Hafnarnes hamlet was a small fishermen settlement thriving on the south side of fjord Fáskrúðsfjörður in the early 20th century. The numbers of the residents decreased steadily in the sities leaving the hamlet deserted in the early seventies.

The French Hospital, one of the main houses of the French Project in Fáskrúðsfjörður Town, was removed form its foundation and moved to Hafnarnes in 1939, serving there as an apartment building.

In the year 2010 Fjarðabyggð municipality moved the building back to the town, where it has been restored to its former splendour by Minjavernd, the Iceland Heritage Instution.