IKEA, one of the world’s most popular furniture makers, plans to open a supersized store in Ballymun, among Dublin’s most disadvantaged suburbs.

Dick Roche, the environment minister, has agreed to lift a ban on shops larger than 65,000 sq ft to entice the flagship store into the area, currently undergoing a state-sponsored €2 billion facelift.

The government hopes that the Swedish chain — which so far this year has catered to 400m customers around the world — will draw people to the destination, providing a much-needed economic boost to the former sink estate. Roche says he will grant a one-off exemption to the ban on giant stores.

The shop will be almost five times the maximum size usually allowed in Dublin, and should create up to 500 jobs with an investment of €100m.

The regeneration of Ballymun is the biggest ever such project undertaken in Europe and its success is vital to the government.

It involves the demolition of seven 15-storey residential tower blocks, and dozens of smaller multistoreys to make way for 5,000 new homes, a main street and a retail shopping park, whose anchor tenant now looks set to be Ikea.

The notorious estate was built in the 1960s, part of a wave of high-rise development by local authorities across Europe. Initially seen as a symbol of modern achievement, the development lacked community facilities and transport infrastructure, and soon became a drug and crime hot spot.

Ikea has long expressed a desire to enter the republic but has insisted it would only do so if it could build a jumbo store. Amid growing concern that the investment might be taken north of the border, where no such cap on shop sizes exists, the government is expected to make an exception to the rule in the next four to five weeks.

“I am very anxious that the benefits of having an operator like this on the island be captured in the republic,” said Roche.

“The self-evident consumer demand, which is there, should be addressed. But I am also anxious not to open the floodgates and have inappropriate development on the outskirts of every town.”

Ballymun Regeneration Limited (BRL), the Dublin city council subsidiary charged with the radical rebuilding of the suburbs, said the arrival of the popular furniture shop would be of enormous benefit to the revamped area.

Ikea has more than 200 stores in 30 countries, employing some 70,000 people. Its simple but attractive flatpack furniture designs and low prices generate huge sales worldwide, and the average Ikea store stocks 11,000 products.

The demolition of 3,800 high-rise flats in Ballymun is still going on, as is the construction of more than 5,000 replacement homes in the phased programme. The 15- storey Pearse tower was demolished in the summer and two more have been vacated.

Work is well advanced on Ballymun’s new main street.

A €60m civic centre is up and running, and an equally impressive community leisure centre is being fitted out and due to open soon.

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