Ikea Expands Reach: Entering Pune Market with New Lease

Swedish furniture retail giant Ikea is poised to make its debut in the Pune market. The company has signed an agreement to lease a 37,529 sq ft space in the Phoenix Marketcity mall, Lohegaon, according to documents accessed by real estate data analytics firm CRE Matrix.

The Pune location marks an important expansion for Ikea in India, a market the company entered with its first store in Hyderabad in 2018. The lease from Vamona Developers will last for a tenure of 59 months, with an initial monthly rent of Rs 38 lakh, escalating to Rs 42.70 lakh from the fourth year onwards.

This new location will be situated on the ground floor of the mall, run by Phoenix Mills, further establishing Ikea's physical presence in key Indian cities. Currently, Ikea operates in multiple cities including Navi Mumbai, Bengaluru, Indore, and Kolkata, utilizing both large and smaller store formats to reach its consumer base.