Swedish home furnishing giant IKEA India Private Limited is set to strengthen its urban retail footprint with its first-ever store in Pune, leasing 37,259 sq. ft. of prime retail space at Phoenix Marketcity Mall, Viman Nagar.
According to property registration documents accessed by CRE Matrix, the total lease value stands at ₹23.54 crore for 4 years and 11 months. The agreement was officially signed on October 15, 2025, between IKEA India Ltd. and Vamona Developers Private Limited, part of Phoenix Mills Ltd.
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Inside the Lease Details
The ground-floor store will begin operations after a fit-out period from September 2025 to February 21, 2026, with the monthly rent commencing February 22, 2026.
- Starting Rent: ₹38.11 lakh/month (first 36 months)
- Revised Rent: ₹42.69 lakh/month (remaining period)
- Common Area Maintenance (CAM): ₹7.45 lakh/month, later rising to ₹8.34 lakh/month
- Security Deposit: ₹2.28 crore
- CAM Deposit: ₹44.71 lakh
- Stamp Duty: ₹6,26,800
- Registration Fee: ₹1,000
This lease reflects IKEA’s steady push into India’s top-tier urban centers — a move aligned with its long-term omnichannel retail strategy.
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Why Pune? IKEA Explains the Choice
An IKEA spokesperson confirmed the development, emphasizing Pune’s strategic importance:
“Pune has been an important market for IKEA India and one where we’ve seen strong demand from our customers right from the start. We launched our e-commerce presence here in January 2020, making it the second market in India to access the full IKEA range online. The strong response from Pune’s customers made this next step natural.”
The spokesperson added that Pune’s proximity to Navi Mumbai has also driven interest, as many shoppers have already experienced the IKEA Navi Mumbai store.
“Pune continues to be a priority market for us, and we are now excited to bring a more dynamic IKEA experience through a true omnichannel presence, starting with a city store. We will share more details once we are ready to announce,” the statement read.
IKEA India’s Growth Journey
Since entering India, IKEA has built a strong and growing presence:
- 2018: First large-format store opened in Hyderabad’s HITEC City.
- 2020: Second outlet launched in Navi Mumbai’s Turbhe area.
- 2021: Third store came up in Mumbai’s Worli neighbourhood.
- 2022: Fourth store began operations in Bengaluru’s Nagasandra.
- 2025: Introduced a city-store format in Delhi’s Pacific Mall, Tagore Garden.
With upcoming large-format stores in Gurugram and Noida, IKEA’s expansion in India shows no signs of slowing down.
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Financial Performance and Future Outlook
Despite a challenging retail landscape, IKEA India continues to invest aggressively in its growth plans. The brand expects over 10% sales growth in FY25, according to a PTI report.
The Ingka Group, which operates IKEA stores across 31 countries including India, derives nearly 30% of its global sales online — a trend also visible in the Indian market.
In FY24, IKEA India’s revenue from operations rose 4.5% to ₹1,809.8 crore, while total losses widened to ₹1,299.4 crore, reflecting heavy expansion investments and growing operational costs typical of its long-term market penetration strategy.
A Step Towards IKEA’s Urban Vision
With the Pune city-store, IKEA continues to adapt to India’s evolving urban consumer behavior — balancing experience-driven retail spaces with online accessibility. The new outlet at Phoenix Marketcity Mall will not only bring IKEA closer to Pune’s shoppers but also mark another milestone in the company’s mission to make affordable, well-designed furniture accessible to every Indian home.
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