With skyrocketing property prices, the Swedish furniture giant wants to provide affordable housing to its staff

IKEA announced that it will build a residential block with 36 apartments to rent out to its employees in efforts to provide them with a more affordable alternative, as the property prices continue to rise in the Iceland's capital.

The development is set to open in the summer of 2018 and will be located near the only Ikea store in the country. The smallest furnished apartments will be available for 100,000 Icelandic Króna ($894.21) a month, while comparable apartments on the market rent for 175,000 krona ($1,555).

Property prices in greater Reykjavik increased by almost 14 percent over 12 months before November 2016, making them 30-50 percent higher than in 2011.

IKEA

IKEA announced that it will build a residential block with 36 apartments to rent out to its employees in efforts to provide them with a more affordable alternative, as the property prices continue to rise in the Iceland's capital.

The development is set to open in the summer of 2018 and will be located near the only Ikea store in the country. The smallest furnished apartments will be available for 100,000 Icelandic Króna ($894.21) a month, while comparable apartments on the market rent for 175,000 krona ($1,555).