Fálkahúsið "The House of the Falcons" is in my opinion one of the most beautiful houses in the old center of Reykjavík. It was moved from Bessastaðir (the residence of the president) to Reykjavík in 1763.
Fálkahúsið is named after the Icelandic falcons, which were considered the best hunting falcons in the world, and housed the falcons until they were sent abroad to the Danish king. The original house was then torn down and another one built in 1868 and since then a lot of stores and restaurants have been in this beautiful house.
You will see falcons on the roof if you look closely.
When I was going to discos 6 years ago I practically lived in Fálkahúsið. There was one of the most popular discotheques in the center of Reykjavík on two floors. There is now a restaurant where the disco was located. I still miss this place, but on the other hand I find it hard to fathom why it was allowed to run a disco in such an old and historic house - made of timber. There was even a disco in the oldest house in Reykjavík in Aðalstræti (see my tip).
In this house Icelandic Falcons were kept on this site before being shipped to buyers of the European aristrocarcy. Statues of falcons adorn the house today to remind one of its former use.