Hyderabad has firmly established itself as the undisputed leader of South India’s ultra-luxury residential market, recording an unprecedented ₹8,562 crore in transactions for homes priced at ₹10 crore and above during FY’26, according to the latest Southern India High-End Luxury Housing Report released by India Sotheby’s International Realty (India SIR) and CRE Matrix.
The report highlights a significant shift in market dynamics, with Hyderabad now commanding a massive lead in both value and volume over traditional tech hubs.
Bengaluru, while smaller in total sales value at ₹1,957 crore, emerged as the fastest-growing market in terms of momentum, recording a 52% year-on-year growth in unit sales.
A Tale of Three Cities: Scale, Velocity, and Prestige Hyderabad’s luxury segment has seen a structural transformation, growing 3.5x from ₹2,447 crore to ₹8,562 crore in just four years. A defining feature of the Hyderabad market is the scale of its product; nearly 57% of sales are for apartments larger than 8,000 sq. ft., with villas and row houses accounting for 40% of the FY’26 total value.
In contrast, Bengaluru’s luxury market is defined by rapid acceleration. Unit sales jumped from 84 in FY’25 to 128 in FY’26. The city is witnessing a “discovery” of new luxury geographies, with the North-West corridor alone surging from ₹11 crore to ₹654 crore in a single year.
Chennai continues to operate as a prestige-driven niche market, recording ₹727 crore in sales. Anchored in legacy central addresses like Abhiramapuram and Alwarpet, Chennai’s luxury growth remains structurally capped by its relatively lower Grade A office leasing which means a thinner pipeline of high-income buyers, with fewer senior tech and BFSI leaders driving top-end luxury demand.
The Space Arbitrage One of the report’s most striking findings is the “value-for- space” ratio. For a ₹10 crore investment, a buyer in Hyderabad receives approximately 6,210 sq. ft. — nearly 60% more floor space than in Bengaluru (3,930 sq. ft.) and significantly more than in Chennai (4,290 sq. ft.).
Ashwin Chadha, CEO, India Sotheby’s International Realty, said: “The story of South India’s luxury housing is a story of three distinct identities. Hyderabad has the scale, building an entire luxury ecosystem in corridors like Kokapet. Bengaluru has the velocity, with new corridors emerging at speed. Chennai remains anchored in legacy prestige. We believe Bengaluru is the market to watch for immediate growth, while Hyderabad has set a new benchmark for ultra-luxury volume in southern India.”
Abhishek Kiran Gupta, Co-founder & CEO, CRE Matrix, added: “South India’s luxury market has reached a pivotal inflection point. Hyderabad’s leadership is backed by structural fundamentals—space-value and sustained demand for large floor plates. Bengaluru’s transformation proves that premium living is no longer confined to heritage addresses. For investors, the signal is clear: differentiate strategies by city, not just by segment.”
Key Findings & Highlights:
•Hyderabad: ₹8,562 Cr sales value; 625 units sold. Top locality: Kokapet (₹1,298 Cr).
•Bengaluru: ₹1,957 Cr sales value; 128 units sold. Top locality: Rajanukunte (₹572 Cr).
•Chennai: ₹727 Cr sales value; 58 units sold. Top locality: Abhiramapuram (₹226 Cr).
•Product Mix: 355 apartments sold in Hyderabad were above 8,000 sq. ft., compared to just 19 in Bengaluru.
•Growth: Bengaluru (+52%), Chennai (+49%), and Hyderabad (+10%) in YoY unit sales growth.
.png)