Bengaluru, August 19, 2025 – In a landmark move signaling its robust expansion in India, Apple India Private Limited has signed a 10-year lease for approximately 2.7 lakh square feet of premium office space in Bengaluru, valued at Rs 1,010 crore. The deal, one of the largest single-tenant office leases in the city’s commercial real estate market, underscores Apple’s growing commitment to India as a key hub for innovation, manufacturing, and retail. The office is located at Embassy Zenith, a prestigious commercial project on Sankey Road in the upscale Vasanth Nagar area, owned by Mac Charles (India) Limited, an affiliate of the Embassy Group.

Details of the Lease Agreement

According to documents accessed by real estate analytics firm Propstack, Apple will occupy the 5th to 13th floors of Embassy Zenith, covering a carpet area of 196,179 square feet and a chargeable area of 268,737 square feet. The monthly rent is set at Rs 6.31 crore, translating to Rs 235 per square foot, with an annual escalation clause of 4.5%. Over the 10-year lease term, starting April 3, 2025, Apple’s total outlay, including rent, parking, and common area maintenance (CAM) charges, will amount to Rs 1,010 crore. The agreement also includes 362 car parking spaces, and Apple has deposited a security amount of Rs 31.57 crore, along with Rs 1.5 crore in stamp duty.

Apple has expressed interest in potentially expanding its footprint within the same building by leasing an additional 121,203 square feet across the ground to fourth floors. If finalized, this would increase Apple’s total office space in Embassy Zenith to nearly 4 lakh square feet, further solidifying its presence in Bengaluru’s commercial landscape.

Strategic Expansion in India

This significant real estate deal aligns with Apple’s broader strategy to deepen its operations in India, a market that has become increasingly critical to the tech giant’s global supply chain and innovation efforts. Bengaluru, often referred to as the Silicon Valley of India, is emerging as Apple’s operational headquarters in the country. The new office is expected to accommodate over 1,200 employees and support Apple’s engineering, hardware design, software development, operations, and customer support teams. Industry experts note that this move reflects Apple’s confidence in India’s talent pool and its growing role as a global R&D hub.

Apple’s expansion in Bengaluru is part of a multi-faceted growth plan. The company has already established a strong presence in the city with a previous lease of 1.16 lakh square feet at Prestige Minsk Square on Cubbon Road in 2021, where operations commenced in 2023. Additionally, Apple is preparing to launch its third retail store in India at Phoenix Mall of Asia in North Bengaluru, following the success of its flagship stores in Mumbai and Delhi opened in 2023. The retail lease, signed in November 2024, covers 7,998 square feet for an annual rent of Rs 2.09 crore over a 10-year term, with a 15% rent escalation every three years.

Manufacturing and Retail Growth

Apple’s investment in India extends beyond office and retail spaces. The company is the largest exporter of mobile phones from India, with iPhone exports reaching Rs 1.5 lakh crore in the financial year 2024-25. A significant milestone in this journey is the recent commencement of iPhone 17 production at Foxconn’s new facility in Devanahalli, Bengaluru. Foxconn, Apple’s key manufacturing partner, has invested $2.8 billion (approximately Rs 25,000 crore) in this plant, which is now the second-largest iPhone manufacturing unit outside China. This facility, alongside Foxconn’s Chennai plant, is expected to ramp up iPhone production from 35–40 million units in 2024-25 to 60 million units this year, further strengthening India’s position in Apple’s global supply chain.

Apple’s retail strategy is also gaining momentum, with plans for four additional stores in Bengaluru and Pune. The company has leased retail spaces in Mumbai’s Oberoi Sky City Mall and Bengaluru’s Batrayanpura, reinforcing its commitment to capturing India’s vast consumer market.

Political Context and Challenges

The lease deal comes amidst scrutiny from US President Donald Trump, who has publicly criticized Apple’s expansion in India. Trump has advocated for Apple to prioritize manufacturing in the United States, threatening a 25% tariff on products imported from countries like India. At a business event in Doha, Trump reportedly told Apple CEO Tim Cook, “I had an understanding with Tim that he wouldn’t be doing this. He said he’s going to India to build plants. I said, ‘That’s okay to go to India, but you’re not going to sell into here without tariffs.’” Despite this pressure, Apple’s continued investment in India highlights its long-term vision for the region, balancing geopolitical challenges with strategic growth.

Apple’s Broader Impact in India

Beyond infrastructure, Apple is investing in India’s talent ecosystem through initiatives like the App Accelerator, which supports iOS developers with specialized guidance. The company’s Bengaluru teams contribute to multiple business verticals, including software, hardware, services, IS&T, operations, and customer support. The city’s role as a hub for Apple’s global operations is further cemented by its engineering teams in Bengaluru and Hyderabad, which drive innovation across the company’s product lines.

Raja Seetharaman, co-founder of Propstack, commented, “Apple’s 10-year commitment for prime office space in Bengaluru highlights their immense confidence in the Indian market. This investment in talent and operations runs parallel to their manufacturing scale-up for iPhones with companies like Foxconn. Together, these moves solidify India’s crucial position at the heart of Apple’s global supply chain and innovation efforts.”

Conclusion

Apple’s Rs 1,010 crore lease deal for Embassy Zenith in Bengaluru is more than a real estate transaction—it’s a strategic declaration of India’s importance to the tech giant’s global ambitions. By expanding its office footprint, ramping up manufacturing, and growing its retail presence, Apple is positioning Bengaluru as the cornerstone of its India growth story. As the company navigates international trade dynamics and invests in local talent and infrastructure, Bengaluru continues to solidify its reputation as a global tech hub, attracting the world’s most valuable companies.

Sources: Moneycontrol, Times of India, Hindustan Times, TechStory, Business Standard, NDTV, The Daily Jagran, ETRealty, ETTelecom, Goodreturns, India Today, Telangana Today, The Times of Bengal, The New Indian Express, Zeebiz, The India Daily, Times Now, VAR India