The top of Mount Esja - often called the city´s mountain. It can be seen from the whole Reykjavík area. Here clouds are crawling down the hills and I took this photo from my driveway with a 300 mm lens.
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Better suited for the rural landscapes challenge I think, though I'll give you the benefit of the doubt that this was taken at least close to an urban area. Quite a beautiful scene though I think if more mountain was in the frame and it was focused more sharply, it would be an excellent shot.