Puravankara has entered into a leasing agreement with IKEA India . The total area leased includes more than 1.2 lakh sq ft of retail space at Purva Zentech Park, on Kanakapura Road in Bengaluru. The agreement with IKEA is significant, as the retail behemoth will occupy a large-format store in a new commercial development in Bengaluru city.
Purva Zentech Park is a mixed-use commercial and residential project having a total leasable and saleable area of approximately 960,000 sq ft. This project is at the stage of construction and the anticipated date of completion is early 2026. According to the deal, IKEA is going to have the first and second floors of the building. It is planned to deliver the area in the first quarter of 2026, with the opening of the store planned to take place shortly after.
Colliers India’s office services team acted as the advisor on the transaction. Rajat Rastogi, CEO – West & Commercial Assets, of Puravankara, said, “Their decision to occupy retail space of more than 1.2 lakh sq ft of leasable area across two floors is a strong endorsement of the project’s strategic location, smart design, and adaptable retail layout.”
The deal between Puravankara and IKEA India is crucial for quite a few reasons. First of all, it signals that large-format retail spaces are very much needed in Bengaluru. The city has been experiencing an increase in retail consumption for the last couple of years, which is mainly a result of the rising urban population, increasing middle class, and international brand entries. Besides that, the accord reflects a positive mood regarding Purvankara’s project, its location, and the overall plan.
Purva Zentech Park is the combination of retail, office, and other commercial spaces. Such mixed-use developments have become the norm not only in Bengaluru but also in other metro cities. The developments blend various commercial functions into one location, thereby becoming attractive both for tenants and consumers. The value of the project will increase with the IKEA commitment as a tenant, since retailers, in general, are the anchor tenants who attract other businesses to the development, the trend being the same globally.
Over the past several years, IKEA India has been increasing its footprint in the Indian market. Large-format retail operations of this nature have very specific needs in terms of space, logistics, and location.
The area along Kanakapura Road has undergone a drastic change both residential-wise and commercially over the past 2 or 3 years. One of the major reasons for this change is that this area is well connected to Central Bengaluru and other important parts of the city which makes it an ideal location for any big retail store to set up their outlet. By choosing Purva Zentech Park as the location of their store, IKEA shows that their priority is still the availability of the location and ease of accessibility of the site for customers and not just hectic coommercial leasing decisions.
Puravankara is holding a commercial development pipeline of 3.2 million sq ft. Almost two million sq ft of this area is anticipated to be given the certificate of occupancy within the current financial year. This statement reflects the magnitude of the company's activities and its concentrated efforts in finishing its projects and providing occupiable spaces. Signing the lease with IKEA is a milestone act in the execution of this plan since it is a way of ushering a widely known tenant in the project.
Large-format retail leases also affect the economy in some ways. In essence, these stores create a lot of jobs, increase foot traffic, and thus local businesses get lively and the wheel of the economy keeps on turning. Workers, suppliers, and service providers, who will be involved in the operations of IKEA, are among the few people who will be the main beneficiaries of this project. Besides, other retailers, and businesses coming from nearby areas are also more likely to get their activity levels to go up.
Bengaluru’s retail scene has been constantly changing as a direct response to consumer behavior, demand, and also the city's development. Big-box retail model stores such as IKEA come with very specific infrastructure needs which may include warehousing requirements, exhibition areas, and customers' movement routes within the store. These are some of the features that Purva Zentech Park provides, thereby making it a viable option for world-class retailers and brands.
Image- purvazentech.com
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