Microsoft Leases 2.6 Lakh Sq Ft in Hyderabad, to Pay Rs 5.4 crore Monthly

Microsoft has signed massive lease for 264,000 sq ft in Hyderabad's Phoenix Centaurus, expanding its already significant presence. This new space will house additional R&D teams and technology units, solidifying Hyderabad's appeal.

Microsoft has leased 264,000 square feet of space in Hyderabad's financial centre, one of the largest office leasing deals in the city's history. The IT behemoth signed a new five-year contract with managed workspace provider Table Space Technologies, effective July 1, 2025, according to lease documents released by Propstack. Microsoft is being sub-leased by Table Space, which has a lease with Phoenix Tech Zone. The Phoenix Centaurus building's third and fourth floors are occupied by the area.

Details of Microsoft's Lease

At Rs 67 per square foot, Microsoft will pay a basic rent of Rs 1.77 crore per month. The whole monthly cost, including maintenance, operating costs, and other fees, comes to Rs 5.4 crore, or Rs 204 per square foot. The agreement also includes a security deposit of Rs 42.15 crore and a 4.8% yearly rent increase.

Microsoft's existing significant presence in Hyderabad is increased with the new lease. In 1998, the business established its India Development Centre in the city, which has subsequently expanded to become its largest research and development facility outside of the United States. Currently, cloud, AI, and engineering initiatives are the main emphasis of its Gachibowli site. 

The additional space at Phoenix Centaurus is expected to house more R&D teams and technology units, strengthening Microsoft’s long-term commitment to the city.

With this new lease, Microsoft has significantly increased its presence in Hyderabad and demonstrated the city's attractiveness to major IT companies because of its talent infrastructure, accessibility, and affordability.

Microsoft established its India Development Centre in the city in 1998, becoming the biggest research and development facility outside of the United States. Already, the Gachibowli campus serves as a hub for cloud, engineering, and artificial intelligence innovation.

Its site in Gachibowli already acts as a centre for cloud innovation, AI, and engineering. It is anticipated that more R&D teams and technology divisions would use the expanded area at Phoenix Centaurus. Meanwhile, the new area at Phoenix Centaurus is probably going to accommodate more R&D teams and technology divisions.