IKEA India Leases 37K Sq Ft in Pune Mall for City Store

Swedish home furnishings giant IKEA India is set to establish a strong retail presence in Pune, signing a lease for 37,259 sq ft at Phoenix Marketcity Mall on Viman Nagar Road. The lease, valued at ₹23.54 crore, spans 4 years and 11 months, reflecting IKEA’s growing focus on urban markets.

The agreement, inked on October 15, 2025, with Vamona Developers Private Limited of Phoenix Mills Ltd., will see a starting monthly rent of ₹38.11 lakh for the first three years, increasing to ₹42.69 lakh for the remaining term. The lease also includes a security deposit of ₹2.28 crore and common area maintenance charges starting at ₹7.45 lakh per month.

The store’s fit-out period is scheduled from September 2025 to February 21, 2026, with the monthly rent commencing on February 22, 2026. This carefully planned timeline ensures a smooth transition before the store opens its doors to Pune’s growing customer base.

IKEA India has been steadily building its presence across major Indian cities. Since launching its Hyderabad store in 2018, followed by outlets in Navi Mumbai (2020), Mumbai’s Worli area (2021), and Bengaluru (2022), the company has been rolling out both large-format and city-store concepts. The recent Delhi city store at Pacific Mall, Tagore Garden, opened in 2025, demonstrating IKEA’s omnichannel strategy that blends online shopping with physical experiences.

Pune, which has had access to IKEA’s online catalog since 2020, has shown strong demand for the brand’s modern home solutions. The new store will bring a comprehensive city-store experience, offering customers over 6,500 affordable and well-designed home furnishing products.

With this expansion, IKEA India continues its strategy of bridging online convenience with offline inspiration, aiming to enhance its footprint in key urban centers. The company also anticipates over 10% growth in sales for FY25, signaling confidence in India’s home furnishing market despite previous operational losses.

This move marks a significant step in IKEA’s ongoing efforts to bring its global retail expertise to Indian cities, offering both convenience and inspiration under one roof.