There is no real city in the Faroe Islands. Nevertheless, the capital Tórshavn is an ambitious town that is growing faster than other towns in the country. Already now the proximate suburbs of Tórshavn house a third of the population of Tórshavn, and within the next couple of decades the population in the proximate suburbs (especially Argir in the south and Hoyvík in the north) will exceed the population of the original town of Tórshavn (all settlement within the 1866 boundaries of the municipality).
In some sense most of the rural area of the Faroe Islands can now be seen as suburbs or satellite regions of Tórshavn. Due to the huge investments in infrastructure, about 75% of the Faroese population are now living within one hour of the capital. These area include the entire islands of Streymoy, Eysturoy and Vágar and the relatively large town Klaksvík on Borðoy. Furthermore, the small islands in the proximity of Tórshavn (Nólsoy, Hestur and Koltur) are now a part of the municipality of Tórshavn.