Ingólfstorg Square in downtown Reykjavik is transformed into Yule Town each December. Yule Town offers a wide selection of local, hand-crafted gifts, decorations, artisanal food, and an ice-skating rink in the middle of the square. Yule Town is usually open December 2-23.
The Jólakrás Street Food Market is held the weekend before Christmas in Fogetagarðurinn, a central square in Reykjavik. There, a large statue of the 18th-century sheriff and so-called Father of Reykjavik, Skúli Magnusson, can be found. The Christmas-themed version of the Krás Street Food Market held each summer, Jólakrás features Reykjavik’s best chefs collaborating to create Christmas-themed street food.
Kolaportið can feel like another world entirely. Located downtown with a view of the harbor, this former coal port is where Icelanders come to sell their wares when moving house, moving out of the country, or just spring cleaning their closets. One can find just about anything—rare books, jade Buddha statues, kimonos, handmade jewelry from Kenya, fur coats, boots, you name! Kolaportið is only open on the weekends from 11 a.m. to 5 p.m..
The whole downtown area of Hafnarfjörður becomes one large Christmas Village around Christmastime. The local children are in charge of decorations, while the local schools provide entertainment like singing and theater. There are also various street vendors selling handmade crafts, as well as street food and drinks. The Christmas Village opens late November and is open on weekends until Christmas.
The annual Crafts & Design Christmas Market and the Christmas tree sale in Heiðmörk Woods, located on the outskirts of Reykjavik, is open on weekends about a month before Christmas. There is plenty to see at this market, which mainly sells hand-crafted items. Each day when the market is open, small bonfires are lit and people read Christmas stories to children. The Icelandic Santa Clauses, or Yule Lads, often make appearances too.