Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Apple is making a massive play for the Indian market by leasing a 400,000 sq. ft. office tower in Bengaluru, setting a new rental record of over INR 220 per sq. ft. per month. This annual lease, exceeding INR 1,000 crore, signifies Apple's long-term commitment to India. This expansion aligns with Apple's plan to produce 25% of all iPhones in India within a few years, potentially involving $10 billion in investments. With additional offices in Mumbai, Hyderabad, and Gurugram, and new retail stores, Apple aims to solidify its operational and manufacturing presence in India.
Tech giant Apple is making a massive play for the Indian market, signing a lease agreement for an entire office tower in Bengaluru. This move signifies a significant expansion of Apple's presence in India's IT hub and aligns with the company's ambitious plans to produce a quarter of all iPhones within the country over the next few years. Advertisement
The newly leased office space, located on Sankey Road in Bengaluru, will be Apple's second-largest facility in the city. With a sprawling 400,000 square feet, this expansion comes at a premium. Apple is reportedly agreeing to pay over INR 220 per square foot per month, setting a new record for office rental rates in Bengaluru. This translates to an annual lease agreement exceeding INR 1,000 crore, showcasing Apple's long-term commitment to the Indian market. Construction on the new facility is expected to be completed by 2025.
Apple's recent investment in Bengaluru comes on the heels of a series of strategic moves in the Indian market. In 2021, Apple signed a lease deal for another 400,000 square feet of office space in Bengaluru with the Prestige Group, at an estimated cost of INR 150 per square foot per month. This space houses employees catering to both Indian and global operations, and even features an experience center. Additionally, Apple has existing office spaces in Mumbai, Hyderabad, and Gurugram, with estimates suggesting their total office footprint in India exceeds 1 million square feet. This signifies a steady increase in Apple's investment in the Indian market over the past few years.
According to lease deed documents dated January 28, 2022, shared by Propstack, Apple India Private Limited leased ground plus 14 floors in the Minsk Square building from Prestige Estates Project Ltd. The total carpet area is 3.03 lakh square feet, and the total super built-up area is 4.10 lakh square feet. The tenure of the lease is 10 years, starting from November 28, 2022, at a rent of INR 195 per square foot per month, totaling INR 7.99 crore per month. The total car park rent payable per month is INR 58.16 lakh. Minsk Square, located in the Central Business District, commands high rentals due to low availability of Grade A space, with average rentals around INR 164 per square foot per month according to Cushman & Wakefield's MarketBeat report.
Additionally, Apple has existing office spaces in Mumbai, Hyderabad, and Gurugram, with estimates suggesting their total office footprint in India exceeds 1 million square feet. In Mumbai, Apple occupies prime office space in Bandra-Kurla Complex (BKC), known for its high-profile corporate presence. In Hyderabad, Apple has a significant presence with its development center in the WaveRock campus, a hub for various global IT companies. These strategic real estate investments highlight Apple's commitment to establishing a strong operational base across key Indian cities.
Apple's expansion is not limited to office space. The mobile giant opened its first store in India in Mumbai in April last year, leasing over 20,000 square feet of retail space over three floors in Bandra Kurla Complex at a minimum guaranteed rent of around INR 42 lakh per month. The same month, it opened its second store in Delhi's Select City Walk in Saket, reportedly paying close to INR 40 lakh a month in rent.
This significant investment in office space coincides with reports of Apple's strategic push to increase its manufacturing capabilities in India. The company reportedly aims to produce a staggering 25% of all iPhones within the country over the next 3-4 years. Analysts estimate that achieving this target could involve investments of up to $10 billion from Apple and its partners in the Indian manufacturing ecosystem. This ambitious target necessitates a robust local supplier network, allowing Apple to reduce its dependence on Chinese vendors.
To achieve this ambitious production goal, Apple is actively building its supply chain within India. Key partners like Foxconn Technology Group and Tata Electronics are ramping up their manufacturing capabilities in India. Notably, Tata Electronics is constructing a massive iPhone manufacturing facility near Bengaluru in Hosur, which is poised to be one of the largest of its kind in India. This facility, along with others being built by Foxconn, represents billions of dollars in additional investments that will further strengthen the Indian electronics manufacturing sector.
Apple's expansion in India is expected to have a positive ripple effect on the country's economy. The creation of a strong local supplier network will not only boost domestic manufacturing but also create new job opportunities across various sectors, from engineering and production to logistics and retail. Estimates suggest that Apple's manufacturing push could create tens of thousands of new jobs in India. Additionally, the increased focus on iPhone production in India could potentially lead to lower prices for Indian consumers in the long run, making iPhones more accessible to a wider audience.
Apple's decision to lease a massive office space and its focus on building a strong supply chain are clear indicators of the company's long-term commitment to the Indian market. This expansion has the potential to benefit both Apple and the Indian economy, creating a win-win situation. With construction set to begin soon, industry experts and consumers alike will be closely following the progress of this ambitious project. Apple's billion-rupee investment in office space and its strategic partnership with Indian manufacturers mark a significant turning point, and India is poised to become a major player in the global iPhone production landscape.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
