Microsoft India has inked one of Hyderabad’s biggest office space transactions of 2025, taking up 2.64 lakh sq ft at Phoenix Centaurus in Gachibowli on a five-year lease with a monthly outgoing of about ₹5.4 crore.

The deal underlines the city’s continued dominance as a preferred hub for large global technology firms, following recent mega leases by TCS and Facebook.

Documents accessed by Propstack showed that the five-year lease commenced in July 2025 at Phoenix Centaurus in Gachibowli, Hyderabad, an area near the city’s IT corridor.

The space, located on the 3rd and 4th floors, has been leased from Tablespace Technologies Limited, which in turn has leased it from Phoenix Tech Zone. According to the agreement, the rent will be increased by 4.8% annually.

Microsoft will pay an effective outgoing rent of ₹204 per sq ft per month, including rent, common area maintenance, operating and capital expenses, and management fees. This translates into a monthly outgoing of about ₹5.4 crore, backed by a security deposit of ₹42.15 crore, the document showed.

Under the agreement, Microsoft’s base rent is set at ₹67 per sq ft per month, with additional charges comprising ₹16.28 per sq ft common area maintenance, ₹39 per sq ft operating expenses, ₹74.73 per sq ft capital expenses, and a ₹7 per sq ft management fee.

Tablespace, acting as the sub-lessor, pays Phoenix Tech Zone ₹67 per sq ft rent with an additional ₹16.28 per sq ft CAM, as per its registered lease agreement.

Email queries have been sent to Microsoft and Tablespace. If a response is received, the story will be updated.

Last year, TCS leased 10.18 lakh sq ft of office space in Hyderabad’s financial district, an IT suburb in Serlingampally Mandal, for ₹4.3 crore monthly rent. The office space is located in Paradigm Rajapushpa and spans across 18 floors. The building consists of five basements, a ground and 18 office floors.

The registration took place in April 2025, and the lease commenced on October 1, 2024, according to the document. The landlords are Rajapushpa Asset Management LLP and Paradigm Corporation Private Limited. The lease tenure is for 15 years, and the rent will increase by 12% every year.

In December, Facebook renewed its lease for 3.7 lakh sq ft office space in Hyderabad for ₹2.8 crore monthly rent across two separate transactions. The office is located in The Skyview in Hitech City, one of the prime IT corridors in the city.