Microsoft to pay ₹5.4 crore monthly for new Hyderabad office
What's the story
Microsoft India (R&D) has signed a major office lease deal in Hyderabad, one of the biggest this year. The tech giant has leased a massive space of 264,000 square feet in the city's financial district from Table Space Technologies. The five-year lease at Phoenix Centaurus is worth ₹1.77 crore per month (₹67 per sq ft) but is estimated to go up to ₹5.4 crore after including common area maintenance, operating expenses, capital expenditure, and management fees.
Growth strategy
Microsoft's expanding footprint in Hyderabad
The lease, which marks a major expansion of Microsoft's presence in Hyderabad, also has an annual escalation clause of 4.8% and a security deposit of ₹42.15 crore for the five-year period. The company established its India Development Center in the city back in 1998 and has since grown to make India its largest R&D base outside the US. The new space at Phoenix Centaurus is likely to accommodate more R&D teams and technology units, further strengthening this footprint.
Market trend
Growing trend among tech companies
Hyderabad's talent availability, infrastructure, and cost advantage are attracting large tech companies like Microsoft. A senior workspace real estate consultant said "transactions like this indicate that global corporations are not just consolidating but also expanding in the city, especially in premium Grade-A spaces." This trend underscores Hyderabad's growing status as a preferred destination for major technology firms.