Apple Inaugurates First South Indian Retail Outlet in Bengaluru Amid Multi-Crore Lease Agreement

The tech giant Apple officially announced the launch of its maiden retail store in South India, located in Bengaluru's Phoenix Mall of Asia, on September 2, 2025. The company confirmed that customers were welcomed from 1 p.m. IST onwards, marking a significant milestone in Apple's regional expansion strategy.

Strategic Location and Lease Framework

Apple revealed that the new outlet has been strategically positioned at Phoenix Mall of Asia on Bellary Road, Byatarayanapura (Hebbal). This location represents the company's third brick-and-mortar presence in India, following the successful establishments of Apple BKC in Mumbai and Apple Saket in Delhi.

The company disclosed comprehensive lease details, indicating that the approximately 8,000 square feet store operates under a decade-long agreement effective from November 2024. Apple confirmed an annual rental commitment of ₹2.09 crore, accompanied by a security deposit of ₹1.046 crore.

Industry sources revealed that the lease incorporates escalation clauses featuring 15% rent increases every three years. Additionally, a revenue-sharing mechanism has been implemented, starting at 2% for the initial three years before rising to 2.5%, though capped at twice the annual rent amount.

Store Operations and Sustainability Focus

Apple announced that the Hebbal store employs 70 specialists representing 15 Indian states, demonstrating the company's commitment to diverse local representation. The outlet operates on 100% renewable energy while maintaining carbon-neutral status, aligning with India's growing focus on sustainable living.

The store offers Apple's complete product ecosystem, including iPhones, iPads, Macs, AirPods, Apple Watch, and accessories. Services include a Genius Bar, Business Pros consultation, Today at Apple workshops, and dedicated pick-up zones for online orders.

Cultural Integration and Local Connect

Apple emphasized its commitment to local culture through specially curated Bengaluru-themed wallpapers and Apple Music playlists celebrating regional identity. This approach reflects the company's strategy to connect with India's diverse cultural landscape.

Market Expansion Rationale

Industry analysts noted that Apple's choice of Bengaluru stems from the city's status as India's technology and innovation hub. The timing, just ahead of the anticipated iPhone 17 series launch, positions the company strategically for peak-season demand.

The expansion coincides with Apple's growing manufacturing footprint in India through partnerships with companies like Foxconn. This retail presence supports broader ecosystem development, similar to how infrastructure developments like the Pune-Bengaluru Expressway are transforming regional business landscapes.

Commercial Real Estate Impact

The Apple store launch highlights Bengaluru's emergence as a prime destination for international retail brands. This trend mirrors the broader transformation of Bangalore's commercial real estate driven by metro connectivity and infrastructure improvements.

Real estate experts suggest that such high-profile retail establishments contribute to area development and property value appreciation, similar to patterns observed in India's top property investment cities.

Future Growth Trajectory

Apple's Hebbal store represents more than a retail outlet, symbolizing deeper market penetration and operational sustainability commitment. The launch reinforces Apple's dedication to India's dynamic consumer and technology landscape, positioning the company for sustained growth in the South Indian market.

This expansion strategy aligns with broader trends of international companies investing in India's commercial real estate sector, contributing to the nation's economic growth and technological advancement.