Swedish home-furnishing giant IKEA India Private is understood to have leased a 37,259 square feet ground-floor retail unit (Unit G-01) at Phoenix Marketcity, Viman Nagar (Lohegaon) from Vamona Developers Private, according to transaction data accessed from real-estate analytics firm CRE Matrix. The registered agreement — dated October 15, 2025 — shows an agreement value of ₹3.06 crore, stamp duty of ₹6.27 lakh, and a starting monthly rent of ₹38.12 lakh for a lease period of 4 years 11 months, claims CRE Matrix.
The deal is notable for Pune’s retail landscape because it brings a large national/international retail brand into a prime mall location at a time when mall leasing activity in Pune is seeing renewed momentum. Pune’s malls accounted for a dominant share of retail leasing in recent quarters, and the city recorded healthy mall leasing volumes in 2025 — trends tracked by market researchers and brokerage reports.
What does the deal signal for Pune retail and commercial real estate
Validation of mall-led retail recovery: The IKEA lease — a marquee brand taking a ground-floor, high-visibility mall unit — reinforces a recovery in mall demand led by department stores, fashion and entertainment anchors. Recent market intelligence shows malls continuing to capture the lion’s share of retail leasing in Pune, helping grade-A mall vacancies tighten. That makes the Viman Nagar submarket more attractive for both retailers and landlords.
Also Read: IKEA’s new ‘barn’ format may reshape retail in India with 100-store rollout
IKEA’s small-format, urban push: The lease aligns with IKEA India’s recent strategy of adding smaller city-format outlets to complement large-format stores and e-commerce — a play that increases urban reach without the costs of a sprawling warehouse outlet. Smaller city stores and mall placements allow IKEA to offer curated assortments and city-convenience propositions that appeal to urban buyers. For landlords, that creates an opportunity to monetise prime mall frontage with strong consumer pull.
Boost to rental yield expectations in prime micro-markets: A headline rental figure like ₹38.11 lakh per month for a ground-floor retail unit — particularly if structured with CPI-linked escalations or turnover rent components — lifts comparable benchmarks in the submarket. This helps landlords justify investment into asset upgrades and mall experience enhancements, which in turn supports broader investor interest in Pune retail assets.
Spillover into office/consumer services demand: Strong retail anchors tend to catalyse ancillary commercial activity — F&B, last-mile logistics outlets, and corporate satellite offices — around mall precincts. Pune’s commercial leasing was already buoyant in H1–H2 2025, supported by GCC and IT expansion, and stronger retail footfall will further support mixed-use development economics in micro-markets such as Viman Nagar and Kharadi.
Also Read: IKEA enters Delhi-NCR with online deliveries and pop-up store amid mounting losses
Pune’s broader real-estate picture through 2025 has been one of robust housing sales and rising commercial leasing. Independent market reports show strong housing sales growth and sizeable office leasing volumes — driven by technology, GCC expansions and flexible workspace operators — which together underpin demand for modern retail formats and experience-led malls. Analysts expect 12–24 months of continued leasing momentum, with landlords and developers focusing on pre-committed quality supply and placemaking to capture consumer demand.
For investors, the IKEA lease is a timely reminder that premium retail assets in well-connected micro-markets can still command strong rental flows and resilient footfall — useful when underwriting yield compression in core assets or pricing new mall supply. For occupiers and retailers, it underlines the commercial logic of city-format presence in fast-growing Tier-2/edge-metro nodes where disposable incomes and organised retail penetration are rising.
First Published:Â Oct 24, 2025 10:35 PM IST
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