Microsoft India R&D has signed a five-year lease for 2.65 lakh sq ft of office space at Phoenix Centaurus in Gachibowli, Hyderabad. The leased space covers the 3rd and 4th floors, and the deal, executed with Tablespace Technologies, comes at a monthly rent of ₹5.4 crore, translating to ₹204 per sq ft. The sub-lease began in July 2025. The payment includes a base rent of ₹67 per sq ft, with additional charges for common area maintenance (CAM), operating and capital expenses, and management fees. The agreement also includes a 4.8% annual rent escalation and a security deposit of ₹42.15 crore. Microsoft paid ₹92.94 lakh as stamp duty and registration fees.
Tablespace Technologies, a managed office provider, sub-leased the space to Microsoft. It originally leased it from Phoenix Tech Zone with a base rent of ₹67 per sq ft and CAM charges of ₹16.28 per sq ft.
Hyderabad continues to attract major tech firms, supported by robust infrastructure, talent pool, and competitive costs. This deal adds momentum to the city’s Grade-A office market, which saw nearly 10 million sq ft of leasing in FY24, per Knight Frank India.
