Ikea announces plans to build affordable housing for employees in Iceland

Lian Parsons
Ikea's Icelandic employees can move in next summer (Source: Getty)

Ikea is in the process of building apartments for its Reykjavik employees in Iceland.

The residential block will have 36 apartments, ready in summer 2018. The smallest apartments will be available for around 100,000 Icelandic Krona, or £715.91 per month, compared to the average rental price of 175,000 krona (£1,254) for a one-bedroom flat in the city centre.

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The Ikea apartments will also come furnished (presumably with the brand’s furniture, natch).

Ikea's Iceland chief executive said at a conference last week that more senior employees would be most likely to qualify for the apartments and the rents are “less than people are people are paying for holes here and there in town”.

Ikea’s goal is to provide affordable, relatively quality housing for its employees as property rates in the city continue to increase. The company’s staff will be given priority, but the apartments may be offered to students as well as to other workers at a new Costco currently being built in the area.

Property prices in the greater Reykjavik area rose by nearly 14 per cent in the last year before November 2016, the sharpest increase in a decade. The city is currently around 30 to 50 per cent more expensive to live in than it was five years ago.

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