Swedish furniture major finalises lease for its first Pune outlet at Phoenix Marketcity, expanding its growing India retail footprint
Ikea is preparing to enter the Pune retail market, having finalised a lease for a large-format outlet at Phoenix Marketcity in Viman Nagar. The Swedish home furnishings major has taken up close to 37,300 sq ft of ground-floor space at the high-footfall mall.
The agreement, executed on 15 October 2025, runs for four years and 11 months. Ikea will pay an initial monthly rent of around Rs 38 lakh, which equates to roughly Rs 102 per sq ft. The rent is scheduled to escalate over the duration of the lease, rising to about Rs 42.7 lakh from the fourth year, as per the deed. The property is owned by Vamona Developers, and the mall is operated by Phoenix Mills.
This store will mark Ikea’s first physical presence in Pune, a city with a strong base of IT companies and global capability centres, widening its retail network in India. The retailer currently operates large and small-format outlets across Navi Mumbai, Bengaluru, Hyderabad, Kolkata, and Mumbai’s Worli.
The Pune deal comes months after Ikea secured space in the National Capital Region. In April 2025, the company signed a nine-year lease with Pacific Development Corporation for a 14,471 sq ft store at Pacific Mall on Najafgarh Road in Delhi.
The lease began with a monthly rent of Rs 30 lakh and includes periodic escalations, with the rent expected to increase to nearly Rs 31.9 lakh by the third year and rise to about Rs 38.5 lakh in the fourth year, eventually touching Rs 45.4 lakh from the seventh year. The Delhi agreement carried a security deposit of Rs 4.25 crore.
Ikea entered the Indian market in 2018 with its first store in Hyderabad and has since expanded through a mix of large warehouses, city stores, and online channels.
(With Input From PTI)
