A long, narrow, cobble-stoned alleyway with everything from small commercial galleries, to little old men selling their own paintings. Original oil paintings are very cheap, and make a nice, unique and authentic souvenir that'll hang on your wall forever.

Beware - some of the shops lower down sell low quality fakes. These are usually the places that sell other souvenirs too.

To the right of the cathedral, up the hill.

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Walk up to the Perlan for great city views. Then, go down the back side of the hill, past steaming hot springs and down to the hot beach (actually the water outlet from Perlan), then follow the path along the shore and round the back of the domestic airport. It's peaceful, shows you some 'real' Reykjavik as it goes past houses and is a nice way to spend a morning.

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