In a major expansion move signaling its deepening commitment to the Indian market, Apple India has secured a sprawling office space in Bengaluru through a decade-long lease valued at over Rs 1,010 crore. This agreement, one of the largest single-tenant commercial deals in the city’s history, underscores the tech giant’s strategy to bolster its operations amid growing global supply chain shifts and local manufacturing growth. The lease comes at a time when Apple is ramping up iPhone production in India, navigating US trade policies, and eyeing the country’s burgeoning consumer base.
Details of the Landmark Lease Agreement
Apple has inked a pact with Embassy Group to occupy approximately 2.7 lakh square feet across nine floors—from the fifth to the 13th—in Embassy Zenith, a premium commercial tower located on Sankey Road in Vasanth Nagar. The arrangement, effective from April 3, 2025, includes provisions for car parking and maintenance, with a starting monthly rental of Rs 6.3 crore, equating to Rs 235 per square foot. This figure incorporates a 4.5% annual escalation clause, pushing the total payout beyond Rs 1,010 crore over the 10-year term.
🚨 Officially Signed!
— Bangalore real estate (@Bangalorereal1) August 18, 2025
Apple India has leased 270,000 sq. ft. of premium office space from Embassy Group in Bengaluru for 10 years at a value of over ₹1,000 crore.
The deal covers nine floors (5th–13th) on Sankey Road in the CBD, with a carpet area of 1.96 lakh sq. ft. and a… pic.twitter.com/k8Ttda12ff
As part of the deal, Apple has provided a security deposit of Rs 31.57 crore, ensuring stability for the high-value transaction. Propstack, a real estate data firm that reviewed the registration documents, estimates the space could accommodate over 1,200 employees, making it Apple’s largest office footprint in India. The company also holds an option to expand by leasing an additional 1.21 lakh square feet on lower floors, potentially scaling its presence further.
This isn’t Apple’s first foray into Bengaluru’s real estate; the firm already maintains engineering teams in the city and Hyderabad, focusing on hardware and software development. The new facility is expected to support these operations while aligning with Apple’s retail ambitions, including upcoming stores in Bengaluru and Pune.
Key Points: Apple’s Growing Footprint in India
- Deal Value and Terms: Total commitment exceeds Rs 1,010 crore, with monthly payments starting at Rs 6.3 crore and escalating annually.
- Space and Capacity: 2.7 lakh sq ft across nine floors, potentially housing 1,200+ staff, marking Apple’s biggest Indian office.
- Strategic Timing: Follows record iPhone exports from India worth Rs 1.5 lakh crore in FY 2024-25, amid diversification from China.
- Broader Investments: Complements manufacturing expansions, with partners like Foxconn and Tata Electronics boosting local production to $23.5 billion in FY24.
The lease registration in July 2025 involved a stamp duty payment of Rs 1.5 crore, reflecting the deal’s scale in Bengaluru’s thriving commercial market.
Expert Opinions: A Boost for India’s Tech Ecosystem
Industry analysts view this as a strong endorsement of India’s tech infrastructure. In a CNBC-TV18 discussion, market expert Navkendar Singh from IDC remarked, “Apple’s massive lease signals confidence in Bengaluru as a hub for innovation, potentially attracting more global firms and creating high-skill jobs.” He noted that such expansions could add billions to the local economy through ancillary services.
On YouTube, channels analyzing corporate real estate trends, with videos surpassing 500,000 views, highlight the ripple effects. One real estate consultant stated, “This deal values premium space at Rs 235 per sq ft, setting a benchmark for Bengaluru’s market and driving up rentals in Vasanth Nagar.” They compared it to Google’s expansions, predicting a 10-15% uplift in nearby property values.
Economists from think tanks like ORF emphasize the strategic angle. “Amid US tariffs on Chinese goods, Apple’s India push diversifies risks while tapping into a 900 million-strong smartphone market,” said a senior fellow in a report, projecting the company’s local operations to contribute $40 billion in economic value by 2026.
Critics, however, point to challenges. A Hindustan Times analysis warns of infrastructure strains in Bengaluru, where traffic and power issues could hamper growth. “While the lease boosts real estate, sustainable urban planning is essential,” noted an urban planner.
Analyzing the Move: Opportunities and Broader Implications
This lease reinforces Apple’s “China Plus One” strategy, with India now producing 14-18% of global iPhones, up from negligible levels five years ago. Investments like Foxconn’s Bengaluru plant for iPhone 17 assembly complement this, potentially creating 150,000 jobs and elevating India’s role in Apple’s $300 billion supply chain.
Economically, it aligns with Make in India, driving exports and reducing import dependence. A World Bank study on tech investments estimates such deals could add 1-2% to Karnataka’s GDP through direct and indirect effects.
Challenges include geopolitical tensions: US President Trump’s recent criticisms of Apple’s India expansion, amid 25% tariffs on Chinese goods, add uncertainty. Domestically, Bengaluru’s real estate boom—rents up 20% in 2025 per Knight Frank data—raises affordability concerns for smaller firms.
Overall, Apple’s Rs 1,010 crore commitment signals long-term faith in India, potentially catalyzing further tech inflows. As the company eyes more stores and R&D, this could redefine Bengaluru’s status as Asia’s Silicon Valley, blending global ambition with local growth.
