Hyderabad has emerged as South India’s top ultra-luxury housing market, clocking ₹8,562 crore in ₹10 crore-plus home sales in FY26, with buyers getting nearly 60% more space than in Bengaluru for the same price, according to the latest Southern India High-End Luxury Housing Report by India Sotheby’s International Realty (India SIR) and CRE Matrix.
A key highlight of the report is the ‘space arbitrage’ advantage: for a ₹10 crore home, buyers in Hyderabad get about 6,210 sq. ft., nearly 60% more than Bengaluru (3,930 sq. ft.) and significantly higher than Chennai (4,290 sq. ft.).
The report highlights a clear shift in market dynamics, with Hyderabad establishing a strong lead over traditional tech hubs in both value and volume. The city recorded over ₹8,562 crore in ultra-luxury home sales, more than four times Bengaluru’s ₹1,957 crore, reinforcing its dominance in the segment.
However, Bengaluru showed strong momentum, registering a 52% year-on-year rise in unit sales, indicating rapid expansion of high-end housing into emerging corridors.
Hyderabad led the southern ultra-luxury housing market with sales of ₹8,562 crore from 625 units, with Kokapet emerging as the top-performing locality at ₹1,298 crore. Bengaluru followed with ₹1,957 crore from 128 units, led by Rajanukunte at ₹572 crore, while Chennai recorded ₹727 crore from 58 units, with Abhiramapuram contributing ₹226 crore, it noted.
Hyderabad dominates in large format homes; Bengaluru posts highest y-o-y increase in sales
The product mix highlights Hyderabad’s dominance in large-format homes, with 355 apartments above 8,000 sq. ft. sold compared to just 19 in Bengaluru. In terms of growth, Bengaluru posted the highest year-on-year increase in unit sales at 52%, followed by Chennai at 49% and Hyderabad at 10%, the report noted.
The report points to a clear divergence in South India’s ultra-luxury housing markets. Hyderabad has undergone a structural transformation, with luxury sales growing nearly 3.5x from ₹2,447 crore to ₹8,562 crore in four years. A defining feature of the city is scale, around 57% of sales are in apartments above 8,000 sq. ft., with villas and row houses contributing about 40% of total value in FY26.
Bengaluru, meanwhile, is driven by rapid expansion, with unit sales rising from 84 in FY25 to 128 in FY26. The North-West corridor has emerged as a breakout luxury cluster, surging from ₹11 crore to ₹654 crore in a year, reflecting the discovery of new high-end micro-markets, it said.
remains a niche, prestige-led market, recording sales of ₹727 crore and anchored in established central locations such as Abhiramapuram and Alwarpet. Its growth is relatively constrained by a thinner base of high-income buyers, including senior tech and BFSI leaders, who drive top-end luxury demand, it said.
“The story of South India’s luxury housing is a story of three distinct identities. has the scale to build an entire luxury ecosystem in corridors like Kokapet. Bengaluru has the velocity, with new corridors emerging at a rapid pace. Chennai remains anchored in legacy prestige. We believe Bengaluru is the market to watch for immediate growth. At the same time, Hyderabad has set a new benchmark for ultra-luxury volume in southern India,” said Ashwin Chadha, CEO, India Sotheby’s International Realty.
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“South India’s luxury market has reached a pivotal inflection point. 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 and CEO, CRE Matrix.
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