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IKEA Expands Pune Footprint with New City Store at Phoenix Marketcity

Ikea leases store in Pune

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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IKEA Signs 9-Year Lease for Retail Space in Pacific Mall, Delhi

Ikea leases retail space in Delhi

Global home furnishing giant IKEA has signed a nine-year lease agreement with Pacific Development Corporation for a prominent retail space in Pacific Mall, Najafgarh Road, West Delhi. The deal was registered on April 9, 2025, and covers a 14,471 sq. ft. area. It comes with a substantial security deposit of ₹4.25 crore, as per data shared by CRE Matrix.

The lease structure starts with a monthly rent of ₹30 lakh in the first year, with gradual escalations over the lease tenure. In the second year, the rent rises by 3.75% to ₹31.12 lakh. There will be a 2.41% hike in the third year, amounting to ₹31.87 lakh. A significant increase occurs in the fourth year, with the monthly rent jumping by over 20% to ₹38.49 lakh. This remains stable for the fifth and sixth years. In the seventh year, another sharp escalation of 18% pushes the rent to ₹45.42 lakh per month. However, this remains fixed through the eighth and ninth years. The agreement includes an 8-month lock-in period for the licensee.

This strategic expansion reflects IKEA’s increasing focus on penetrating high-footfall urban retail hubs. By securing a flagship global brand as a tenant, Pacific Mall strengthens its market positioning and is expected to see a further boost in customer traffic and overall brand mix.

The new store in West Delhi aligns with IKEA’s innovative ‘One Click, 30 Minutes Away’ model. Unlike large-format IKEA stores in Bengaluru, Hyderabad, and Navi Mumbai that offer the complete IKEA experience, the city store model caters to urban customers seeking curated solutions. The 15,000 sq. ft. store at Pacific Mall will stock around 800 smaller ‘cash-and-carry’ products available for immediate purchase. Altogether, there will be a display of a total of 2,000 items. Customers will also have the option to order products from IKEA’s full range, including kitchen solutions. The Customer Distribution Centre in Farrukhnagar will deliver them.

This move highlights IKEA’s continued strategy to expand its footprint in India. It reflects IKEA’s focus on blending physical and digital experiences for modern urban shoppers.

Recent Transactions

Delhi’s commercial real estate market remains active, witnessing several high-value lease transactions recently, driven by strong demand from global brands and retailers seeking prime urban retail and office spaces.

Reflecting this trend, in August 2025, Tesla India Motors and Energy Pvt Ltd recently entered into a nine-year lease agreement for an 8,200 sq ft showroom space located in Delhi’s Aerocity.

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