Iceland is one of the most captivating countries I’ve ever visited, and its vibrant capital, Reykjavik - home to over half the nation’s population - punches far above its weight. Looking back, it feels almost embarrassing that I originally planned to spend just a few hours in Reykjavik. By sheer luck, my daughter and I finished our epic Laugavegur hike a few days early, which gave us two full days in the city instead. And I didn’t regret a single minute. In this article, I’ll share nine things that surprised and fascinated me about this beautiful, underrated, very European city.
1. Social Fabric and Identity.
Despite spending six centuries under Danish rule, Icelanders managed to preserve a distinct cultural identity. It’s shaped not by foreign influence, but by the island’s rugged isolation and unforgiving climate. Things are changing fast: about 8.5% of the population of Reykjavik is foreigners, with Poles being the largest community, followed by Danish and Lithuanians. While English is widely spoken, learning Icelandic is still very much necessary to feel a part of the local community. Given that there are fewer than 400,000 people who speak Icelandic, the country is very serious about protecting its language.
Speaking of Icelandic. This language belongs to the Norse branch of the Germanic language family and has remained remarkably unchanged since Viking times. Unlike Danish, Norwegian, and Swedish - which were heavily influenced by other European languages - Icelandic has preserved its original structure and vocabulary so well that modern speakers can still read 13th-century sagas with no problem.
What attracts foreigners to Reykjavik and keeps locals from emigrating to other countries? Well, many things. One of the main reasons is generous social benefits. People enjoy universal healthcare, excellent education, and a decent parental leave. But the idea of social support isn’t new: for centuries, Icelanders formed local communes that offered help to the poor in the form of repayable loans, jobs, and shelter. But until debts were paid off, people faced social pressure to the point of humiliation. For example, they were not allowed to marry.
But living in Reykjavik comes with a hefty price tag, especially when it comes to housing, groceries, and transportation. One litre of gas costs about 3.15 Kronos, which is equivalent to 3 USD. For comparison, you can fill a gallon (3.78 L) of gas in most of the US for this price. As an isolated island with a harsh climate, Iceland relies heavily on imports, which drives up the cost of most goods and services.
Thanks to its historically strong communities and a relatively small size, Reykjavik ranks among the safest cities in the world, with a very low crime rate. The city also has a well-developed urban infrastructure with frequent buses and an extensive network of bike lanes. However, due to the persistent winds and chilly weather, most locals prefer to ride electric scooters, not bikes. And unlike much of Europe, where public transit dominates, a significant number of Reykjavik residents drive cars.
Reykjavik, like the rest of Iceland, is known for its clean environment. Nearly all drinking water comes directly from natural springs. It’s so pure that it doesn’t require chemical treatment. It’s common practice for both locals and visitors to refill their bottles straight from streams.
While it might not always be obvious at first glance, most Reykjavik residents (ReykvÃkingar) are incredibly kind and helpful. A local who immigrated from one of the Baltic states two decades ago once told me that Icelanders are deeply trusting by nature, sometimes to the point of seeming almost naïve.
2. Bread.
Bread holds a special place in Icelandic culture. The island’s long, harsh winters, relentless winds, and frequent rain made grain growth nearly impossible. As a result, bread became a rare and treasured commodity, deeply sought after in the country’s culinary traditions.
A popular story goes that Icelandic farmers from centuries ago were said to offer their daughters' company to strangers in return for a simple loaf of bread. Times have certainly changed: nowadays, grabbing fresh bread is as easy as finding a local swimming pool in Reykjavik.
Icelandic bakeries are famous far from home, thanks to the fact that they often use the earth’s geothermal energy and rely on traditional stovetop methods to bake bread.
Rúgbrauð, Iceland’s take on Nordic rye bread, is more dessert than loaf. It’s baked slowly - sometimes for up to 24 hours - which gently caramelizes the sugars in the sour milk, resulting in a dense, sweet bread that’s similar to sticky date cake. Another local favourite is kleinur: a twisted, doughnut-like pastry that’s inexpensive and widely available in grocery stores and gas stations. I gave it a try once, and let’s just say, it wasn’t for me.
The rise of Reykjavik’s thriving bakery scene is a relatively recent phenomenon, heavily influenced by Danish traditions. One standout is Brauð & Co., a beloved local bakery that opened its doors in 2016. What began with simple cinnamon buns has since grown into artisanal pastries, fresh sandwiches, and hearty daily soups. My absolute favourite was the Happy Marriage Cake, a rustic oatmeal crumble with a juicy rhubarb filling. It tastes just as charming as its name suggests!
3. Icelandic Horses.
Icelandic horses are a remarkable breed known for their distinctive gaits: most notably the smooth, four-beat tölt and the fast, two-beat flying pace, where both legs on one side move in unison. Beyond their unique movement, they’re visually stunning, with over 40 recognized colours and more than 100 variations.
Icelandic horses were brought to the island by Viking settlers over 1,000 years ago. Thanks to centuries of strict import regulations, Icelandic horses have remained genetically pure, preserving traits that make them perfectly suited to the island’s harsh climate. Their thick, double-layered coats protect them from fierce winds and snowstorms, and their longevity is impressive: many live well into their 30s.
Their role in Icelandic history and folklore is deeply rooted: they appear in sagas, poems, and even modern literature.
My daughter took a guided horse tour in Reykjavik, and it was absolutely delightful. When the horses returned to the farm, several of them lay down and rocked gently on the ground, just like playful children. It was a heartwarming sight!
4. Bold Architecture.
One of the most distinctive features of Reykjavik’s cityscape is its charming houses clad in corrugated steel. It’s a practical and surprisingly beautiful solution to Iceland’s harsh climate.
This building method dates back to the late 19th century, when timber was scarce and expensive, and corrugated iron sheets imported from Europe offered a lightweight, durable, and weather-resistant alternative. Over time, these metal-clad homes became a defining element of Icelandic architecture.
But what truly brings them to life is their vibrant palette of colours: homes painted in bright reds, blues, yellows, pink, green - the list goes on and on.
In contrast, much of the mid to late 20th-century architecture reflects a more austere aesthetic and is dominated by grey concrete and minimalist forms. This influence came from the modernist trends and post-war pragmatism, where buildings prioritized function over visual appearance.
I know this trend was worldwide, however, I’m not sure if it was such a good idea after all in a country where winters are long, dark, and often grey. I would much rather prefer these old, metal-clad buildings that burst in colours and truly help lift spirits and combat seasonal depression.
In recent years, modern architecture in Reykjavik has embraced a bold blend of innovation, sustainability, and deep respect for the natural landscape. A new wave of architects is reimagining urban space with a distinctly Icelandic twist.
Contemporary buildings often feature clean lines, minimalist forms, and natural materials like basalt, glacial clay, lava rock, reclaimed wood, and even algae! Reykjavik is truly emerging as a hub for Nordic neo-modernism and eco-conscious creativity.
Continue reading - Part 2.
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