IKEA India leases 37,259 sq ft retail space at Pune’s Phoenix Marketcity Mall for ₹23.54 crore for nearly five years
Pune real estate update: IKEA India has leased ground-floor retail space at Phoenix Marketcity Mall at a starting monthly rent of ₹38.11 lakh
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, for a total rent of ₹23.54 crore for 4 years and 11 months, according to property registration documents accessed by CRE Matrix.
The ground-floor space will have a starting monthly rent of ₹38.11 lakh for the first 36 months, increasing to ₹42.69 lakh for the remaining period.
The agreement was signed on October 15, 2025 between IKEA India Ltd. and Vamona Developers Private Limited, of Phoenix Mills Ltd.
A stamp duty of ₹6,26,800 was paid for the transaction, along with a registration fee of ₹1,000, as per the documents.
The monthly rent will commence on February 22, 2026, following a fit-out period from September 2025 to February 21, 2026.
In addition, IKEA will pay common area maintenance charges of ₹7.45 lakh per month for the first 36 months, increasing to ₹8.34 lakh per month for the remaining period, as per the documents.
IKEA India will pay a security deposit of ₹2.28 crore for the entire lease transaction to the retail space owner, followed by a common area maintenance deposit of ₹44.71 lakh, according to the documents.
IKEA India confirmed the transaction.
“Pune has been an important market for IKEA India and one where we’ve seen strong demand from our customers right from the start. We launched our e-commerce presence in Pune in January 2020- making it the second market in India to access the full IKEA range online before a physical store opened. Since then, customers in Pune have been able to explore and shop our entire range of over 6,500 affordable, well-designed home furnishing products online, reflecting the growing appetite for modern home solutions and the convenience of our omnichannel approach," an IKEA spokesperson said in an email response.
"Given its proximity to Navi Mumbai, many customers from Pune have also embraced the IKEA Navi Mumbai store experience, visiting for inspiration, ideas, and everything for the home under one roof. 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. We will be able to share more details once we are ready to announce,” it said.
An email query has been sent to Phoenix Market City Mall in Pune. The story will be updated if a response is received.
IKEA India business growth
IKEA has established a presence in several Indian cities. Its first store opened in Hyderabad’s HITEC City in 2018, followed by outlets in Navi Mumbai’s Turbhe area in 2020, Mumbai’s Worli neighbourhood in 2021, and Bengaluru’s Nagasandra location in 2022.
More recently, IKEA launched a city-store format in Delhi’s Pacific Mall, Tagore Garden, in 2025. The company plans to open large-format stores in Gurugram and Noida in the coming years as part of its ongoing expansion strategy.
IKEA expects its India sales to grow by over 10 per cent in the financial year 2025, according to a PTI report.
Also Read: IKEA to start online deliveries in Delhi-NCR and 9 satellite markets starting March 1
Ingka Group operates IKEA stores in 31 countries, including India. IKEA, which generates around 30% of its sales through online channels, is seeing an impressive surge in queries. In FY24, IKEA in India reported a widening of its total loss to ₹1,299.4 crore, despite its revenue from operations reaching ₹1,809.8 crore, a 4.5% increase, according to the report.
