IKEA is set to open its first store in Pune at Phoenix Marketcity, Viman Nagar, marking a significant expansion of the Swedish furniture giant's retail footprint in India. The store will be located on the ground floor of the mall, occupying 37,259 sq ft of space. The lease agreement, registered on October 15, 2025, is for a term of 4 years and 11 months, with a starting monthly rental of ₹38.11 lakh. This translates to approximately ₹102 per sq. ft. per month, which is considered a competitive rate for prime retail real estate in Pune's Viman Nagar area.
The licensee is IKEA India Pvt. Ltd., and the licensor is Vamona Developers Pvt. Ltd., part of the Phoenix Mills Group. The total agreement value amounts to ₹3.06 crore. The store is expected to open in early 2026 and will be IKEA's first mall-based outlet in Pune. It will complement IKEA's existing megastore in Navi Mumbai and urban format stores in Mumbai and Bengaluru.
IKEA launched its e-commerce presence in Pune in January 2020, allowing customers to access the full IKEA range online before a physical store opened. A company spokesperson stated that Pune has been an important market for IKEA India, with strong customer demand. Many customers from Pune have also visited the IKEA store in Navi Mumbai. The new Pune store aims to provide a more dynamic IKEA experience through an omnichannel presence in the city.
The Pune store will follow the "city store" format, similar to IKEA's stores in Mumbai's Worli and Delhi's Pacific Mall. These city stores are smaller than the large-format outlets and offer curated product displays, digital ordering assistance, and a food and beverage section. This approach aligns with IKEA's broader omnichannel strategy, combining online convenience with offline customer engagement.
Abhishek Kiran Gupta, CEO and co-founder of CRE Matrix, noted that 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. Gupta added that Pune has emerged as a key retail destination due to its expanding affluent consumer base and increasing urban density.
IKEA first announced its entry into India's retail market in 2013 after receiving approval under India's foreign direct investment (FDI) rules. The retailer currently operates large-format stores in Hyderabad, Navi Mumbai and Bengaluru, as well as small-format city stores. IKEA also offers online deliveries across various pin codes, including Pune, in Maharashtra, Andhra Pradesh, Telangana, and Gujarat. The Ingka Group, which operates IKEA stores and shopping centers globally, is also developing large shopping malls anchored by IKEA outlets in Noida and Gurugram.
