Microsoft Expands in Hyderabad with 2.65-Lakh Sq Ft Lease for Rs 5.4 Crore Monthly Rent
Microsoft India R&D has leased 2.65-lakh sq ft space at Phoenix Centaurus in Gachibowli, Hyderabad, for Rs 5.4 crore monthly rent. The deal reflects the tech giant's confidence in the city's robust office market and talent pool.
MicrosoftHyderabadReal EstateOffice LeasingTech IndustryReal Estate NewsAug 25, 2025
The sub-lease started from July 2025, and per square feet, the monthly rental for the deal translates to Rs 204, as per the documents. According to lease documents, the overall 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 agreement includes an annual escalation of 4.8 percent and a security deposit of Rs 42.15 crore.
Tablespace Technologies, a managed office space operator, is the sub-lessor in this transaction. The company itself has a registered 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 tech giant has paid Rs 92.94 lakh as stamp duty and registration charges towards the deal.
There was no immediate response from the stakeholders involved in the transaction. The copy will be updated after receiving a response.
Hyderabad has emerged as one of the most resilient office markets in India, drawing strong demand from technology, financial services, and global capability centres (GCCs). According to Knight Frank India, the city saw gross leasing of nearly 10 million sq ft in FY24, with tech majors accounting for the bulk of activity. Market observers say that Microsoft’s expansion adds to the momentum. Such big-ticket leases reflect occupiers’ confidence in Hyderabad’s infrastructure, talent availability, and competitive costs, as large multinationals continue to view Hyderabad as a scalable market.
Industry experts said that deals of this nature highlight the strong absorption pipeline that will support rental stability despite significant supply. Microsoft has been steadily expanding its real estate footprint in India. The company already has major operations across Bengaluru, Hyderabad, Noida, and Pune.
In 2024, Tata Consultancy Services (TCS) leased a large office space in Hyderabad's financial district. The company had rented 10.18 lakh square feet in the Serlingampally Mandal for a monthly rent of Rs 4.3 crore. Similarly, in December 2024, Facebook renewed the lease for its Hyderabad office space, which totals 3.7 lakh square feet. The renewal was completed in two separate transactions for a combined monthly rent of Rs 2.8 crore.
Frequently Asked Questions
What is the total leased area by Microsoft in Hyderabad?
Microsoft has leased 2.65 lakh square feet of space at Phoenix Centaurus in Gachibowli, Hyderabad.
What is the monthly rent for the leased space?
The monthly rent for the leased space is Rs 5.4 crore.
When did the sub-lease agreement start?
The sub-lease agreement started from July 2025.
Who is the sub-lessor in the transaction?
Tablespace Technologies, a managed office space operator, is the sub-lessor in the transaction.
What is the annual escalation rate in the lease agreement?
The annual escalation rate in the lease agreement is 4.8 percent.
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