Islands Brygge station is situated in the rapidly evolving Islands Brygge area in the very northern part of the Ørestad redevelopment area, termed Ørestad Nord.

Specifically, the station lies below Ørestads Boulevard at its intersection with Njalsgade.

Nearby is Havneparken, a celebrated public park transformed from a former industrial site in 1984 with additions since then.

As one of six stations within or bounding the Ørestad redevelopment area, Islands Brygge has witnessed significant transit-oriented development.

Commercial development in the area includes Metropolitain, a 9,500 square metres (102,000 sq ft) office and shopping complex was opened in 2010.