Expensive land obstacle for “Ikea” company

Expansion of the Swedish furniture manufacturer “Ikea” to the market of Serbia, Croatia and Slovenia is going according the plan, but the company is finding some problems.

An obstacle for expansion of “Ikea” in Serbia and Slovenia is primarily high price of the land, which has already been bought in Croatia, stated “Ikea” Regional Manager for Slovenia, Croatia and Serbia, Dragan Skalusevic.

According his words, another problem in Serbia is bureaucratic procedure, while in

Croatia “Ikea” is searching the land with already developed infrastructure as the costs of ground development in that country are high.

“Ikea” is hoping to get in Croatia a building permit by the Spring 2010, so that the store could be opened for sale one year later.

- Expansion to ex-Yugoslavian markets is a part of the plans from 2010-2020, but before 2010 “Ikea” could not open its store in Slovenia even if it wanted it, it was written in Slovenian press quoting Mr. Skalusevic’s words.

Negotiations for land purchase in Ljubljana are still active, as the prices are very high, “the lowest being between 500-550 euros per square meter, which is more than expensive”, stated as well “Ikea” representative.

On that occasion, Belgrade’s Mayer, Dragan Djilas made clear that not one large company, even if it was Swedish furniture manufacturer “Ikea” would get a land in Belgrade “under special conditions, to which others don’t have the right”.

On journalist’s question if Mr. Mayer had any knowledge that “Ikea” was giving up from building their object in Belgrade, Mr. Djilas answered that he had no such information and that negotiations about the locations were still being taken.

- They could not guarantee the agreement with the Ministry of economy about construction of a factory in Serbia, but Belgrade is ready to support any large company which is ready to invest in our city. I expect that the project will be in the end finalized, one way or another, said Djilas.