Spanish fashion brand Zara closed its Mumbai flagship store, located in the over 100-year-old heritage Ismail building at Hutatma Chowk, South Mumbai. The five-storey store opened in May 2017.
According to a registration document provided by Propstack, the tenure for the lease was for 21 years. It was registered on April 1, 2016.
Purple Style Labs, the new tenant
Luxury fashion brand Purple Style Labs has now leased 60,000 sq ft of retail space in the same iconic building for an annual rent of ₹36 crore, securing a five-year lease, as per property registration documents obtained by Propstack.com.
According to property registration documents, the new tenant has taken the space on a five-year lease. The rent for five years works out to be ₹206 crore. ₹10 lakh is the daily rent, the Hindustan Times reported while citing the documents.
The monthly rent for the store is ₹3 crore, which translates to ₹36 crore annual rent for the first year. The annual rent for the second year goes up to ₹39 crore, for the third year to ₹42 crore, for the fourth year to ₹43.8 crore, and for the fifth year to ₹45.6 crore, the documents show.
The deposit for the transaction is ₹18 crore, as shown in the documents. The transaction was registered on December 23, 2025, for which a stamp duty of over ₹53 lakh and registration fees of ₹1,000 were paid.
Purple Style Labs, founded by Abhishek Agarwal in 2015, retails high-end designer brands under Pernia’s Pop-Up Shop brand.
Why did Zara shut iconic store in Mumbai?
Zara gave no specific reason for the closure. However, a notice outside its store stated, “This Zara store will cease operations after the end of business on 23rd February. We will continue to assist you at our Zara stores in Mumbai and at Zara.com/in,” the new Indian Express reported.
Meanwhile, high rental expense is said to be the main reason behind Zara’s decision to close the store. Business Standard cited a source familiar with the matter as saying that the store’s sales were not able to keep up with the high rentals.
High rentals
Reports suggested that the monthly rent for Zara’s five-storey store in Mumbai was ₹2.25 crore, with a deposit of ₹13.5 crore.
The New Indian Express cited details sourced from real estate data analytics platform CRE Matrix as stating that the initial five months were free of rent and on completing three years of the 21-year lease tenure, the rent would go up 5 percent per annum.
As of now, Zara was reportedly paying about ₹36 crore a year, which translates to ₹9.86 lakh a day, the report added.
According to Trent’s FY24 annual report, Zara has a total of 23 stores across 12 cities and the fashion brand saw its total income at ₹2,774.64 crore against ₹2,562.50 crore in the previous financial year.
