IKEA to open first store in Pune, leases space at Viman Nagar mall for ₹38 lakh per month
Ikea to Open First Pune Store at Phoenix Marketcity
Ikea India Pvt. Ltd has leased 37,259 sq. ft of space at Phoenix Marketcity mall in Pune’s Viman Nagar for its first store in the city. The lease is for a five-year tenure, with a starting monthly rent of approximately ₹38 lakh. The agreement was registered on 15 October, according to real estate data platform CRE Matrix.
The Swedish home furnishings retailer has been expanding its compact, city-store format in India as part of its broader omnichannel strategy. In August, Ikea opened a 15,000 sq. ft city store at Pacific Mall, Tagore Garden in New Delhi and has also announced expansion plans in Chennai and Pune in its next growth phase.
Ikea originally entered India’s retail market in 2013, after receiving approval under the country’s foreign direct investment (FDI) rules. The retailer currently operates large-format stores in Hyderabad, Navi Mumbai, and Bengaluru, along with several small-format city stores. The company also offers online deliveries across various locations including Pune, other cities in Maharashtra, and in states such as Andhra Pradesh, Telangana, and Gujarat.
“Ikea’s lease at Phoenix Marketcity, Pune, marks a significant milestone for India’s retail real estate landscape. The transaction reaffirms the strength of India’s consumption-driven growth story and the attractiveness of Grade-A malls for international retailers,” said Abhishek Kiran Gupta, Chief Executive and Co-founder of CRE Matrix. He noted that Pune has emerged as an important retail hub due to its growing affluent population and rising urban density.
The Ingka Group, which operates Ikea stores and shopping centres globally, is also developing large shopping malls anchored by Ikea outlets in Noida and Gurugram.
An Ikea spokesperson said Pune has been a key market with strong customer demand. Ikea launched its e-commerce operations in Pune in January 2020, allowing residents to access its full product range online before the opening of any physical store. “Given its proximity to Navi Mumbai, many customers from Pune have also visited 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 in the city, starting with a city store,” the spokesperson said.
As part of its ongoing strategy, Ikea will also open a second city store in Delhi and plans to add three more compact stores in the coming months. The retailer is increasingly shifting focus from large warehouse-style formats to smaller, centrally located urban showrooms to better suit dense metropolitan markets.
