Hyderabad Tops South India's Ultra-Luxury Housing Market in FY'26

Hyderabad has become South India's top ultra-luxury housing market. Transactions for homes over Rs 10 crore reached Rs 8,562 crore in FY'26. This segment has grown significantly in four years. Bengaluru shows rapid growth in unit sales. Chennai remains a niche market. Hyderabad offers more space for investment compared to Bengaluru and Chennai.

New Delhi: Hyderabad has emerged as the biggest market of South India’s ultra-luxury residential market, reporting Rs 8,562 crore in transactions for homes priced at Rs 10 crore and above during FY’26.

According to India Sotheby’s International Realty (India SIR) and CRE Matrix, Hyderabad’s luxury segment has grown 3.5x from Rs 2,447 crore to Rs 8,562 crore in just four years, with bigger apartments in demand.

“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,” said Ashwin Chadha, CEO, India Sotheby’s International Realty.

Bengaluru, while smaller in total sales value at Rs 1,957 crore, emerged as the fastest-growing market in terms of momentum, recording a 52% year-on-year growth in unit sales.

Nearly 57% of sales in Hyderabad are for apartments larger than 8,000 sq. ft., with villas and row houses accounting for 40% of the FY26 total value.

In Bengaluru’s luxury market, unit sales jumped from 84 in FY25 to 128 in FY26.

Chennai continues to operate as a prestige-driven niche market, recording Rs 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.

“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,” said Abhishek Kiran Gupta, Co-founder & CEO, CRE Matrix.

For a Rs 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.).