Keldur will be an exciting, modern urban quarter and the future home to 13,000 residents and 8,000 jobs, focused on eco-friendly transportation and land-use around three transit stations. A total of 5,800 apartments and 150,000 square meters for jobs are to be included in the masterplan for Keldur, a development in a dense human-scale of 3-5 floors with premium urban qualities for residents and visitors.
Keldur development area, at around 115 hectare (284 acres) in size, is large and brimming with opportunities, richly endowed by nature while also presenting interesting challenges. It is a part of a corridor of dense, mixed use urban core that runs from the old city center in Reykjavik to the eastern edge.
Close and connected with a high-quality bus rapid transit system
In developing the Reykjavik capital area, the focus is on sustainability, quality of life and international competitiveness. A high-quality bus rapid transit system called Borgarlína will be a new spine in the public transport system and the backbone of urban development.
Keldur quarter will be serviced by one of the main Borgarlína BRT routes, which will extend from the city center and the main commercial areas of Reykjavik, through Keldur, continuing to the eastern part of the capital area. Travel time with Borgarlína between Keldur and the old city center will be 20 minutes, and the aim is for the Borgarlína service to start simultaneously with the delivery of the first 100 apartments.
Growth and accumulated housing demand
Development of the Keldur Area is a major step in creating a contiguous urban fabric and accommodating future housing and businesses in a fast-growing city where there is a great need for a large-scale push to meet an accumulated housing need.
The Capital Area Transport Pact, a long-term infrastructure investment plan signed by the state and municipalities, has tasked Transport for the Capital Area (TfCA), a public company, with overseeing the development and sale of land at Keldur. All profits from the development and sale of the land will go entirely to funding a portfolio of transport infrastructure projects in the capital area, including the Borgarlina BRT system, in accordance with the Capital Area Transport Pact. Therefore, securing the mutual benefit for all partners.
The road ahead – coordinated process with the City of Reykjavik
The City of Reykjavík and TfCA, the owner of the development area, have been collaborating and preparing the development of Keldur since 2021. An open, international competition to prepare a masterplan for the development of Keldur was held in 2023. Out of around forty submissions in stage 1, five teams were selected to further develop their ideas in stage 2. After careful consideration by an international panel of judges, Swedish architect studio FOJAB and Ramböll engineers, were appointed having submitted a very attractive and compelling proposal for an urban quarter with approximately 13,000 residents and 8,000 workplaces.
The City of Reykjavík and TfCA with the FOJAB team are currently embarking on the next phase of area development based on the winning proposal. A local masterplan and first detail plans for the development will be presented later this year. The objective is to confirm the local master plan and first detail plans for the area in 2026 following which street and utility construction can commence. As outlined in the Reykjavík City Housing Plan for 2024-2033, it is anticipated that the allocation of buildable plots for residential housing and commercial development in Keldur will commence in 2027.
Market engagement
A strong and accumulated demand for housing in Reykjavik is evident, which TfCA believes should make this large-scale project highly attractive to both Icelandic and International investors/developers. TfCA is currently finalising its strategy to formally launch Keldur on the international stage and it will be engaging the market on its plans to bring this project to life. That engagement will allow TfCA to test interest in Keldur from investors, developers and other key partners, as well as secure feedback on the range of project delivery approaches currently being considered. This will allow TfCA to refine its strategy and formally approach the market with confidence and in the knowledge that experienced, committed organisations are engaged and interested in this very important project for the Reykjavik Capital Area.
Having completed this informal engagement, TfCA will then move into a more formal stage of individual project delivery. This will likely be progressed through specific requests for formal proposals for individual development opportunities on building plots of various sizes and scales. Such opportunities will be advertised widely through the Official Journal of the European Union (OJEU) and more generally and it is currently expected that in 2026, as the first construction phase of Keldur progresses, TfCA will start to seek proposals from teams of investors, designers and construction companies.
Contact us
betrisamgongur@betrisamgongur.is
Presentation at MIPIM 2024 – PDF