The deal covers the third and fourth floors of the Phoenix Centaurus, with a chargeable area of 264,000 sq ft. The deal also covers an annual escalation of 4.8% and a security deposit of Rs 42.15 crore for a 60-month lease.
Microsoft is set to expand its foothold in Hyderabad as it leased 264000 sq ft in the city’s financial district. The tech giant has entered one of Hyderabad’s largest office deals, with a five-year lease with managed workspace operator Table Space Technologies. It has rented an office at Phoenix Centaurus with a monthly rent of Rs 1.77 crore, with the contract commencing on July 1, 2025.
Microsoft leases new office in Hyderabad
The document mentioned that Microsoft will pay a base monthly rent of Rs 1.77 crore at ₹67 per sq ft, while its total outgoing cost works out to Rs 5.4 crore per month or Rs 204 per sq ft, once common area maintenance, operating expenses, capital expenditure and management fees are factored in, the document mentioned. The deal covers the third and fourth floors of the building, with a chargeable area of 264,000 sq ft. The deal also covers an annual escalation of 4.8% and a security deposit of Rs 42.15 crore for a 60-month lease.
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Microsoft first set up its India Development Centre in Hyderabad in 1998. Since then, it has expanded its footprint by setting up its largest R&D base in India. Its Gachibowli campus serves as a hub for engineering, artificial intelligence, and cloud innovation. The new space at Phoenix Centaurus will likely house additional R&D teams and technology units.
Hyderabad is emerging global hub
A senior workspace real estate consultant said, “Large tech occupiers continue to bet on Hyderabad due to its talent availability, infrastructure and cost advantage.” He added, “Transactions like this indicate that global corporations are not just consolidating but also expanding in the city, especially in premium Grade-A spaces,” according to Economic Times.
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Meanwhile, Hyderabad has emerged to be an attractive hub for major tech companies like Microsoft, courtesy its abundant talent pool, robust infrastructure, and cost advantages. Such big deals, like with Microsoft, show how global corporations are not only solidifying their presence but also expanding in the city, particularly in premium Grade-A spaces.
