Apple Leases Nearly 8,000 Sq Ft Retail Space in Bengaluru Amid Foxconn Facility Completion

Apple India has signed a significant lease deal for retail space in North Bengaluru's Phoenix Mall of Asia, marking a notable expansion in the tech giant's presence in India’s premium retail sector. According to documents reviewed by Propstack, Apple India has leased 7,997.8 square feet of retail space at an annual rent close to ₹2 crore. The lease is set for 10 years, starting November 8, 2024, with rent payments commencing from August 8, 2025. The landlord for the property is Sparkle One Mall Developers Private Limited.

The lease agreement includes a clause for a 15% increase in rent and security deposit every three years. Apple has already paid a security deposit of ₹1.046 crore. Additionally, the lease has a revenue-sharing arrangement: Apple will pay approximately 2% of its revenue for the first 36 months, rising to 2.5% thereafter. However, these payments are capped at twice the yearly minimum guaranteed rent.

This new retail space will further strengthen Apple’s footprint in India, aligning with the broader trend of the company increasing its investment in the country’s growing premium retail market. This expansion coincides with the near completion of Foxconn’s manufacturing facility in Bengaluru, which is expected to commence operations shortly.

Background on Apple’s Retail Expansion in India

Apple India’s leasing activity in India has been notable in recent years. Last December, Apple leased 6,526 sq ft in Mumbai’s Bandra Kurla Complex (BKC) at one of the highest commercial rents in the country, ₹738 per square foot monthly. This lease was for a five-year term in the Maker Maxity-5 building. The monthly rent was ₹48.19 lakh, with a security deposit of ₹4.33 crore.

Earlier reports from 2023 highlighted that Apple had leased over 20,000 sq ft spread across three floors in a mall located in Mumbai’s BKC area, with a minimum monthly guaranteed rent of around ₹42 lakh. In Bengaluru, Apple also leased commercial space of 1.16 lakh sq ft on Cubbon Road for 10 years at a monthly rent of ₹2.43 crore.

Foxconn’s Facility Impact on Bengaluru’s Real Estate

Foxconn’s iPhone manufacturing plant in Devanahalli, on the outskirts of Bengaluru, is nearing completion and is expected to begin operations in the June quarter of 2025. This facility is driving significant real estate activity in the northern corridor of Bengaluru.

According to Ashish Sharma, City Head – Bengaluru at ANAROCK Group, since Foxconn’s entry, property prices in Devanahalli have surged by at least 30 to 35%. This surge is due to increased employment opportunities and improvements in infrastructure, which are attracting residential and commercial development.

Real estate developers are marketing properties with a focus on proximity to Foxconn’s facility, highlighting phrases like “just 10 minutes from Foxconn” to attract investors. This marketing strategy has gained traction among buyers and investors eager to benefit from the expanding ecosystem linked to Foxconn’s presence.

Apple India’s lease of nearly 8,000 sq ft at Phoenix Mall of Asia represents a key move in its retail strategy, coinciding with the completion of Foxconn’s manufacturing plant in Bengaluru. The development is expected to boost Apple’s retail visibility in the city, complementing the company’s ongoing investments in premium retail spaces across major Indian cities.

Meanwhile, Foxconn’s manufacturing facility continues to reshape real estate dynamics in North Bengaluru, encouraging a wave of new commercial and residential projects in the area. This confluence of retail expansion and manufacturing investment signals a growing confidence in Bengaluru’s role as a critical hub for technology and commerce in India.