In a significant development for the Indian retail sector, Apple India has secured 8,000 square feet of premium retail space at the upscale Phoenix Mall of Asia in North Bengaluru. This lease deal, valued at ₹2.09 crore annually, marks a key step in Apple’s growing presence in India’s premium retail market. The retail outlet, expected to be Apple’s third in India, will join the company’s existing stores in Mumbai and Delhi.
As Apple continues to invest in India’s rapidly expanding consumer market, the new store is expected to benefit from the surge in real estate activity in North Bengaluru, driven by the near completion of Foxconn’s iPhone manufacturing facility in Devanahalli. This new venture not only highlights Apple’s commitment to the Indian market but also signals a growing trend in commercial real estate, with rising demand for both retail and office spaces in Bengaluru.
Key Details of Apple India’s Lease Deal
1. Lease Agreement Overview:
- Retail Space: 7,997.8 square feet
- Location: Phoenix Mall of Asia, North Bengaluru
- Annual Rent: ₹2.09 crore
- Lease Tenure: 10 years
- Lease Commencement: November 8, 2024 (Rent charged from August 8, 2025)
- Landlord: Sparkle One Mall Developers Private Limited
Apple’s new lease agreement for the retail space in Phoenix Mall of Asia comes with a structured financial commitment. The lease will span 10 years, with an escalation clause of 15% in both rent and security deposit every three years. This arrangement ensures a gradual increase in rent in line with market trends.
2. Additional Financial Components:
- Security Deposit: ₹1.046 crore
- Revenue Share: 2% for the first 36 months and 2.5% thereafter, capped at twice the yearly minimum guaranteed rent.
This revenue-sharing component is part of the lease terms, highlighting Apple’s innovative approach to aligning its commercial interests with mall operators. This strategy also allows Apple to benefit from the growing foot traffic expected at the new store in one of Bengaluru’s premier malls.
3. A New Retail Hub in Bengaluru
The new retail space marks Apple India’s continued commitment to expanding its footprint in India. With its first stores in Mumbai and Delhi already proving successful, Bengaluru’s Phoenix Mall of Asia will soon become home to Apple’s third premium retail outlet. The new store is poised to cater to Bengaluru’s tech-savvy, premium consumer base, further solidifying Apple’s position as a leading global brand in India.
Impact of Foxconn Facility on North Bengaluru Real Estate
The upcoming Foxconn facility in Devanahalli, Bengaluru, is driving a surge in real estate activity in the northern part of the city. As Foxconn prepares to commence operations in the June quarter, real estate experts are witnessing an increase in demand for both residential and commercial properties in Devanahalli and surrounding areas.
Key Trends in North Bengaluru:
- Rising Property Values: Land prices in Devanahalli have appreciated by 30–35% due to Foxconn’s entry.
- Development Focus: Developers are now emphasizing proximity to the Foxconn facility as a key selling point, making properties in the area more attractive to investors.
Ashish Sharma, City Head of Bengaluru at ANAROCK Group, commented:
“There has been significant land price appreciation in Devanahalli. Since Foxconn’s entry, property rates have surged by at least 30–35%.”
The Foxconn facility has not only created job opportunities but has also sparked increased commercial activity, making it a prime location for both residential and retail developments.
Apple India’s Record Rental Deals
Apple’s recent lease agreements reflect its growing investment in India’s real estate market. Notably, in December 2023, Apple India leased 6,526 square feet of space in Bandra Kurla Complex (BKC), Mumbai, at a record rental rate of ₹738 per square foot. This deal was part of Apple’s expansion strategy in India’s key commercial hubs.
In addition to its retail expansions, Apple India also leased 1.16 lakh square feet of space on Bengaluru’s Cubbon Road in 2023, for ₹2.43 crore rent per month, further underscoring the company’s long-term commitment to the Indian market.
Summary Table: Key Facts
| Project Detail | Information |
|---|---|
| Retail Space Leased | 7,997.8 sq ft |
| Location | Phoenix Mall of Asia, North Bengaluru |
| Annual Rent | ₹2.09 crore |
| Lease Term | 10 years |
| Security Deposit | ₹1.046 crore |
| Lease Commencement | November 8, 2024 (Rent starts August 8, 2025) |
| Revenue Share | 2% for first 36 months, 2.5% thereafter (capped) |
FAQ Section:
Q1: Where is Apple India’s new retail store located?
Apple India’s new retail store will be located in the Phoenix Mall of Asia, North Bengaluru.
Q2: What is the rent Apple India is paying for the new store?
Apple India is paying an annual rent of ₹2.09 crore for the retail space.
Q3: What is the lease tenure for Apple India’s new retail space?
The lease tenure is 10 years, with rent charges starting on August 8, 2025.
Q4: How does the lease agreement include revenue-sharing terms?
The lease includes a revenue-sharing component of 2% for the first 36 months and 2.5% thereafter, with payments capped at twice the applicable yearly minimum guaranteed rent.
Q5: How is the Foxconn facility influencing North Bengaluru’s real estate market?
Foxconn’s upcoming iPhone manufacturing facility in Devanahalli is driving significant demand for residential and commercial properties in North Bengaluru, with land prices appreciating by 30–35%.