay in Reykjavík

Cheapest areas, hostel districts, and budget tips

🛡️ Very Safe💰 Budget: ISK 15000/day🚶 Very Walkable☀️ Best: Jun, Jul, Aug

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Quick Answer

Stay in Miðborg (City Center)

Kex Hostel provides a social atmosphere and affordable lodging, with central access to amenities.

See full Reykjavík neighbourhood guide

Top 3 Areas to Stay in Reykjavík

Most affordable areas with the best value accommodation

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Vesturbær

A charming, more residential area offering a quieter, local feel with good amenities.

Our top picks in Vesturbær

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Fosshotel Reykjavik$$

A large, modern hotel offering comfortable rooms and good city views from its higher floors.

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Hotel Grimsborgir$$$

Luxury hotel located slightly outside the immediate center, offering spacious suites and a focus on relaxation.

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Reykjavik Residence Apartment Hotel$$

Offers a range of stylish apartment-style accommodations, providing more space and self-catering options.

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🛡️ Extremely safe day and night; ...Mid-rangefamiliescouples

View Hotels in Vesturbær

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Miðborg (City Center)

The vibrant heart of Reykjavík, packed with colorful buildings, shops, restaurants, and nightlife.

Our top picks in Miðborg (City Center)

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Hotel Borg by Keahotels$$$

An iconic, art deco landmark hotel offering classic elegance and prime city center location.

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Canopy by Hilton Reykjavik City Centre$$$

Stylish hotel with a focus on local design, offering complimentary tastings and a central, lively atmosphere.

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Kex Hostel$

A popular social hub with dorms and private rooms, known for its gastropub and lively common areas.

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🛡️ Very safe during the day; gene...Luxuryfirst-timersnightlife

View Hotels in Miðborg (City Center)

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Grandagarður / Old Harbour

A revitalized harbor area buzzing with whale watching tours, maritime museums, and trendy eateries.

Our top picks in Grandagarður / Old Harbour

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Hotel Reykjavik Centrum$$

Located in a historic building near the harbor, offering a blend of old-world charm and modern comfort.

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Sandhotel$$$

Chic boutique hotel with elegant rooms and a renowned bakery on the ground floor.

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Center Hotels Arnarhvoll$$

Modern hotel with great harbor views and a popular rooftop bar.

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🛡️ Very safe day and night; well-...Luxuryfirst-timersfoodies

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Neighbourhood Comparison for Backpackers

Neighbourhood	Budget	Vibe	Best For
#1Miðborg (City Center)	Luxury	The vibrant heart of Reykjavík, packed with colorful buildings, shops, restaurants, and nightlife.	first-timersnightlife
Vesturbær	Mid-range	A charming, more residential area offering a quieter, local feel with good amenities.	familiescouples
Grandagarður / Old Harbour	Luxury	A revitalized harbor area buzzing with whale watching tours, maritime museums, and trendy eateries.	first-timersfoodies

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Find budget-friendly hostels in Reykjavík

Affordable stays in the best backpacker areas

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Tips for Backpackers in Reykjavík

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Book Hostels with Kitchens

Self-catering saves significant money in Reykjavík. A hostel with a good kitchen can cut your food budget by half.

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Walk Where Possible

Many city centres are walkable. Save transport money for longer journeys and use your feet for neighbourhood exploring.

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Find Free Activities

Free walking tours, museum free days, parks, and markets are everywhere. Ask hostel staff for the best free experiences.

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Carry a Water Bottle

A refillable bottle saves money and plastic. Many cities have free water fountains; check the local tap water safety first.

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Find free walking tours in Reykjavík

Budget-friendly ways to explore

Browse on GetYourGuide

Best Neighborhoods for Backpackers

Ranked by relevance for backpackers visiting Reykjavík

Miðborg (City Center)

Luxury

The vibrant heart of Reykjavík, packed with colorful buildings, shops, restaurants, and nightlife.

first-timersnightlifefoodiesculture

+Most attractions are within walking distance.
+Abundant dining and entertainment options.
+Excellent public transport connections.

-Can be very crowded, especially in summer.
-Accommodation can be expensive.

🏨 Hotel Borg by Keahotels 🏨 Canopy by Hilton Reykjavik City Centre 🏨 Kex Hostel

Vesturbær

Mid-range

A charming, more residential area offering a quieter, local feel with good amenities.

familiescouplesculturedigital nomads

+More affordable than the absolute center.
+Quieter and more relaxed atmosphere.
+Good access to local swimming pools and parks.

-Slightly further from the main nightlife.
-Fewer dining options compared to the city center.

