Microsoft has signed one of the biggest office lease agreements in Hyderabad, taking up 264,000 sq ft in the city’s financial district. According to lease documents shared by Propstack, the tech giant entered into a new five-year agreement with managed workspace operator Table Space Technologies, starting July 1, 2025. Table Space, which has a lease agreement with Phoenix Tech Zone, is acting as the sub-lessor for Microsoft. The space covers the third and fourth floors of the Phoenix Centaurus building.
Microsoft office space in Hyderabad: Lease terms
Microsoft will pay a base rent of Rs 1.77 crore per month at Rs 67 per sq ft. Including maintenance, operating expenses, and other charges, the total monthly cost works out to Rs 5.4 crore or Rs 204 per sq ft. The deal also carries an annual rent increase of 4.8% and a security deposit of Rs 42.15 crore.
The new lease adds to Microsoft’s already large presence in Hyderabad. The company set up its India Development Centre in the city in 1998, which has since grown into its biggest R&D base outside the US. Its Gachibowli campus currently focuses on engineering, artificial intelligence, and cloud projects.
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.
India exciting market for AI, tech: Microsoft India President
In an interview with news agency PTI, Microsoft India President Puneet Chandok called India as “one of the most exciting markets in the world for technology and AI”. Commenting on the global trade and tariff scenario, he said “We're a multinational company. We operate in pretty much most countries in the world.”
He added, “We believe in economic ties that drive growth across the world. We're committed to India more than ever, given the $3 billion investment, training 10 million people in the country, building institutions in India that are truly frontier firms.”
Microsoft office space in Hyderabad: Lease terms
Microsoft will pay a base rent of Rs 1.77 crore per month at Rs 67 per sq ft. Including maintenance, operating expenses, and other charges, the total monthly cost works out to Rs 5.4 crore or Rs 204 per sq ft. The deal also carries an annual rent increase of 4.8% and a security deposit of Rs 42.15 crore.
The new lease adds to Microsoft’s already large presence in Hyderabad. The company set up its India Development Centre in the city in 1998, which has since grown into its biggest R&D base outside the US. Its Gachibowli campus currently focuses on engineering, artificial intelligence, and cloud projects.
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.
India exciting market for AI, tech: Microsoft India President
In an interview with news agency PTI, Microsoft India President Puneet Chandok called India as “one of the most exciting markets in the world for technology and AI”. Commenting on the global trade and tariff scenario, he said “We're a multinational company. We operate in pretty much most countries in the world.”
He added, “We believe in economic ties that drive growth across the world. We're committed to India more than ever, given the $3 billion investment, training 10 million people in the country, building institutions in India that are truly frontier firms.”
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