Microsoft India (R&D) Pvt Ltd has leased 2.64 lakh sq ft of office space in Hyderabad, as per news reports. The agreement is one of the largest office deals recorded in the city this year. The lease was signed with managed workspace operator Tablespace Technologies and began on July 1, 2025, according to registered documents.
The new office is located at Phoenix Centaurus in Gachibowli, near Hyderabad’s IT corridor. Microsoft has taken space across the third and fourth floors of the building. The property is owned by Phoenix Tech Zone and leased by Tablespace, which has sub-leased the space to Microsoft.
As per news reports, the five-year lease sets a monthly rent of ₹5.4 crore. The agreement includes an annual increase of 4.8%. A security deposit of ₹42.15 crore has been placed. The arrangement covers rent, maintenance, operating charges, capital expenses, and management fees.
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As per news reports, Large office leases have been common in Hyderabad over the past year. Tata Consultancy Services(TCS) took up 10.18 lakh sq ft at Paradigm Rajapushpa in the financial district in October 2024, paying ₹4.3 crore monthly rent on a 15-year term. Facebook renewed its lease in December 2024 for 3.7 lakh sq ft at The Skyview in Hitech City, paying ₹2.8 crore per month.
With Microsoft’s new lease, Hyderabad continues to record high-value office transactions, adding to the city’s role as a major base for global technology companies.
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Published on: Aug 26, 2025, 11:16 AM IST
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