Microsoft Signs Major Hyderabad Office Lease Worth ₹5.4 Crore a Month
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By L. Sadriwala
- August 27, 2025
Hyderabad Real Estate Update – Tech giant Microsoft India (R&D) Pvt Ltd has struck one of the city’s biggest commercial leasing deals of 2025 by securing 2.64 lakh sq ft of premium office space at Phoenix Centaurus, Gachibowli. The five-year lease, which commenced in July 2025, will see Microsoft shelling out ₹5.4 crore in monthly rent, reflecting the rising demand for high-grade office spaces in Hyderabad’s IT corridor.
Deal Structure and Costs
According to documents accessed by Propstack, Microsoft leased the 3rd and 4th floors of the building from Tablespace Technologies Limited, which itself leases from Phoenix Tech Zone.
The rent is structured at an effective outgoing of ₹204 per sq ft per month, which includes:
- Base Rent – ₹67 per sq ft
- Common Area Maintenance (CAM) – ₹16.28 per sq ft
- Operating Expenses – ₹39 per sq ft
- Capital Expenses – ₹74.73 per sq ft
- Management Fee – ₹7 per sq ft
This brings the monthly rent to ₹5.4 crore, backed by a hefty ₹42.15 crore security deposit. The lease also includes an annual escalation of 4.8%.
Hyderabad – The Hotspot for Big Tech
Hyderabad continues to attract global tech firms, with Gachibowli and Hitech City cementing their place as India’s leading IT and business hubs.
- In 2024, TCS leased 10.18 lakh sq ft of office space in Paradigm Rajapushpa, Serlingampally, at a monthly rent of ₹4.3 crore. The 15-year lease includes a steep 12% annual hike.
- In December 2024, Meta (Facebook) renewed its lease for 3.7 lakh sq ft at The Skyview, Hitech City, paying ₹2.8 crore monthly rent.
What This Means for Hyderabad’s Realty Market
Microsoft’s deal signals strong confidence in Hyderabad’s commercial property market, which has been witnessing record demand from tech majors. With competitive rentals, modern infrastructure, and a thriving talent ecosystem, the city is fast becoming the preferred choice for global corporations expanding their India operations.
L. Sadriwala, the Editor-in-Chief at Housiey, is a seasoned writer whose professional journey in content creation began in 2015. With a background rooted in a family of real estate developers, her transition into real estate writing was a natural evolution, bringing together her storytelling expertise and deep industry understanding.
Over the years, she has authored impactful blogs across diverse niches such as food, travel, and lifestyle, before establishing her reputation as a trusted voice in Indian real estate. Today, her work stands out for its clarity, accuracy, and ability to simplify complex property concepts for readers.
At Housiey, every article crafted by L. Sadriwala reflects thorough research, verified facts, and a reader-first approach. From decoding housing policies and trends to offering in-depth builder reviews and project insights, her mission is clear: to empower homebuyers and investors with the knowledge they need to make confident property decisions.
Her writing not only informs but also builds trust, making her one of the most credible editorial voices in the real estate space.
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