Reykjavik, the northern-most capital city in the world, is an adorable and charming place to make your home base on your trip to Iceland. Reykjavik downtown is about 45 minutes from the international airport (KEF) and about a 2-3 hour drive from many of the natural wonders, like geysers, waterfalls and hot springs. Reykavik is a relatively small town with a population of about 125,000 people.

The best neighborhood to stay in is the 101. This is the central downtown district. As long as the weather is not too bad everything is walk-able. Take a stroll down Laugavegur and you will see many restaurants and shops. The town is used to tourists and almost all of the activities you sign up for will pick you up from a bus stop near your accommodations in central Reykjavik.

There are many apartments available along the water. You will have great views of the mountains and water as well as being a couple of blocks from the main road.

See the map below for the best areas to stay.