Highlighting the city’s tech hub status, Hyderabad lands one of its biggest office deals as Microsoft India (R&D) secures 24,526.40 sq metre in Phoenix Centaurus.
Microsoft India (R&D) has finalised a major office lease in Hyderabad, securing almost 24,526.40 square metres at Phoenix Centaurus for an effective rent of ₹54 million a month. This comes after the company announced a massive India expansion, pledging $3 billion earlier this year.
According to lease documents accessed by Propstack, the agreement with Tablespace Technologies Limited commenced in July 2025 and is scheduled to run for five years. The office space is situated across the third and fourth floors of the building, located in Gachibowli, near Hyderabad’s IT corridor.
This area is already known hub for semiconductors, cloud computing, and AI research.
The terms include an annual rent escalation of 4.8%. Microsoft has provided a security deposit of ₹421.5 million. The company will pay an average outgoing rent of ₹204 per sq ft each month. This figure includes rent, common area maintenance, operating costs, capital expenses, and management fees.
The breakdown shows a base rent of ₹67 per sq ft per month. Added to this are ₹16.28 for common area maintenance, ₹39 for operating expenses, ₹74.73 for capital charges, and ₹7 as management fees.
Tablespace, which subleases the space to Microsoft, holds the primary lease from Phoenix Tech Zone. Its agreement with the developer reflects the same base rent of ₹67 per sq ft and ₹16.28 for maintenance, but without the additional charges applied to the sub-lease.
According to a report by Hindustan Times, with this deal, Microsoft has further strengthened its presence in Hyderabad, where it already operates one of its largest campuses outside the United States.
However, Microsoft and Tabletop are yet to provide their statement on this matter.
