The 51-piece On the Move collection was inspired by research IKEA commissioned, which found that one in five urban dwellers now lives in a space smaller than 30 square metres.
Included are wardrobes created by French designer Matali Crasset, which have been made affordable for aspiring design collectors at just £100, a storage table by New York's Rich Brilliant Willing and a folding table by British-based designer Mathias Hahn.
"We were thinking about the needs of the young urban generations that often forgo space to follow their dreams in the big cities," said Gemma Arranz, interior design manager for IKEA UK and Ireland. "The collection is flexible, affordable, beautiful and can be easily moved within the home to maximise the smallest of spaces."
Highlights include a shelf system that can be propped against a wall, influenced by designs from Japan where rental terms often forbid the attachment of more permanent fittings.
Other products consist of a small angular bureau, an unusually narrow bench for tight hallways and modular wooden storage boxes with powder-coated metal frames.
A number of the objects are also multifunctional, such as a stool that can act as a light or a nightstand with a built in magazine rack and reading light.
IKEA has been producing limited PS ranges since 1994, targeting design-savvy shoppers who may otherwise be tiring of the brand's ubiquitous products.
The IKEA PS (Post Scriptum) 2014 collection On the Move will go on sale on 1 April.
Here's more information from IKEA:
IKEA launches design collection for people on the move
PS 2014 collection designed to suit urban lifestyle
IKEA has launched its anticipated PS collection geared at smaller living spaces following research that shows one in five now live in a home smaller than 30m2 and nearly two thirds are based in a flat.
The global research found that two out of three people also admitted to needing to use every inch of their home in an efficient way and 50% choose their furniture based on how functional it is rather than the appearance.
15% of those surveyed also admitted to feeling that they don't know how long they can stay in their home for and nearly a third have moved more than twice in the last three years.
As a response to this growing trend of compact, changeable lifestyles in urban environments, IKEA invited young designers from around the globe to bring their local influences and insights into co-creating this year's PS collection On the Move, resulting in 51 flexible products tailored to urban living.
Including products made from bamboo and steel, the range is the most affordable PS offering to date, ranging from a miniature indoor greenhouse for the urban gardener by designer Nicolas Cortolezzis to a balancing bench by Henrik Preutz for the young at heart.
Products such as the PS Wall Shelf use every space available, allowing unused corners to reach their maximum potential, while the PS Plant Stand brings the outdoors in while using minimum floor space.
IKEA launches the 8th PS collection since 1994 as an answer to the latest movements and trends in design and in life at home, combining form, function, quality, all at an affordable price.
The IKEA PS 2014 Collection On the Move is available in store from 1st April onwards – visit www.ikea.co.uk for more information.
*In January 2014 YouGov performed a survey on behalf of IKEA among people aged 18-60, living in cities in Sweden, UK, France, US, Poland, Japan, China and Qatar. In each country 1000 persons were included in the survey (except for Qatar where only 500 participated).