When the Indian government passed new legislation permitting foreign organisations to sell directly into the Indian market, Apple began to open its own retail stores in that country. At the time of writing, there were five new apple retail stores located in Mumbai, Delhi, Pune, Bengaluru and Noida (as of April 2023).
In most cases, Apple will sign a long-term lease with landlords (approximately 10 – 11 years) which will include periodic in-rent increases of varying percentages (e.g. revenue-share agreements).
Below we provide the rent paid by location for each of the (5) new apple stores:
1. Apple BKC, Mumbai (Bandra Kurla Complex):
Approximately ₹48.19 lakh per month. The initial apple store within India and thus the company’s flagship store. This lease is likely to be the highest cost foreign retail lease in india.
2. Apple Saket New Delhi (Select City Walk Mall):
Approximately ₹40.0 lakh per month. The size of this store is very similar to the flagship retail stores. This store is located within one of the finest malls in New Delh.
3. Apple Noida (DLF Mall of India):
11-year lease with first year rent waived. A monthly rent of approximately ₹45.3 Lakh (approximately ₹5.4 crore per year). Total rent will be approximately ₹65 crore (excluding escalations and services fees).
4. Apple Phoenix Mall of Asia — Bengaluru (Hebbal)
The yearly rental cost is about 2.09 crore rupees (each month 17.4 lakh rupees). Lease term is roughly 10 years; periodic increases in rent; and sharing revenues with the mall are some of the lease terms.
- The new store location will be in Borivali, within the sky city mall in Mumbai.
- The annual rent is 2 crore rupees (16.7 lakh/month), and will cover 12,616 square feet.
- This will be Apple’s second location in Mumbai, and the sixth for the company overall in India, completing additional metro presence.
Quick Rent Summary:
Store Location Approx. Monthly Rent Lease Tenure
- Mumbai – BKC ₹48.19 lakh ~5–10 yrs
- Delhi – Saket ₹40 lakh ~10 yrs
- Noida – DLF Mall ₹45.3 lakh 11 yrs
- Bengaluru – Phoenix Mall ₹17.4 lakh ~10 yrs
- Mumbai – Borivali (upcoming) ₹16.7 lakh ~11 yrs
Figures are approximations based upon reported leasing documents and real estate numbers.
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What This Means to Apple?
- High-profile retail strategy: Apple is paying premium rents in prime shopping malls and commercial corridors to create flagship retail experiences (not just another retail space for sales only).
- Long-term vision: Apple is signing long-term leases (10-11 years) with many of them having escalators (increases in rent) approximately every two or three years.
- Revenue sharing and escalators: In cities like Bangalore, Apple’s lease deals contain a revenue share component with the landlord (approximately 2% to start) and 15% rent escalators every three years, which aligns Apple and the landlord’s incentives to grow together.
Why this is important?
These rental figures demonstrate that Apple is willing to pay tens of crores of Indian currency per year just for retail space in India, which demonstrates the importance of India as both a high-growth retail market and a manufacturing hub for Apple’s global supply chain.
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