Ikea, the global home-furnishing company, has purchased 10 acres of land in Gurugram for Rs 842 crore, making it the biggest deal to be struck by Huda, the Haryana government’s development agency.
The company got the land, located in Sector 47, through an e-auction. Ikea already has a presence in the city, a corporate office in Cyber Hub. The Gurugram land deal comes on the back of similar ones in Hyderabad and Mumbai, where Ikea is setting up stores. The Swedish firm, headquartered in the Netherlands, plans to open 25 stores in India by 2025 with an investment of Rs 10,500 crore.
The deal gave a burst of oxygen to cash-strapped Huda, which has been struggling to manage its coffers in the face of mounting land acquisition bills, a slowdown in the demand for land, and huge taxes due from realtors. Before this, Huda’s record deal was for a 7,820 sqm (2 acres) plot it sold to car-maker Hyundai in November 2016 for Rs 205.88 crore.
J Ganesan, chief administrator of Huda, said, “It will augment our efforts to ensure a steady revenue stream for Huda. This is not a one-off deal as we have planned auctions of other institutional and commercial properties across the city in the next few months. Gurugram has seen reduced demand for land, mainly due to rapidly changing investment scenario in real estate, especially in commercial sector.”
Ganesan hoped the Ikea land deal would act as a trigger for the real estate market and help in reviving business sentiment in the city. “Contrary to the prevailing trend of falling real estate prices and reduced demand, this deal exhibits the city’s potential to be a global destination,” he said.