Hyderabad has emerged as South India’s leading ultra-luxury housing market, recording ₹8,562 crore worth of ₹10 crore-plus home sales in FY26, according to the latest Southern India High-End Luxury Housing Report by India Sotheby’s International Realty India and CRE Matrix.
The city outpaced Bengaluru by a wide margin, with luxury home sales more than four times higher than Bengaluru’s ₹1,957 crore, reinforcing Hyderabad’s dominance in the segment.
A key highlight of the report is Hyderabad’s ‘space arbitrage’ advantage. Buyers purchasing a ₹10 crore home in Hyderabad get around 6,210 sq ft of space, nearly 60% more than Bengaluru’s 3,930 sq ft and significantly higher than Chennai’s 4,290 sq ft.
Scale remains one of Hyderabad’s defining characteristics. Around 57% of ultra-luxury sales in the city were apartments larger than 8,000 sq ft, while villas and row houses contributed nearly 40% of the total transaction value in FY26.
The report points to a clear shift in market dynamics, with Hyderabad emerging ahead of traditional tech hubs in both value and transaction volumes.
However, Bengaluru continued to show strong momentum, registering a 52% year-on-year rise in unit sales, indicating rapid expansion of high-end housing demand across emerging corridors.
Hyderabad versus Bengaluru
Hyderabad has also benefited from strong infrastructure expansion. Areas such as the Financial District, Kokapet, Gachibowli, and Nanakramguda have witnessed rapid growth driven by IT and global capability centres, while new road networks, metro expansion plans, and commercial hubs have improved connectivity. Many high-net-worth buyers are choosing homes close to office corridors and international schools, experts say.
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Another factor is supply. has seen a large pipeline of premium villa communities and branded luxury developments over the past few years. Bengaluru, despite strong demand, faces land scarcity in core markets, traffic congestion and infrastructure bottlenecks, which have pushed prices sharply higher without necessarily delivering larger living spaces.
Developers also say Hyderabad’s luxury market is attracting entrepreneurs, startup founders, pharma executives and NRIs who view the city as offering better long-term appreciation potential at current price points. Bengaluru continues to remain India’s largest office market and a major housing destination, but its ultra-luxury inventory remains relatively more limited and concentrated in select micro-markets.
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In addition, Hyderabad’s relatively planned urban expansion has enabled developers to create large-format gated communities with amenities that appeal to affluent buyers, something increasingly difficult in densely built parts of Bengaluru.
“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.
However, a few real estate experts caution against blanket comparisons between the two markets. They say Bengaluru has fewer unsold homes and steady buying, suggesting prices are likely to remain stable and may rise, especially in areas with good infrastructure. On the other hand, Hyderabad has more homes available, giving homebuyers more choices and better chances to negotiate prices.
“Risk assessment depends significantly on investment horizon, target micro market, and portfolio diversification objectives. Each city benefits from strong governance frameworks, infrastructure investment momentum, and demographic tailwinds. Investors need to evaluate micro market-specific fundamentals, developer track records, and environments rather than considering city-level generalisations about risk profiles,” said an expert, pointing out that both markets benefit from infrastructure push, governance frameworks, and demographic demand.