Sky Lagoon Waterfront District
International Competition
Development Plan for the Kársnes Waterfront, Iceland
Submit Expression of InterestAn invitation to world-class architects to shape the future of Reykjavík's gateway
International Competition
Development Plan for the Kársnes Waterfront, Iceland
Submit Expression of InterestAn invitation to world-class architects to shape the future of Reykjavík's gateway
The Competition
On the western tip of Kársnes peninsula, where the North Atlantic meets the Reykjavík metropolitan area, lies one of Iceland's most significant undeveloped waterfront sites.
Adjacent to the internationally acclaimed Sky Lagoon—a destination that has redefined Icelandic wellness tourism—this extraordinary site offers visionary architects the chance to create a new landmark for the 21st century.
Why This Site
The site occupies a dramatic peninsula position with water on three sides, offering exceptional views toward Reykjavík, the Öskjuhlíð woodland, and the iconic Mt. Esja.
Few urban waterfront sites anywhere in the Nordic region offer this combination of proximity to a capital center with such raw natural beauty.
Proven Success
Sky Lagoon has demonstrated the transformative power of thoughtful, place-based design. Since opening, it has become one of Iceland's most visited attractions, drawing visitors who seek authentic experiences that connect them to the Icelandic landscape.
The same vision and commitment to excellence that created Sky Lagoon will guide this larger development.
Design Aspirations
Visitors should know immediately they are in Iceland—or at minimum, somewhere distinctly Nordic. The architecture should draw from Icelandic building traditions, materials, and relationship with landscape while speaking a contemporary language.
The existing Sky Lagoon experience is paramount. All proposals must ensure that the intimate, contemplative atmosphere of the lagoon is preserved and enhanced—not diminished by surrounding development.
The new quarter should reward exploration. Intimate courtyards, unexpected views, sheltered gathering spaces, and varied streetscapes should create a neighborhood that reveals itself gradually.
Despite Iceland's climate, the public realm must feel welcoming year-round. Thoughtful wind protection, lighting, and material choices should create spaces where people want to linger.
Rather than large, underutilized areas, we envision smaller, purposeful outdoor spaces—intimate gardens, sheltered seating areas, and productive landscapes that serve as genuine amenities.
This should become a place that every visitor to Iceland feels compelled to experience, while also serving as a vibrant neighborhood where locals want to live and spend their leisure time.
Programme Overview
The masterplan will accommodate a carefully curated mix of uses that together create a complete destination.
Integrated with the site's wellness philosophy and proximity to Sky Lagoon
Expanding on the area's established wellness identity
Experiences that make this a must-visit for every visitor to Iceland
A variety of housing types creating a genuine neighborhood
Ground-floor activation along key pedestrian routes
Viewpoints, waterfront promenade, intimate squares
Supporting the working harbor and maritime tourism
Phasing Considerations
Development will proceed over approximately 10 years. Proposals should address logical sequencing that allows Sky Lagoon to operate throughout construction, flexibility to adapt parking requirements as transit options mature, and early activation strategies that establish place identity before full buildout.
Waterfront and coastal development · Nordic or cold-climate architecture · Mixed-use masterplanning · Sensitive integration of tourism and residential uses · Place-making and public realm design
Format: Invited international design competition
Stage 1: Expression of Interest. Open call for qualified teams.
Stage 2: Up to five (5) selected teams develop a conceptual Development Plan proposal and long-term development vision for the Kársnes Waterfront area.
Honorarium: Provided to all shortlisted teams
Qualified teams are invited to submit expressions of interest including:
