Ikea Explores 25-Acre Land Opportunities in South Delhi and Dwarka for New Store


    Share post:

    Officials from both the central and state governments have disclosed that retail giant Ikea is actively searching for suitable land parcels spanning approximately 25 acres, primarily within the South Delhi and Dwarka regions. Sources familiar with the matter have revealed that Ingka Centres, a subsidiary of the Ingka Group, which encompasses Ikea Retail and Ingka Investments, is actively engaged in scouting for real estate opportunities in the national capital, specifically targeting areas such as South Delhi and Dwarka.

    While the sources have abstained from revealing specifics about the land’s pricing presented to the Swedish retail conglomerate by the Delhi Development Authority (DDA), real estate experts estimate that the cost of acquiring a licensed or sanctioned plot within South Delhi and Dwarka could range from Rs 50 crore to Rs 75 crore per acre. A government official in the loop has affirmed that Ikea has been diligently pursuing suitable 25-acre plots within these regions.

    In their pursuit to establish a store, representatives of Ingka Centres initially approached the DDA to secure a substantial land parcel, although the initial discussions failed to yield results, as per authority insiders. Undeterred by the setback, the retailer has re-engaged with the DDA in hopes of acquiring land for their retail venture.

    The source further revealed, “Their previous attempt involved seeking a sizeable land parcel anywhere in Delhi; however, the proposed pricing did not align with their expectations. More recently, an Ikea delegation reconvened with senior DDA officials to reinitiate discussions concerning land acquisition for their store,” as per Moneycontrol.

    While DDA has requested that the Ikea Group submit a comprehensive revised proposal in written form, the submission is still pending. A decision from the DDA will be contingent upon the proposal’s submission and evaluation.

    In response to queries, Ikea issued a statement affirming, “We are actively exploring opportunities to expand our omni-channel presence in various markets across India, including Delhi NCR (National Capital Region), to provide our home furnishing solutions to a wider audience.”

    Presently operating 482 Ikea stores across 31 countries, the group has already completed the initial phase of its India expansion plan, establishing compact city stores in Mumbai, Hyderabad, Bengaluru, and Navi Mumbai. Additionally, Ikea has commenced order deliveries in Pune, Surat, and Vadodara. Furthermore, the mixed-use retail center in Gurugram is slated for operational commencement in late 2025.

    Ingka Centres is also in the process of developing a shopping center in Noida with an investment totaling Rs 5500 crore, as reported by Moneycontrol. In pursuit of this venture, Ikea procured a commercial plot measuring 48,000 square meters (approximately 11.86 acres) in Sector 51 from the Noida Authority for Rs 850 crore on February 19, 2021.

    The Ingka Group made its initial entry into India in 2018 with the inauguration of the first Ikea store in Hyderabad. Subsequently, the company unveiled two more flagship stores in Mumbai and Bengaluru, along with two city-format stores in Mumbai.

    As part of its expansion strategy, Ikea is deliberating the possibility of establishing stores in Chennai and Pune to cater to the escalating demand for its products across various Indian cities.

    At present, around 30 percent of the products available within Ikea’s Indian outlets are sourced locally. The company is actively exploring avenues to stimulate exports and is positioning India as an export hub for wooden furniture, thereby diversifying its sourcing across the nation.

    Also read: Noida Awaits IKEA’s Arrival: Site Plan Approval Pending for New Store Construction


    Please enter your comment!
    Please enter your name here

    Related Posts

    Latest posts

    Oberoi Realty Enters NCR Market with Landmark Land Purchase in Gurugram

    GURUGRAM, June 24, 2024 — Oberoi Realty, a Mumbai-based real estate developer, has entered the National Capital Region...

    Krisumi Group Announces Major Investment to Develop 1051 Luxury Units in Gurugram

     Krisumi to Develop State-of-the-Art Club with Indoor Air-Conditioned Sports Facilities, a First in NCR  Expects Revenue Realization of...

    Indian Retail Brands Embrace Omni-Channel Strategies to Boost Consumer Experiences

    The COVID-19 pandemic transformed e-commerce into a primary shopping method for Indians. Initially driven by deep discounts, e-commerce's...

    YEIDA Plot Scheme 2024: A Comprehensive Guide for Prospective Buyers

    The Yamuna Expressway Industrial Development Authority (YEIDA) has unveiled its Plot Scheme 2024, presenting a new opportunity for...