Microsoft India R&D has completed one of the largest recent office leasing deals in Hyderabad, securing 2.64 lakh square feet at Phoenix Centaurus in Gachibowli. The five-year lease, effective from July 2025, was finalized with managed workspace operator Table Space Technologies, according to documents obtained by Propstack.
Details of the Lease
The leased space covers the third and fourth floors of the building. Microsoft will pay a base rent of Rs 1.77 crore per month, which works out to Rs 67 per square foot. When common area maintenance, operating costs, capital expenses, and management fees are included, the total monthly expenditure comes to roughly Rs 5.4 crore, or Rs 204 per square foot.
The agreement also specifies a 4.8 percent annual escalation and requires a security deposit of Rs 42.15 crore. Additionally, the company has paid about Rs 93 lakh in stamp duty and registration fees.
Sub-Leasing Structure
Table Space Technologies, the sub-lessor in this deal, leases the premises from Phoenix Tech Zone at a base rent of Rs 67 per square foot, along with Rs 16.28 per square foot in monthly common area charges.
Hyderabad’s Office Market Momentum
Hyderabad continues to be one of India’s most resilient office markets, driven by strong demand from technology companies, financial services firms, and global capability centers. According to Knight Frank India, the city recorded gross absorption of nearly 10 million square feet in 2024, with technology majors leading the leasing activity.
