Ikea builds homes in Germany

Beginning next month, new home-seekers in Germany will have an opportunity to purchase a townhouse and the lot it sits on for just under 180,000 euros from Ikea, the world's largest furniture retailer.

An apartment in a two-story multi-family building will be available for under 100,000 euros. Prices vary according to location and size, with the most expensive costing nearly 249,000 euros. The program will kick off at four sites initially.

Ikea opened the doors to its first model house in Germany for interested parties to tour this week.

Scandinavian look, energy efficient design

The prefab houses are the centerpiece of Ikea's Boklok (Swedish for “smart living”) program to sell Scandinavian-designed, competitively priced homes and apartments. The company has already introduced the scheme, successfully, in its home market as well as Denmark, Finland, Norway and the United Kingdom, and has built more than 4,000 homes so far. Now it hopes to expand in Germany.

But is the country ripe for pre-fabricated townhouses made by Ikea? Petra Sievert, a Dusseldorf-based architect and city planner, told Deutsche Welle she thinks the development will prove popular.

“I have no problems with the design or the concept, for that matter, as long as everything blends into a city,” Sievert said. “I expect Ikea to grab a good chunk of the market; its prices are very competitive.”

No basement in Germany?

In its first step, Ikea plans to build 60 townhouses and 20 one-to-three bedroom apartments, with the first to go up in the cities of Wiesbaden and Offenbach, followed by Nuremberg and Hofheim. The 84 to 102-square-meter energy-optimized homes can include a living and dining area, between two and three bedrooms, two bathrooms, a kitchen and a storage area. Unlike most townhouses in Germany, the Boklok homes will be built of wood and have no basement.

“It's all a question of price,” architect Sievert agrees. “With wood, quality doesn't have to suffer – it's actually energy efficient. And I think plenty of people are willing to live without a basement if they can live within their own four walls.”

Lottery to sell homes

Home-seekers can apply to buy a Boklok townhouse at Ikea stores near the four cities selected for the first homes. Expecting a run on the homes, Ikea plans to hold a lottery, as the company has done in the other Boklok markets.

Eventually, Ikea plans to expand the Boklok program across Germany, according to company spokeswoman Sabine Nold. But she declined to comment on when and where.

As for the site selection criteria, ideal locations are near big cities and have good transportation connections and good infrastructure such as stores and schools, Nold said.

The criteria fit numerous towns on the fringes of large cities, like Willich near Dusseldorf. For years, Willich has been offering affordable lots and homes to young families or couples with family plans - particularly those from unable to afford Dusseldorf's pricey real estate.

“We're certainly not opposed to the (Boklok) idea,” said a spokesman from the City of Willich. “But we already have some huge construction projects here. I'm not sure how Ikea would fit in.”

Ikea is ubiquitous in Germany and, most likely, will have no big problem finding buyers for its new homes. But many of the young people the company is targeting may prove a hard sell.

“Most of my home furnishings are from Ikea and that's the case with nearly everyone I know in my generation,” Jenny Bauer, a student in Muenster, told Deutsche Welle. “I think the Ikea home idea is really interesting but I'm not sure how much more Ikea I want in my life.”

Author: John Blau
Editor: Sam Edmonds