My answer is absolutely a big YES.

Don’t be afraid of luminous pollution due to city of Reykjavik.

If the intensity of northern lights is enough strong and the sky is clear, you can experience an aurora borealis directly inside the city of Reykjavik.
The best period is winter for seeing aurora borealis in Iceland but you can see some in the late autumns or spring , depends on weather conditions and clear sky.

We even experience a beautiful northern light going out the city at four o’clock in the morning for going to the airport of Keflavik.

Hallgrimskirkja church

northern lights - reykjavik - aurora borealis
northern lights – reykjavik

sun voyager

northern lights – reykjavik – sun voyager

Reykjavik street

northern lights - reykjavik
northern lights – reykjavik
northern lights - reykjavik
northern lights – reykjavik

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