Global furniture giant IKEA’s India arm has taken a strategic step in expanding its footprint in the city of Pune by leasing approximately 37,259 sq ft of retail space in the prominent mall Phoenix Marketcity Pune. The lease, signed for a span of four years and eleven months, commenced on 25 September 2025 and is slated to run until 24 August 2030, according to documents accessed by CRE Matrix.
Positioned on the ground floor of the mall in Viman Nagar Road, Lohegaon, this site will become a “city store” for IKEA India, signalling a move to deepen its omnichannel presence in the Pune market—beyond just online and major destination stores. The monthly starting rent set by IKEA is ₹38.12 lakh, the total agreement value at ₹3.06 crore, and the initial security deposit paid at ₹1.15 crore (from a required ₹2.3 crore), highlighting the seriousness of the commitment.
According to IKEA India, Pune has long been a key market where strong customer demand has been evident—many of its shoppers have historically travelled to the Navi Mumbai store for inspiration and full-range home furnishing. The launch of online e-commerce services in Pune in January 2020 made it the second Indian city after Mumbai to access IKEA’s full range digitally—over 6,500 well-designed, affordable home furnishing products are now accessible online to local shoppers.
By choosing a city-store format in a high-traffic mall, IKEA appears to be bridging the gap between its digital channel strength and the classic store experience, thereby tapping into both convenience-oriented consumers and the traditional retail-experience seekers. In a city known for its expanding residential base, improved infrastructure, and rising urban lifestyle demands, this move aligns well with the growing appetite for modern home solutions among Pune’s middle- and upper-income segments.
IKEA India’s new lease in Pune is a clear signal of the brand’s intent to combine physical retail, digital access, and local market penetration—all aimed at delivering a richer “home furnishing” experience to a city that is increasingly important in its growth map.
Earlier in September 2025, IKEA signed a nine-year lease with Pacific Development Corporation for 14,471 sq. ft. at Pacific Mall, West Delhi, with a security deposit of ₹4.25 crore.
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