Satya Nadella-led Microsoft leases office space in Hyderabad for Rs 5.4 crore monthly rent

Microsoft India R&D has signed one of Hyderabad’s largest recent office leasing transactions, taking 2.64 lakh square feet at Phoenix Centaurus in Gachibowli. 

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The five-year agreement, effective from July 2025, was executed with managed workspace operator Table Space Technologies, according to lease documents accessed by Propstack.

The leased premises cover the third and fourth floors of the building. Microsoft will pay a base rent of Rs 1.77 crore per month, at Rs 67 per square foot. With common area maintenance charges, operating expenses, capital costs, and management fees, the total monthly outgo rises to about Rs 5.4 crore, translating to Rs 204 per square foot.

The contract includes a 4.8 percent annual escalation and a security deposit of Rs 42.15 crore. The company also paid nearly Rs 93 lakh in stamp duty and registration fees.

Table Space, the sub-lessor in the transaction, itself leases the space from Phoenix Tech Zone at a base rent of Rs 67 per square foot, plus Rs 16.28 in monthly common area charges.

Hyderabad has emerged as one of the most resilient office markets in India, with strong leasing demand from technology firms, financial services companies, and global capability centers. Knight Frank India estimates the city recorded gross absorption of nearly 10 million square feet in calendar year 2024, led by technology majors.