Leasing a warehouse in Hyderabad costs the monthly rent plus 18% GST, a refundable security deposit of 3–6 months' rent, one-time stamp duty and registration on the lease deed, a one-time brokerage, and your own fit-out. On a 30,000 sq ft Grade A warehouse at ₹25 per sq ft, the rent alone is ₹7,50,000 a month before GST.
What are the one-time costs?
| Cost | Typical amount | Example: 30,000 sq ft at ₹25 |
|---|---|---|
| Security deposit (refundable) | 3–6 months' rent | ₹22,50,000–₹45,00,000 |
| Brokerage (LeaseGodown) | 1 month's rent + 18% GST | ₹7,50,000 + ₹1,35,000 |
| Stamp duty & registration | Set by the Telangana Registration & Stamps Department on the lease value | Confirm the current slab before budgeting |
| Fit-out | Racking, cabins, power augmentation, safety | Varies by operation |
What are the monthly costs?
- Rent: ₹7,50,000 in the example (30,000 × ₹25).
- GST on rent: 18% (₹1,35,000) if the owner is GST-registered — usually claimable as input credit by GST-registered tenants.
- Maintenance / CAM: sometimes included, sometimes ₹1–3 per sq ft.
- Power and water: metered, paid by the tenant.
How does rent increase over the lease?
Most Hyderabad warehouse leases escalate about 5% every year or 15% every three years. On the example, ₹25 rises to about ₹26.25 in year two and ₹27.56 in year three at 5% a year — budget for it from the start.
How can the total cost be reduced?
Negotiate a rent-free fit-out period (often 1–3 months), a lower deposit in exchange for a longer lock-in, and escalation at 15% every three years rather than 5% yearly. Compare against live asking rents on the warehouse rent table before you counter.