Reykjavik is a spread out city with the city center not very densely populated. The Reykjavík Capital Area consists of seven municipalities with approximately 200,000 inhabitants, comprising two-thirds of the Icelandic population. Reykjavik is by far the largest community in Iceland. Reykjavik city is easy to navigate, whether by foot, bicycle, public transport or car. If you are planning to spend some time in the city and you dont have a car we reccommend staying in 101 Reykjavik or very close to 101. Public transport (called Strætó) is fairly good (some say just acceptable), with a network of buses serving Reykjavik and its suburbs, while taxis are always available.
Visit Reykjavik Tourist Center for more general information about the city