Burnt Ruins Gone – Reconstruction to Begin

Rebuilding on Hvaleyrarbraut

Demolition of the fire-damaged buildings at Hvaleyrarbraut 22 has begun. The construction company Dverghamar has big plans for the site. “The location is fantastic – close to the golf course and with a view over the sea,” says Karl Raymond Birgisson, managing director of Dverghamar, the company that purchased the lot from its previous owners and reached an agreement with the Town of Hafnarfjörður on its redevelopment. “It’s time to begin building up the area.”

The plan is to construct an apartment building with up to 58 residential units, along with space for retail and service operations. Dverghamar has committed to completing the development within five years. The new building will join other residential projects in the area, contributing to a positive and attractive urban environment.

Demolition of the fire-damaged buildings has begun.

Celebrating progress

Mayor Valdimar Víðisson welcomes the start of the redevelopment project. “This marks an important step in developing housing and services in the area, benefiting all residents of Hafnarfjörður. It’s great news that demolition has begun and that the fire-damaged structures will soon be gone,” he says.

As residents know, most of the buildings on the site were destroyed in a fire on 20 August 2023. The agreement with Dverghamar aims to speed up the cleanup and begin construction as soon as possible. Plans call for 5,711 square metres of residential housing, 120 square metres of commercial space, a 2,400-square-metre underground parking garage, and 500 square metres of storage.

Access to parking will be from Lónsbraut. The minimum parking requirements are one space for apartments under 80 square metres, two spaces for apartments larger than 80 square metres, and one space per 50 square metres of commercial space, with the option to build additional parking.

Nearly 40 years of history

Dverghamar has a long history in Hafnarfjörður. “We’ve been building here since 1986 and are excited to continue,” says Karl Raymond Birgisson. “We just completed a project in Hringhamar and have built in Vellir as well. That’s quite a few projects over nearly 40 years.”

Yes, the harbour area of this beautiful town is set to change significantly in the coming years. Hafnarfjörður Municipality is focusing on development in line with the new regional plan for the capital area, aiming to create a mixed neighbourhood of housing and services. Areas near Hafnarfjörður Harbour, traditionally used for industry, are among those to be transformed.