Tech Giant Finalizes Massive 2.64 Lakh Square Feet Office Deal at Gachibowli's Premium Financial District

Microsoft India (R&D) has reportedly secured one of Hyderabad's most significant commercial lease agreements for 2025, acquiring approximately 264,000 square feet of premium office space at Phoenix Centaurus in the Financial District of Gachibowli, according to industry sources. The deal, valued at ₹5.4 crore in monthly outgoings, underscores the tech giant's continued expansion strategy in India's IT capital.

Strategic Expansion in Hyderabad's Prime Location

The software major has allegedly commenced occupancy from July 2025, spanning the third and fourth floors of the prestigious Phoenix Centaurus development. This move reflects Microsoft's deepening commitment to its Hyderabad operations and data center initiatives, where the company first established its Indian development center in 1998.

Financial Structure and Terms Breakdown

Industry insiders suggest the lease agreement includes a detailed rental structure with base rent set at ₹67 per square foot monthly, alongside common area maintenance charges of ₹16.28 per square foot. Operating expenses have been calculated at ₹39 per square foot, while capital expenses account for ₹74.73 per square foot. The management fee component stands at ₹7 per square foot, sources indicate.

The agreement reportedly incorporates an annual escalation clause of 4.8 percent, with a substantial security deposit of ₹42.15 crore. This financial commitment demonstrates the scale of corporate office space investments in Hyderabad's premium commercial market.

Market Implications for Hyderabad Real Estate

Real estate analysts view this transaction as one of the largest office lease deals Hyderabad has witnessed in 2025. The agreement reflects the city's growing appeal to global technology corporations, driven by its robust infrastructure, skilled talent pool, and favorable business environment. This development aligns with broader trends in Hyderabad's commercial real estate dynamics.

The deal's magnitude suggests strong confidence in Hyderabad's position as a strategic hub for technology operations. Phoenix Centaurus, situated in Gachibowli's Financial District, represents some of the city's most sought-after Grade-A office inventory, attracting multinational corporations seeking premium workspace solutions.

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Impact on Hyderabad's Office Market Landscape

This substantial lease agreement reinforces Hyderabad's status as a preferred destination for technology companies expanding their Indian operations. The deal's scale and terms reflect the premium commanded by well-located, modern office developments in the city's established IT corridors. Market observers note that such large-scale commitments by global corporations continue to drive demand for high-quality commercial real estate across India's major cities.

The Financial District of Gachibowli has emerged as a prominent commercial hub, housing numerous multinational corporations and contributing significantly to Hyderabad's reputation as India's "Cyberabad." This latest development underscores the area's continued evolution as a premier business destination.