Microsoft Leases 264k Sq Ft Office Space in Hyderabad for R&D Expansion

Microsoft India has signed a 264,000 sq ft office lease in Hyderabad's financial district, with a base monthly rent of ₹1.77 crore and a total outgoing cost of ₹5.4 crore per month. The deal is for five years and includes an annual escalation of 4.8% and a security deposit of ₹42.15 crore. This marks a significant expansion of Microsoft's Hyderabad footprint and demonstrates the city's appeal to large tech occupiers due to its talent availability, infrastructure, and cost advantage.

Microsoft India has signed a significant office lease in Hyderabad's financial district, further cementing the city's appeal as a tech hub. The lease covers 264,000 square feet of space, with a base monthly rent of ₹1.77 crore and a total outgoing cost of ₹5.4 crore per month. The agreement spans five years, featuring an annual escalation of 4.8% and a security deposit of ₹42.15 crore [1].

This expansion underscores Hyderabad's growing importance as a tech destination, particularly for large occupiers. The city's talent pool, robust infrastructure, and cost advantages are key factors attracting major tech companies. Microsoft's decision to expand its footprint in Hyderabad demonstrates confidence in the city's business environment.

The lease is part of a broader trend in Hyderabad, where office spaces are in high demand. According to recent data, HITEC City alone has over 3,000 startups and numerous office spaces ranging from modern IT parks to coworking spaces and personalized built-to-suit facilities [1]. The area's efficient connectivity, via the Hyderabad Metro Rail and Outer Ring Road, further enhances its appeal.

My Home Twitza, a prominent real estate player in the city, offers a variety of office spaces for rent, including flexible floor plates and modern amenities. Their 20-story building in HITEC City provides 1.2 million square feet of space, with a pre-certification for a Gold Rating from the Indian Green Building Council (IGBC). Amenities include high-speed elevators, a grand entrance lobby, a gymnasium, and a world-class clubhouse [1].

The city's infrastructure and support for businesses are evident in the creation of Special Economic Zones (SEZs) and tax exemptions by the government, encouraging further investment. The co-existence of a flourishing ecosystem, excellent connectivity, and a range of amenities makes HITEC City a top choice for companies [1].

Microsoft's move highlights the strategic importance of Hyderabad in the tech industry. As the city continues to attract major tech players, it is likely to see further growth and development in its real estate market.

References:

[1] https://myhq.in/office-space-for-rent/my-home-twitza-my-home-twitza