It is a relatively new neighbourhood and is located on the eastern-most side of Reykjavík.

[1][2] The district includes 15 neighbourhoods: Hamrar [ˈhamrar̥], Foldir [ˈfɔltɪr̥], Hús [ˈhuːs], Rimar [ˈrɪːmar̥], Borgir [ˈpɔrcɪr̥], Víkur [ˈviːkʏr̥], Engi [ˈeiɲcɪ], Spöng [ˈspœyŋk], Staðir [ˈstaːðɪr̥], Höfðar [ˈhœvðar̥], Bryggjuhverfi [ˈprɪccʏˌkʰvɛrvɪ], Geirsnef [ˈceir̥sˌnɛːf], Gufunes [ˈkʏːvʏˌnɛːs], keldur, and Geldinganes [ˈcɛltiŋkaˌnɛːs].

Of those, five (Rimar, Hamrar, Borgir, Víkur and Foldir) fall within the boundaries of the historic Gufunes estate.

[3] Grafarvogur currently has one medium-sized shopping centre called Spöngin.

Also, there are small clusters of shops in Hverafold, in Víkurvegur and Langirimi Streets.