Urbanization in Iceland shows an example of how a country with a small population and extremely difficult natural conditions can successfully develop urban centers. Despite its scattered and sparse population, Iceland has developed one of the highest rates of urbanization in Europe, with most of its population concentrated in Reykjavík. Here, in the epicenter of Icelandic urbanism, residents have managed to combine modern infrastructure with a unique natural landscape. Historically, urbanization in Iceland has been rapid, especially in the 20th century, when the population began to move from the countryside to the cities, especially Reykjavík. The development of urban infrastructure and economic activities further strengthened the urbanization trend. However, this population concentration also brings challenges such as spatial inequality, high living costs, and pressures on infrastructure. The sustainable approach to urban planning is visible in efforts to protect natural and cultural heritage and in strategies for balanced regional development. Smaller urban centers play an important role in balancing settlement and reducing pressure on the Reykjavík region. With its ability to adapt to natural conditions and innovative solutions, Iceland offers a model of sustainable urbanization that other countries can emulate. Its successful combination of modernity with tradition and constant efforts for the sustainable use of resources prove that it is possible to create a successful urban environment even in demanding natural geographical conditions.
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