BENGALURU: Microsoft India (R&D) has finalized one of the largest office lease agreements in Hyderabad this year, securing 264,000 sq ft in the city’s financial hub.
According to a registered lease document shared by Propstack, the tech giant has inked a new five-year lease with workspace provider Table Space Technologies, with the agreement set to commence on July 1, 2025.
The deal encompasses the third and fourth levels of the building, with a total chargeable area of 264,000 sq ft. Microsoft will pay a base monthly rent of ₹1.77 crore at a rate of ₹67 per sq ft, while the overall monthly expenditure amounts to ₹5.4 crore or ₹204 per sq ft when including common area maintenance, operating costs, capital expenditures, and management fees.
The lease agreement also features an annual rate increase of 4.8% and a security deposit of ₹42.15 crore for the 60-month lease period.
Table Space acts as the sub-lessor under a registered lease contract with Phoenix Tech Zone.
This new lease signifies a notable expansion of Microsoft’s presence in Hyderabad. The company established its India Development Centre in the city back in 1998 and has since turned India into its largest R&D hub outside the United States.
Its Gachibowli campus already functions as a center for engineering, artificial intelligence, and cloud innovation. The new facility at Phoenix Centaurus is expected to accommodate additional R&D teams and tech units.
“Major tech players continue to invest in Hyderabad due to available talent, infrastructure, and cost advantages,” stated a senior consultant in workspace real estate. “Such transactions indicate that global firms are not only consolidating but are also expanding in the city, especially in premium Grade-A spaces,” he added.
