Ikea in Iceland is building a new apartment with 36 flats for its employees in a bid to offer affordable housing, Morganbladid reports.
The new apartments will be built in the capital Reykjavik, close to the only Ikea store in the country.
According to the Icelandic newspaper, in the past year house prices in the region have seen the biggest spike since 2007, having risen almost 14 per cent.
Chief executive of Ikea Iceland Thorinn Ivarsson told the paper the development aims to provide housing at a reasonable price, with the lowest rent expected to be from 100,000 krona (NZ$1285) a month.
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“That’s a lot less than people pay for a dump here and there in town,” said Ivarsson.
Ikea staff will be given priority in renting the new housing, but it may also be offered to students and workers at a new supermarket being built in the area.
The Global Property Guide reporter last August the average price for a home in the country was 42 million krona (NZ$539,665) up 12.3 per cent from the previous year.