🏨 Fosshotel Reykjavik 🏨 Hotel Grimsborgir 🏨 Reykjavik Residence Apartment Hotel

Grandagarður / Old Harbour

Luxury

A revitalized harbor area buzzing with whale watching tours, maritime museums, and trendy eateries.

first-timersfoodiesculturefamilies

+Gateway to popular boat tours.
+Excellent seafood restaurants.
+Interesting maritime history and museums.

-Can be tourist-focused and busy.
-Limited nightlife options.

🏨 Hotel Reykjavik Centrum 🏨 Sandhotel 🏨 Center Hotels Arnarhvoll

Daily Budget (Budget)

ISK 15000/day

KEX Hostel shared dormISK 6000

Bæjarins Beztu Pylsur hot dog and a pastry from Brauð & CoISK 2500

Walking and local bus for short distances (single ticket)ISK 1500

Explore Tjörnin pond, Hallgrímskirkja church (exterior and tower view), walk Laugavegur street, visit the Settlement ExhibitionISK 5000

See all budget tiers

Hidden Gems in Reykjavík

Lesser-known spots the locals love

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Reykjavik Laundromat Cafe

This quirky cafe doubles as a laundromat, offering a relaxed atmosphere with excellent coffee, breakfast, and lunch options. It's a popular local hangout with a fun, eclectic vibe and a dedicated kids' play area.

foodMiðborg (Downtown)

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Bæjarins Beztu Pylsur

Often cited as the best hot dog stand in Reykjavik, this spot is a must-try for locals and adventurous travelers. Order 'one with everything' for a taste of their unique lamb hot dog with crispy onions and sweet mustard.

foodMiðborg (Downtown)

Our Top 5 Favourite Tours in Reykjavík

Hand-picked guided experiences you can book in advance on GetYourGuide.

Guided walking tour through a European city

Reykjavík Walking Tour: Highlights & Hidden Gems

Discover Reykjavík on foot with a local guide who knows every backstreet and story. You will cover the must-see landmarks and stumble upon places most visitors never find.

View Tour Details

Reykjavík Food Tour: Street Food & Local Favourites

Eat your way through Reykjavík with a local foodie as your guide. From bustling markets to tucked-away restaurants, taste the dishes the city is truly known for.

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Best of Reykjavík: Skip-the-Line Top Attractions

Skip the queues and get straight into Reykjavík's top attractions with pre-booked access. An expert guide brings each site to life with stories and context you would not get on your own.

View Tour Details

Day Trip from Reykjavík: Scenic Excursion

Escape Reykjavík for the day and explore the stunning surroundings. Transport, guide, and itinerary are all sorted so you can relax and enjoy the scenery.

View Tour Details

Local cultural experience and traditions

Reykjavík Cultural Experience: History & Traditions

Go beyond sightseeing and connect with Reykjavík's living culture. From hands-on workshops to historic neighbourhood walks, this is the side of the city most travellers miss.

View Tour Details

View all tours in Reykjavík

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1 area to be cautious about

Read our full safety guide for Reykjavík

Backpackers in Reykjavík: FAQ

What is the best area in Reykjavík for backpackers?

Miðborg (City Center) is our top pick for backpackers in Reykjavík. The vibrant heart of Reykjavík, packed with colorful buildings, shops, restaurants, and nightlife. It is a premium area known for first-timers, nightlife, foodies.

Is Reykjavík safe for backpackers?

Reykjavík is rated "very safe" overall. The city center is generally safe at night, though it can get lively with pub-goers. Stick to well-lit streets and main areas. Taxis are readily available. Our neighbourhood guides include area-specific safety advice.

How much does it cost per day in Reykjavík for backpackers?

Expect to spend around ISK 15000 per day in Reykjavík as a backpacker. This covers accommodation, food, transport, and activities at the budget level.

When is the best time for backpackers to visit Reykjavík?

The ideal time depends on your priorities. Shoulder seasons (spring and autumn) typically offer the best balance of pleasant weather, lower prices, and fewer crowds. Budget travellers often find the best deals in winter or early spring.

Where are the cheapest hostels in Reykjavík?

The most affordable hostels in Reykjavík are typically found in Miðborg (City Center). Budget accommodation options are highlighted in each neighbourhood breakdown above.

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More Reykjavík Guides

Full Reykjavík guide Areas to avoid Best time to visit More cities in Iceland 👩 Solo Female Travellers 💑 Couples 👨‍👩‍👧‍👦 Families 💻 Digital Nomads ✨ Luxury Travellers 🎉 Nightlife Seekers

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