IKEA pays ₹30L monthly rent at Pacific Mall Delhi, rising to ₹45L by year 7

IKEA's Pacific Mall Lease: ₹30 Lakh Rent in Year 1, Touching ₹45 Lakh by End of Term

IKEA entered into a nine-year lease agreement with Pacific Development Corporation  for a 14,471 sq. ft. retail space at Pacific Mall, Najafgarh Road, Delhi, at a starting monthly rent of ₹30 lakh. The deal was registered on April 9, 2025, with a security deposit of ₹4.25 crore, as per lease details shared by CRE Matrix, a data-driven real estate firm.

 

Deal details:

 

Property: Pacific Mall, Najafgarh Road

 

Area: 14,471 sq. ft.

 

Lease Tenure: 9 years

 

Starting Rent: ₹30 lakh/month (₹207 per sq. ft.)

 

Security Deposit: ₹4.25 crore

 

Handover Date: February 18, 2025

 

Fit-out/Rent-Free Period: 135 days

 

 

Lock-in Period: 8 months for the licensee

 

Escalation Structure

 

Year 1: ₹30,00,000

 

Year 2: ₹31,12,500 (+3.75%)

 

Year 3: ₹31,87,500 (+2.41%)

 

Year 4: ₹38,49,750 (+20.78%)

 

Years 5–6: ₹38,49,750 (no escalation)

 

Year 7: ₹45,42,705 (+18%)

 

Years 8–9: ₹45,42,705 (no escalation)

 

The structure allows IKEA an initial consolidation phase, followed by sharp rent hikes in years 4 and 7, taking the monthly rental commitment above ₹45 lakh in the latter half of the lease.

 

The move signals IKEA’s continued expansion into high-footfall urban retail hubs, with Pacific Mall securing a global anchor tenant that is expected to boost overall footfall and enhance its brand mix. 

IKEA has adopted a ‘One Click, 30 Minutes Away’ model for its Delhi store. Large-format stores in Bengaluru, Hyderabad, and Navi Mumbai provide the full experience, while city stores like in South Mumbai and now in West Delhi bring curated solutions and planning services to high-footfall urban locations.

 

The 15000 sq ft IKEA store in West Delhi’s Pacific Mall will have around 800 smaller ‘cash-and-carry’ products available for immediate purchase, with a total of 2,000 items on display. Customers can also order any product from IKEA’s full range, including kitchens, which will be fulfilled from its Customer Distribution Centre in Farrukhnagar.