IKEA Sets Sights on Pune: First City Store to Open at Phoenix Marketcity, Viman Nagar

Home-furnishing giant IKEA has leased approximately 37,259 sq ft of space at the upscale ‎Phoenix Marketcity, Pune mall in Viman Nagar for its first physical store in the city. The lease runs for five years, with a starting monthly rent of around ₹38 lakh.

This move signals IKEA’s growing commitment to urban city-centre formats in India, amid its shift from the large peripheral-warehouse model to more accessible city-stores. The company, which entered the Indian retail market in 2013, already has large-format stores in the likes of Navi Mumbai, Bengaluru and Hyderabad, and has been operating e-commerce in Pune and Maharashtra.

Why Pune?

Pune’s emergence as an important retail hub is driven by several factors. First, the city hosts a growing affluent population with rising disposable income and urban density. According to CRE Matrix’s co-founder Abhishek Kiran Gupta, “Pune has emerged as an important retail hub … the transaction reaffirms the strength of India’s consumption-driven growth story and the attractiveness of Grade-A malls for international retailers.”

Second, Pune’s location makes it strategic: proximity to Navi Mumbai, connectivity via roads and airport to the Mumbai region, and favourable demographics for younger consumers, tech professionals and aspirational households. For IKEA, which launched e-commerce operations in Pune in 2020, the physical store becomes the natural next step.

What to Expect

The new store will occupy a compact but significant footprint, reflecting IKEA’s evolving “city-store” strategy. Rather than sprawling warehouse superstores, these formats are designed for metropolitan customers who value convenience, showroom experience and omnichannel fulfilment. IKEA’s spokesperson noted that Pune remains a priority market with strong customer demand.

Located in the Phoenix Marketcity mall, which already features premium retail brands, the store will benefit from footfall, mall amenities and urban visibility. According to publicly available information, the mall originally opened in 2011 and is one of Pune’s largest, with more than a million square feet of retail space.

Consumers can expect standard IKEA offerings — furniture, home décor, affordable solutions, and the signature self-service model. With a physical presence in Pune, the brand can better integrate local customer engagement, click-and-collect, and showroom experience alongside online services.

Broader Implications for Retail in Pune

This landmark leasing agreement underscores how international brands are increasingly viewing Pune as a prime retail destination. Grade-A malls are securing marquee tenants, and the city’s infrastructure and growth story are attracting global players. For mall owners and landlords, the deal validates the business case for high-rent urban locations.

For local consumers, IKEA’s store means more choice in home-furnishing, access to global design-led products, and a new destination for lifestyle shopping. For the retail ecosystem, it may trigger a ripple effect: other international chains may follow, competition may intensify, and mall developers may accelerate new launches or upgrades.

Takeaways

• IKEA’s lease in Pune signals the brand’s shift to city-centre store formats and its confidence in Pune as a growth market.
• The deal highlights Pune’s emergence as a key retail hub in India, supported by demographic, economic and infrastructural drivers.
• For shoppers in Pune, the physical store augments online access and offers a more immersive brand experience.
• For retail property markets and malls, the deal reinforces the premium value of central-city locations in tier-1/2 cities.
• As IKEA prepares to open doors in Viman Nagar, Pune residents will soon experience the global home-furnishing giant in their city — and for the local retail scene, the arrival marks an exciting milestone.