Rs 8,562 crore ultra-luxury sales put Hyderabad ahead, while Bengaluru logs fastest growth
Hyderabad has emerged as the dominant hub for ultra-luxury housing in South India, clocking Rs 8,562 crore in sales of homes priced at Rs 10 crore and above in FY’26, according to a joint report by India Sotheby’s International Realty and CRE Matrix. The city has outpaced its southern peers by a wide margin, signalling a major shift in high-end residential demand patterns.
The report highlights that Hyderabad now leads both in value and scale, far surpassing traditional tech-driven markets. Bengaluru, while trailing in overall transaction value at Rs 1,957 crore, recorded the fastest growth, with a 52 per cent year-on-year rise in ultra-luxury unit sales, indicating strong momentum and geographic expansion.
A key trend underpinning Hyderabad’s dominance is the rapid expansion of large-format homes. The city’s luxury housing market has grown 3.5 times over the past four years, from Rs 2,447 crore to Rs 8,562 crore. Notably, nearly 57 per cent of transactions involved apartments exceeding 8,000 sq ft, while villas and row houses contributed 40 per cent of the total value. Emerging micro-markets such as Kokapet have become focal points for ultra-premium developments.
In contrast, Bengaluru’s growth story is defined by velocity rather than scale. Unit sales rose from 84 in FY’25 to 128 in FY’26, driven by the emergence of new luxury corridors. Areas like Rajanukunte have gained traction, particularly in the city’s North-West corridor, where transaction values surged sharply within a year.
Chennai continues to remain a niche, prestige-driven luxury market, recording Rs 727 crore in sales. Demand in the city is concentrated in established central neighbourhoods such as Abhiramapuram and Alwarpet, with growth constrained by a relatively smaller pool of high-income buyers compared to Hyderabad and Bengaluru.
One of the report’s standout findings is the “value-for-space” advantage. A Rs 10 crore investment in Hyderabad yields approximately 6,210 sq ft of space—significantly higher than Bengaluru’s 3,930 sq ft and Chennai’s 4,290 sq ft, highlighting the city’s competitive positioning for luxury buyers.
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 and CEO of CRE Matrix, added that, “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.”
Among key highlights, Hyderabad recorded 625 ultra-luxury units sold, led by Kokapet with Rs 1,298 crore in transactions. Bengaluru saw 128 units sold, with Rajanukunte contributing Rs 572 crore, while Chennai recorded 58 units, led by Abhiramapuram at Rs 226 crore. Growth trends showed Bengaluru leading with a 52 per cent rise in unit sales, followed by Chennai at 49 per cent and Hyderabad at 10 per cent, underscoring varying stages of market maturity across cities.
