How commercial real estate investments drive financial growth and fuel IKEA Retail’s global omnichannel expansion

Strategic commercial real estate investments for the future of IKEA

As consumer habits shift, we have ambitions to make it easier to shop with IKEA, bringing our retail offer closer to more of the many people. Ingka Investments is contributing by strategically acquiring mixed-use properties in core inner-city locations.

By investing in commercial real estate opportunities in key urban centres, these units stand independently as financially resilient investments creating consistent returns for Ingka Group. They also help expand IKEA’s reach and strengthen its presence, alongside the substantial real estate portfolio of Ingka Group.

“By owning and managing these key locations, we ensure cost predictability for the IKEA store, which directly supports IKEA Retail’s mission to deliver high-quality, accessible products at affordable prices” says Jenna Grader, Ingka Investments Real Estate portfolio manager.

Prime locations, iconic stores

Rue de Rivoli, Paris

Our journey into city-centre retail formats began with the purchase of 144 Rue de Rivoli in 2020. This historic property, spanning 7,500 square meters across seven floors, with retail spaces on three levels and the upper floors leased to office tenants. The IKEA Paris Rivoli store, which opened in 2021, redefined the shopping experience for Parisians, blending IKEA signature style with the charm of central Paris in a new concept focused on interior accessories.

IKEA Paris Rivoli store – a prime investment location in Paris

Oxford Street, London

In 2022, Ingka Investments took on a London landmark: 214 Oxford Street at Oxford Circus. This seven-floor, 22,200-square-meter building houses an IKEA store, that opened in May 2025, spanning three levels and 5,800 square meters of retail space. But that’s not all – the building also features four floors of office space with rooftop terraces and three additional retail tenants.

We have not just opened another store; we’re preserving history. The meticulous three-year renovation of this heritage building focused on sustainability, taking the building off gas and replacing with energy-efficient air source heat pumps, installing secondary glazing for insulation, and illuminating its historic façade with elegant lighting. The result? A future-forward retail and office space that respects its past while embracing the modern city.

IKEA Oxford Street store – a key commercial real estate investment in London

Fifth Avenue, New York

In 2024, Ingka Investments secured a one-third stake in 570 Fifth Avenue – the whole block between 46th and 47th Streets for a groundbreaking ~93,000-square-metre mixed-use commercial development. Expected for tenant delivery in 2028, this flagship location is the largest project on Fifth Avenue in over six decades. This venture marks a major milestone in IKEA Retail’s US growth strategy and is set to redefine urban shopping in one of the world’s most famous retail destinations.

At the heart of this new development will be an IKEA customer meeting point almost 8,400-square-metres in gross area, housed in the building’s prime retail space with a dedicated Fifth Avenue entrance. Fully owned by Ingka Investments, this space is designed to meet high sustainability standards, aiming for a LEED Gold certification, demonstrating the building has excelled in its sustainable design and operation.

IKEA Fifth Avenue store – an iconic real estate development in the making (rendered image)

And we’re just getting started. As we continue to support IKEA Retail’s growth and global expansion, expect more long-term real estate investments that bring IKEA closer to the many, whilst delivering financial returns for Ingka Group. Stay tuned for what’s next!