Born in Grindavík, Alfreð played for Grindavík youth teams while also spending two years of his childhood in the Scottish capital Edinburgh while his father studied in the city.
•
Alfreð joined Breiðablik in 2005, featuring in the club's highly successful youth team alongside future internationals and/or expatriates Gylfi Sigurðsson, Jóhann Berg Guðmundsson, Elfar Freyr Helgason, Guðmundur Kristjánsson, Kristinn Steindórsson, Kristinn Jónsson and Aron Jóhannsson.