Reykjavik is the one of the world’s smallest capital cities, and Iceland’s first permanent settlement: it was established by the Nordic settler Ingólfr Arnarson in AD 870. The Reykjavik Capital Area has a population of just over 200,000: that’s two-thirds of the entire population of the country. The city itself is home to just over 120,000 inhabitants, making it incredibly easy to get around on foot. To be right in the heart of the city, look for an apartment in the vibrant Downtown area, perfectly placed for getting home after an evening sampling Iceland’s famous nightlife. The main commercial street of Laugavegur is handy for amenities and offers a surprisingly good range of shops for a small city, from high street to designer. Book an apartment in the old town to enjoy the colourful picture-perfect buildings that Reykjavik is famous for, and plenty of cosy cafes and bars.