Gentrification in Downtown Reykjavík

Translation: Jóhannes Bjarki Bjarkason

Grafík/Margrét Aðalheiður

Gentrification has been little discussed in Iceland. Though it’s a complicated concept, gentrification essentially means a demographic change in a neighbourhood. The word’s etymology references the gentry of industrial-era English society and how they gradually embraced the values of the lower classes. This process leads to the upper classes acquiring spaces that previously belonged to the lower classes. Affluent people move into poor neighbourhoods, driving up housing costs. These neighbourhoods become more desirable for wealthier people, and more often than not, poorer individuals are ultimately displaced and forced into other parts of the city. 

Hlemmur and ideas about gentrification

Hlemmur’s history can be examined in the context of gentrification. Hlemmur boasts a rich history as a pitstop for people travelling from further afield into what was then the rapidly expanding Reykjavík metropolitan area. In 1978, the building standing at Hlemmur was built to be the central terminal for the Reykjavík city bus system. As well as serving as a bus terminal, it was also intended to accommodate shops and serve as an indoor market square. In his article on Hlemmur in HA magazine, Bjarki Vigfússon writes that the building’s design had to endure “a series of mistakes.” He mentions, for example, that design plans for the interior changed it from an open, bright, and lush environment to a darker and colder space. Ultimately, most of the building’s shops disappeared. The idea of a market square at Hlemmur went no further. 

As an accessible space in downtown Reykjavík, the house attracted a different audience than originally intended. In the 80s, the building was overrun by punks, as documented in Friðrik Þór Friðriksson’s documentary Rokk í Reykjavík. Alongside the punks, homeless individuals and substance users became frequent guests at Hlemmur.  

Hlemmur market square

Today, it seems that the building's original intended use has finally been realized. The idea of Hlemmur as a market square lives on, as it is now the headquarters of the city’s food hall culture. Hlemmur Food Hall opened its doors in 2017, with other food halls opening subsequently around the city: Grandi Food Hall in 2018 and Höfði Food Hall in 2019.  

Today, with a variety of excellent restaurants, Hlemmur Food Hall is an attractive meeting place for the middle and upper classes. Action has even been taken to prohibit lower-class individuals from entering. Gradually, Hlemmur’s managers have made it less and less accessible to the people who once frequented the place.  

Bearing in mind organizational changes and the building’s original use, it is difficult to look past the purpose it actually served over the years. Hlemmur served as a shelter for individuals who had no other place to go during the day. The transformation of Hlemmur ushered in what is called a cultural shift. The previously mentioned regular guests at Hlemmur were no longer welcome. Their presence there was not taken into account during Hlemmur’s transformation. 

The individuals who previously used the building must now look elsewhere to have their basic needs met. Shelter, access to clean water, and the social connections that Hlemmur provided are no longer accessible to these groups. In spite of the building’s transformation, it cannot be assumed that these same individuals won’t try to gain entrance again, as experience has shown. This creates a certain conflict between what was and what is, along with conflict between the upper and lower classes. In the case of Hlemmur, the site shifted from being a public space, open to all and with no particular purpose, into a commercial space subject to the goals and values of stakeholders. 

The tourist industry as a driver of gentrification

In order to examine gentrification, the tourism industry must be seen as playing an important part. With the influx of tourists, demand for lodging in central Reykjavík increases. This leads many downtown residents to move to other parts of the city and rent their downtown properties to tourists. At the same time, the food service industry increases its capacity to cater to the demand. This development prompted features of gentrification in certain areas, for example at Grandi. 

This massive increase of capital into the economy of central Reykjavík causes a paradigm shift. It is true that the city has become more lively than ever before. At the same time, it is necessary to keep in mind that not everybody enjoys the same level of privilege. Established and marginalised groups do not deserve to be evicted from spaces that play important roles in their lives. Architecture defines which individuals are able to use certain spaces. It also has the power to create human beings inside a particular space, as well as influencing their behaviour, thoughts, and emotions. This power must be harnessed for the sake of the public, as needed.