Ikea to open first physical store in Pune at Phoenix Marketcity Mall; to pay Rs 38 lakh per month in rent

Swedish home furnishings giant IKEA India has leased 37,259 sq. ft. of retail space at Phoenix Marketcity Mall, Viman Nagar Road, Pune, marking its entry into the city’s offline retail market. 

Advertisment

The lease, which is valued at Rs 23.54 crore for 4 years and 11 months, was signed on October 15, 2025, between IKEA India and Vamona Developers Pvt. Ltd., part of Phoenix Mills Ltd., according to property registration documents accessed by CRE Matrix.

The ground-floor space carries a starting monthly rent of Rs 38.11 lakh for the first 36 months, rising to Rs 42.69 lakh for the remaining term. A stamp duty of Rs 6.27 lakh and a registration fee of Rs 1,000 were paid for the transaction.

The rent period will commence on February 22, 2026, after a fit-out phase from September 2025 to February 21, 2026.

Notably, IKEA will also pay common-area maintenance charges of Rs 7.45 lakh per month initially, increasing to Rs 8.34 lakh later, and has provided a security deposit of Rs 2.28 crore along with a maintenance deposit of Rs 44.71 lakh, the documents show.

Confirming the development, an IKEA spokesperson said Pune had been an important market for the company since it launched its e-commerce operations in the city in January 2020, making it the second Indian market to access IKEA’s full product range online before a physical store.

“Given its proximity to Navi Mumbai, many customers from Pune have also embraced the IKEA Navi Mumbai store experience. 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.

The upcoming store will be the sixth IKEA outlet in India, after those in Hyderabad (2018), Navi Mumbai (2020), Mumbai Worli (2021), Bengaluru Nagasandra (2022), and Delhi Tagore Garden (2025).

Phoenix Marketcity, owned by Phoenix Mills Ltd., also operates malls in Mumbai, Bengaluru, Indore, and is expanding to Kolkata.

Besides the Pune city store, IKEA operates a distribution centre in Chakan, which services its western and southern markets. The firm also manages an outsourced distribution hub in Haryana to support its planned expansion in the National Capital Region.

Globally, Ingka Group, which operates IKEA stores in 31 countries, generates about 30% of sales through online channels. In India, the company reported revenue of Rs 1,809.8 crore in FY 2024, up 4.5% year-on-year, while its loss widened to Rs 1,299.4 crore, according to a PTI report.