Microsoft Leases 2.65 Lakh Sq Ft Office in Hyderabad

26 Aug 2025 CW Team

Microsoft India R&D has leased 265,000 sq ft of office space at Phoenix Centaurus in Gachibowli, Hyderabad. The sub-lease, signed with managed office space operator Tablespace Technologies, covers the 3rd and 4th floors and commenced in July 2025.

The five-year agreement involves a monthly rental of Rs 54 million, translating to Rs 204 per sq ft. The payment structure includes a base rent of Rs 67 per sq ft along with common area maintenance charges, operating expenses, capital expenses, and management fees. The deal carries an annual escalation of 4.8 per cent and a security deposit of Rs 421.5 million. Microsoft has also paid Rs 9.29 million as stamp duty and registration charges.

Tablespace Technologies holds the master lease with Phoenix Tech Zone, paying a base rent of Rs 67 per sq ft plus Rs 16.28 per sq ft in CAM charges.

The transaction highlights the growing demand in Hyderabad’s Grade-A office market, which remains one of the most resilient in India. According to Knight Frank India, the city recorded nearly 10 million sq ft of gross leasing in FY24, led largely by technology firms. Market observers noted that Microsoft’s expansion reinforces occupier confidence in Hyderabad’s infrastructure, talent pool, and competitive costs.

Microsoft continues to scale its real estate footprint across India, with major operations already established in Bengaluru, Hyderabad, Noida, and Pune.

Other Major Hyderabad Deals:

In 2024, Tata Consultancy Services leased 1.02 million sq ft in Serlingampally Mandal at a monthly rent of Rs 43 million.
In December 2024, Facebook renewed its lease for 370,000 sq ft in Hyderabad, paying a combined monthly rent of Rs 28 million.

Industry experts said such large-scale transactions signal strong absorption and rental stability in Hyderabad’s commercial real estate market despite new supply.

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