Hyderabad Mega Real Estate Deal: Microsoft Leases Office Space For Rs 5.4 Crore /Month

In one of Hyderabad’s biggest commercial real estate deals this year, Microsoft India (R&D) Pvt Ltd has signed a fresh lease for 2.64 lakh sq ft of office space in the city, with a monthly rent of ₹5.4 crore.

According to documents accessed by Propstack, the five-year lease began in July 2025 at Phoenix Centaurus in Gachibowli, a hub near Hyderabad’s IT corridor.

The office space, spread across the 3rd and 4th floors, has reportedly been leased from Tablespace Technologies Limited, which itself has leased it from Phoenix Tech Zone. As per the agreement, the rent will rise by 4.8% annually.

Reports suggest Microsoft will pay an effective outgoing rent of ₹204 per sq ft per month, which includes rent, common area maintenance, operating and capital expenses, and management fees—amounting to a monthly outgoing of around ₹5.4 crore, backed by a security deposit of ₹42.15 crore.

Under the agreement, Microsoft’s base rent is fixed at ₹67 per sq ft per month, with additional charges of ₹16.28 per sq ft for common area maintenance, ₹39 per sq ft for operating expenses, ₹74.73 per sq ft for capital expenses, and ₹7 per sq ft as management fee.

As sub-lessor, Tablespace pays Phoenix Tech Zone a rent of ₹67 per sq ft along with ₹16.28 per sq ft towards CAM, as per the registered lease agreement.

Microsoft’s lease follows close on the heels of TCS, which last year leased 10.18 lakh sq ft of office space in Hyderabad’s financial district. The property, located at Paradigm Rajapushpa and spanning 18 floors, carries a monthly rent of ₹4.3 crore. The registration took place in April 2025, with the lease commencing on October 1, 2024.

In December, Facebook parent Meta also renewed its lease for 3.7 lakh sq ft of office space in Hyderabad for a monthly rent of ₹2.8 crore across two separate transactions. The property is located at The Skyview in Hitech City, one of the city’s prime IT corridors.