Microsoft has finalized a major office lease in Hyderabad’s Gachibowli, one of India’s most prominent IT corridors. The company has taken up 2.64 lakh sq ft of office space at Phoenix Centaurus, a Grade A commercial development, at a monthly rental of ₹5.4 crore. The deal, effective from July 2025, reflects sustained demand for large-scale corporate occupancies in the city’s prime micro markets.
The lease spans a five-year term and covers the third and fourth floors of the complex. According to market filings, the agreement includes an annual escalation of 4.8% on rentals, in line with prevailing Grade A office market practices in the region. This transaction ranks among the largest commercial real estate deals concluded in Hyderabad in 2025, underscoring the city’s growing significance in India’s technology and services landscape.
Hyderabad has emerged as a strategic base for global corporations due to its business-friendly policies, skilled talent pool, and robust infrastructure. The Gachibowli–Financial District cluster, where Phoenix Centaurus is located, has become a preferred location for multinationals, particularly in the technology, financial services, and pharmaceutical sectors. The area offers proximity to other large corporate campuses, metro connectivity, and established social infrastructure, making it attractive for both employers and employees.
For Microsoft, which already has a significant presence in Hyderabad through its India Development Center, the lease at Phoenix Centaurus represents both expansion and consolidation. The company has consistently used Hyderabad as a base for global product development and engineering functions, and its continued investment in prime office space reflects long-term confidence in the city’s ecosystem.
The transaction is particularly noteworthy given the current environment of hybrid work models and measured corporate expansions. Despite evolving workplace strategies, large multinationals continue to secure premium office stock in high-demand submarkets. Analysts highlight that such deals indicate a shift toward core, high-quality office spaces, with occupiers preferring flexible but future-proof footprints.
At an average rental of approximately ₹204 per sq ft per month, the lease aligns with prevailing Grade A office rentals in Gachibowli. With the agreed escalation, the total rental outgo over the five-year term will significantly exceed ₹325 crore, making it one of the most valuable office leasing commitments by a single tenant in recent quarters.
Hyderabad’s office market has recorded strong absorption in 2025, led by demand from global capability centers (GCCs), IT companies, and BFSI firms. Large-ticket leases such as Microsoft’s are viewed as positive indicators for institutional investors and developers, reinforcing confidence in the stability of the city’s commercial real estate segment.
Phoenix Centaurus, part of the Phoenix Group’s commercial portfolio, has positioned itself as a premium destination for marquee occupiers. The project offers large floor plates, sustainability features, and international-grade amenities, meeting the compliance and operational needs of global corporations. With Microsoft as a tenant, the development gains further visibility in the competitive Hyderabad office space market.
Industry experts note that with Hyderabad consistently drawing multinational interest, upcoming quarters are likely to witness more consolidation-led leasing, where occupiers secure contiguous and efficient spaces to optimize operations. Microsoft’s commitment through a five-year lease is expected to encourage similar decisions from other large players seeking to strengthen their India footprint.
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