Facebook Renews Lease Agreement for Hyderabad Office with ₹2.8 Crore Rent

Facebook has renewed its lease for a 3.7 lakh sq ft office space in Hyderabad.  As per registration documents accessed via Propstack, the company will pay ₹2.8 crore monthly rent. The office is located at The Skyview in Hitech City, an area known for its strong concentration of IT companies and modern infrastructure.

The lease agreement spans a total of five years. The first transaction, finalized in December, covers 84,053 sq ft with a monthly rent of ₹65.7 lakh. The second, renewed in April, involves 2.8 lakh sq ft at a rent of ₹2.15 crore per month. In addition, Facebook has provided a security deposit of ₹16.8 crore.

The lease includes a provision for a 15% rent escalation starting January 2026, in response to the growing demand for premium office spaces in Hyderabad’s IT corridor.

Hyderabad has become a preferred destination for multinational corporations (MNCs) and local enterprises looking for high-quality office spaces. Key areas like Hitech City, Gachibowli, and Kondapur have become increasingly popular due to their infrastructure, connectivity, and proximity to residential areas.

Demand for office spaces in these zones has increased substantially in recent years. According to ANAROCK, average rents in Hitech City have risen from ₹23,000 per month in 2019 to ₹27,500 by 2023. Similarly, in Gachibowli, rents increased from ₹22,000 to ₹26,500 per month, marking a 20% rise. Kondapur has also seen a 19% increase during the same period.

The concentration of IT companies in these areas has fueled competition for prime office spaces, contributing to the high demand for properties in Hyderabad’s western IT corridor.

Facebook’s lease renewal forms part of a broader trend of high-value commercial real estate deals in Hyderabad. Google also renewed its lease for a 3.7 lakh sq ft office space at Salarpuria Sattva Knowledge Capital – Block 1 for ₹2.02 crore per month. Other major companies, including Qualcomm India, LTI Mindtree, and IBM India, secured office spaces in 2024, with rents ranging from ₹70 lakh to ₹3.15 crore per month.

Prominent real estate companies such as Divija Commercial Properties, RMZ Infotechpark, and Midas Projects Private Limited have facilitated these transactions, further indicating the strong demand for office spaces in the city.

Hyderabad’s growing appeal is attributed to several key factors: a favorable business environment, a skilled talent pool, and real estate prices that remain more competitive compared to other IT hubs like Bengaluru and Gurgaon. Additionally, the city’s availability of large, contiguous office spaces is particularly attractive to tech firms and other corporate entities.

The Telangana state government has also implemented initiatives aimed at attracting investments in the technology sector, further boosting the city’s commercial real estate prospects.

The renewal of leases by high-profile companies such as Facebook and Google signals continued confidence in Hyderabad’s commercial real estate market. With rents on the rise, the city is establishing itself as a growing business hub. However, this surge in demand may drive rents higher, which could potentially make it difficult for smaller businesses to compete for premium office spaces.

In response, developers and policymakers will need to ensure a balanced approach to commercial space development. While demand remains strong, efforts will be required to manage both supply and affordability to cater to the diverse needs of businesses, ensuring the city maintains its competitive edge

Image source-pagetraffic.in