Hyderabad has emerged as the clear leader in South India’s ultra-luxury housing segment, clocking a record ₹8,562 crore in sales for homes priced above ₹10 crore during FY’26, according to a joint report by India Sotheby’s International Realty and CRE Matrix.
The city has outperformed traditional tech hubs by a wide margin, selling over 4 times the value of luxury homes compared to Bengaluru, which recorded ₹1,957 crore in transactions during the same period.
Despite trailing in overall value, Bengaluru stood out as the fastest-growing luxury market, with a 52% year-on-year surge in unit sales, signaling rapid expansion into new high-end residential corridors.
Hyderabad’s Dominance Driven by Scale
Hyderabad’s luxury housing market has undergone a significant transformation, growing 3.5 times in just four years—from ₹2,447 crore to ₹8,562 crore. A key driver of this growth is the large size of properties, with nearly 57% of units exceeding 8,000 sq. ft.
High-end villas and row houses contributed 40% of the total transaction value, indicating strong demand for spacious, premium living. Areas like Kokapet have emerged as major luxury hubs, alone accounting for ₹1,298 crore in sales.
Bengaluru’s Growth Momentum
While smaller in size, Bengaluru’s luxury market is expanding rapidly. The number of ultra-luxury units sold increased from 84 in FY’25 to 128 in FY’26, reflecting strong buyer momentum.
Emerging micro-markets like Rajanukunte have become hotspots, contributing ₹572 crore in sales. Notably, the city’s North-West corridor witnessed explosive growth—from ₹11 crore to ₹654 crore within a year, highlighting new geographic expansion.
Chennai: A Niche Prestige Market
Chennai continues to operate as a prestige-driven but niche luxury market, with total sales of ₹727 crore in FY’26. Prime locations such as Abhiramapuram and Alwarpet dominate this segment.
However, growth remains relatively constrained due to a smaller pool of high-income buyers, linked to comparatively lower Grade A office leasing activity in the city.
“Value for Space” Advantage
One of the most striking insights from the report is the space advantage in Hyderabad. For an investment of ₹10 crore:
- Buyers get ~6,210 sq. ft. in Hyderabad
- ~3,930 sq. ft. in Bengaluru
- ~4,290 sq. ft. in Chennai
This “value-for-space” proposition has become a major factor attracting ultra-high-net-worth buyers to Hyderabad.
Market Outlook
Industry experts believe South India’s luxury housing market is entering a new phase of differentiation:
- Hyderabad offers scale and volume leadership
- Bengaluru brings speed and expansion
- Chennai retains legacy prestige positioning
The report suggests that investors will need city-specific strategies, as each market evolves with distinct demand drivers and growth trajectories.
Key Highlights
- Hyderabad: ₹8,562 Cr sales | 625 units | Top locality: Kokapet
- Bengaluru: ₹1,957 Cr sales | 128 units | Top locality: Rajanukunte
- Chennai: ₹727 Cr sales | 58 units | Top locality: Abhiramapuram
- Growth (YoY): Bengaluru +52%, Chennai +49%, Hyderabad +10%
Also Read: Godrej Properties enters Hyderabad
