Swedish home furnishings giant IKEA India Private Limited has leased 37,259 sq ft of retail space at Phoenix Marketcity Mall, Viman Nagar Road, Pune, marking a significant step in the company’s urban expansion strategy. The long-term lease, signed with Vamona Developers Private Limited (a Phoenix Mills Ltd entity) on October 15, 2025, spans 4 years and 11 months with a total rent of ₹23.54 crore.
The ground-floor space will carry a starting monthly rent of ₹38.11 lakh for the first 36 months, which will increase to ₹42.69 lakh for the remaining period. IKEA will also pay common area maintenance (CAM) charges of ₹7.45 lakh per month initially, rising to ₹8.34 lakh later. A security deposit of ₹2.28 crore and a CAM deposit of ₹44.71 lakh have also been paid. The lease agreement allows for a fit-out period from September 2025 to February 21, 2026, with operations set to begin from February 22, 2026.
An IKEA spokesperson said, “Pune has been an important market for IKEA India, where we’ve seen strong demand since launching our e-commerce presence in January 2020. Customers have been able to access our complete range of over 6,500 home furnishing products online, and this new physical store will further enhance our omnichannel presence in the city.”
IKEA’s India expansion has been steady. The company opened its first store in Hyderabad (HITEC City) in 2018, followed by Navi Mumbai (2020), Mumbai’s Worli (2021), and Bengaluru’s Nagasandra (2022). Most recently, a city-store format launched in Delhi’s Pacific Mall in 2025. Plans for large-format stores in Gurugram and Noida are underway, reinforcing IKEA’s commitment to growing its urban presence.
The Pune lease reflects IKEA’s confidence in the city’s growing retail market. “Many customers from Pune also visit our Navi Mumbai store for inspiration, reflecting the demand for IKEA’s products in the region. This new city store will bring a more dynamic shopping experience closer to home,” the spokesperson added.
Despite reporting a widening total loss of ₹1,299.4 crore in FY24, IKEA India’s revenue from operations rose 4.5% to ₹1,809.8 crore, with approximately 30% of sales coming from online channels. The company expects India sales to grow over 10% in the 2025 financial year, reflecting optimism about its expansion and the growing appetite for modern, affordable home solutions.
With this lease at Phoenix Marketcity Mall, IKEA continues to strengthen its retail footprint across India, combining physical stores and digital platforms to cater to a diverse and growing consumer base. Pune, with its increasing urban population and demand for organized retail, remains a key focus for the Swedish brand’s long-term strategy in India.
Image- phoenixmarketcity.com/pune
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