Apple's ₹1,333 Crore Bengaluru Lease: Decoding the Impact on India's Commercial Real Estate

When a company like Apple signs a 10 year office lease worth Rs 1,333 crore in a single building in Bengaluru, it is worth pausing on that number for a moment. This is not a company testing a market or hedging its bets. This is a decade long financial commitment in one of India's most expensive commercial addresses, made by a business that has every option available to it globally. The Apple office lease Bengaluru 2025 story is genuinely significant, not just as a corporate real estate transaction but as a signal about where Bengaluru's Grade A office Bengaluru market is heading and what it means for investors, developers, and anyone tracking India's commercial property story.

Apple has now taken up nearly 3.89 lakh sq ft of space at Embassy Zenith, a premium commercial tower on Sankey Road in Vasanth Nagar, one of Bengaluru's most sought after commercial addresses. The expansion happened in two stages. The first lease, signed in April 2025, covered floors 5 through 13, amounting to 2.68 lakh sq ft of chargeable area at a monthly rent of around Rs 6.35 crore. The second lease, which commenced in September 2025, added another 1.21 lakh sq ft spanning the ground to fourth floors at a monthly rent of Rs 2.84 crore. Combined, the Apple India real estate investment at Embassy Zenith now carries a monthly outgo of approximately Rs 9.16 crore and a cumulative 10 year rental obligation of roughly Rs 1,333 crore. The rent per sq ft is pegged at Rs 235 per month, a figure that has set a new benchmark for the Bengaluru central business district.

Embassy Zenith Bengaluru is owned by MAC Charles (India) Limited, an entity affiliated with Embassy Group, one of the most established commercial real estate developers in the country. The building sits on a 2.3 acre site that was previously home to the Le Meridien hotel, which gives you some idea of the address's pedigree. The lease terms include a security deposit of Rs 14.24 crore for the newer tranche, an annual rent escalation of 4.5 percent beginning April 2026, and 362 dedicated car parking spaces across the total occupied space. For a project like Embassy Zenith, having Apple as an anchor tenant across nearly all floors is the kind of validation that shapes the building's identity for years to come.

The Bengaluru commercial office market has been performing strongly and this deal reinforces that trajectory with hard data behind it. In the first half of 2025, Bengaluru recorded 18.2 million sq ft of gross office absorption, the highest among all top eight Indian metros. Technology companies, global capability centres, and electronics manufacturers have been the primary drivers of that activity. The Apple India expansion into nearly 4 lakh sq ft at a single address fits precisely within that pattern. Industry experts have pointed out that this transaction underscores sustained demand for premium office space Bengaluru from global technology firms even as leasing decisions globally have become more selective and cost conscious in recent years.

The office expansion does not exist in isolation. Apple's commitment to Bengaluru as a real estate address is directly connected to its deepening India manufacturing story. Foxconn, Apple's primary hardware partner, has commenced iPhone 17 production at its Devanahalli facility near Bengaluru, a plant built with an investment of approximately Rs 25,000 crore. That facility is now Foxconn's second largest iPhone manufacturing hub outside China. As Apple's supply chain in Karnataka grows, so does its need for operational, engineering, and management workforce in the city. The Embassy Zenith Apple lease deal is in many ways the office side of an India strategy that is being executed simultaneously across manufacturing, retail, and operations.

Why global tech companies are choosing Bengaluru for large office expansions comes down to a combination of talent depth, infrastructure quality in premium addresses, and a developer ecosystem that can deliver large format Grade A campuses on demand. When Apple anchors a building at Rs 235 per sq ft per month for 10 years with escalation built in, it sets a price floor that other landlords and tenants in the CBD reference. Vacancy in well located Grade A buildings near this address will tighten further. Competing developers will point to this deal as justification for similar or higher asking rents in their own projects. The ripple effect on the Bengaluru commercial real estate pricing conversation is real and measurable.

The Apple office lease Bengaluru 2025 spanning nearly 4 lakh sq ft at Embassy Zenith with a Rs 1,333 crore commitment over 10 years is one of the most significant transactions in the Bengaluru commercial office market in recent years. At Rs 235 per sq ft monthly with a 4.5 percent annual escalation, it sets a new premium office space Bengaluru benchmark. The Apple India expansion connects directly to its growing Karnataka manufacturing base, reinforcing why global tech companies are choosing Bengaluru for their largest and most long term real estate commitments in India.