Reykjavík’s most beautiful promenade traces the shore of Kollafjörður Fjord, an inlet of Faxaflói Bay. You might never notice the high-rise apartments in the Skuggahverfi neighborhood while savoring the vista to the north. Several islands seem to float in the crystal blue water. All are uninhabited unless you count the colonies of seabirds. The largest two islets are Engey and Viðey. Mount Esja defines the opposite coastline. Also watch for Minke whales plus dolphins and porpoises. The rectangular blue building on the horizon is Höfðatorg. This was part of an ambitious development of Iceland’s financial district until all three of the country’s banks defaulted during the economic bust of 2008.