Best Holiday Apartments in Iceland — Biggest Selection & Lowest Prices Guaranteed

Holiday apartments are one of Iceland's most flexible accommodation options — private, self-contained, and almost always equipped with a full kitchen, washing machine, and living area. They're the natural choice for families, groups traveling together, or anyone staying in one location for more than a couple of nights. In Reykjavik especially, a holiday apartment is often more comfortable and better value than a hotel room for stays of three nights or more.

Holiday apartments are concentrated in Reykjavik and Akureyri but are increasingly available in South Iceland, along the Ring Road, and in the larger towns of every region.

Why Choose A Holiday Apartment In Iceland

Apartments give you three practical advantages: a kitchen, living space, and laundry facilities. The kitchen matters because groceries in Iceland are reasonably priced while restaurants are not — cooking even half your meals can cut a trip's food bill significantly. Living space matters to families with children who need somewhere for kids to play and unwind before bedtime, and to groups of friends who want to spend evenings together rather than apart in separate hotel rooms. Laundry is a genuine benefit on longer trips, particularly after a few days of hiking.

Apartments also suit work-from-anywhere travelers, couples on slower-paced itineraries, and anyone renting a car who wants a base for several days of day trips.

What To Expect In An Icelandic Holiday Apartment

Size And Layout

Apartments in Iceland range from compact studios that sleep two, to two- and three-bedroom apartments for families and groups of six or more. Expect a separate living room in most cases, with a sofa bed for additional guests. Most have one or two bathrooms, depending on size.

Kitchens And Cooking

Kitchens in Icelandic holiday apartments are typically fully equipped — cooker, oven, microwave, full-size fridge and freezer, kettle, coffee maker, pots, pans, and cutlery. Dishwashers are standard in the newer Reykjavik apartments. Coffee makers are almost universal, often moka pots or drip machines; bring your own pods if you use a capsule machine.

Other Amenities

Free Wi-Fi is universal. Washing machines are common in apartments intended for longer stays. Many Reykjavik apartments include access to the building's shared laundry room or offer paid laundry service. Outdoor space is rarer in city apartments but more common in the countryside, where apartments sometimes share a hot tub with other units.

Check-In And Arrival

Many apartments use self check-in with a code or key box rather than a staffed reception. Instructions are usually sent by email a day or two before arrival. If you're landing on a late flight, confirm the check-in procedure with your host before travel.

Holiday Apartments By Region

Reykjavik

Reykjavik has by far the country's largest selection of holiday apartments, from compact city-centre studios near Laugavegur to spacious family apartments in residential neighborhoods such as Vesturbaer, Hlidar, and Laugardalur. Parking varies — central apartments often don't include a dedicated space, while apartments slightly out of the centre usually do.

Akureyri

Akureyri has a growing cluster of holiday apartments in the town centre and in the hills overlooking the fjord. They're a strong alternative to hotels for multi-night stays or for travelers exploring the surrounding North Iceland region.

South Iceland And The Ring Road

Apartments in Selfoss, Hveragerdi, Hella, and Vik are a practical base for multi-day exploration of the South Coast, Golden Circle, and the Eyjafjallajokull area. These are often newer, purpose-built complexes with private parking and hot tubs.

Keflavik And The Reykjanes Peninsula

Apartments in Keflavik, Reykjanesbaer, and Njardvik are well-priced and convenient for flights and the Blue Lagoon. Useful if you have an early morning departure from Keflavik International Airport.

East And West Iceland

Holiday apartments are less common in remote regions but are growing in availability in Egilsstadir, Borgarnes, Isafjordur, and the Snaefellsnes Peninsula.

Booking And Practical Tips

Book early for summer — Reykjavik apartments fill up fastest from June through August. Weekly rates are often noticeably cheaper per night than three- or four-night stays, so consider extending if your schedule allows. Cancellation policies on holiday apartments tend to be stricter than hotels, so read the fine print before booking a non-refundable rate.

Most apartments ask guests to leave the kitchen clean on checkout; a final clean is included in the rate but loading the dishwasher before leaving is standard practice. Some apartments charge a small cleaning or linen fee separately; check the listing for the total cost before booking.

For longer trips, for families, and for any group of three or more, a holiday apartment is usually the best-value option in Iceland. The extra space, kitchen, and laundry pay off within a few days.