Hyderabad tops South India’s ultra-luxury housing market with ₹8,562 crore sales in FY26; Bengaluru sees fastest growth at 52%

Hyderabad has emerged as South India’s clear leader in the ultra-luxury housing segment, clocking ₹8,562 crore in sales of homes priced above ₹10 crore in FY26, according to a joint report by India Sotheby’s International Realty (India SIR) and CRE Matrix. The city not only outpaced peers in value terms but also dominated volumes, selling 625 high-end units during the year.

The report underscores a decisive shift in the region’s luxury housing dynamics, with Hyderabad building a commanding lead over traditional technology hubs. While Bengaluru recorded a significantly lower sales value of ₹1,957 crore, it stood out as the fastest-growing market, with a sharp 52% year-on-year rise in unit sales.

Hyderabad’s scale vs Bengaluru’s velocity

Hyderabad’s luxury market has undergone a structural transformation, expanding 3.5 times from ₹2,447 crore in FY22 to ₹8,562 crore in FY26. A key differentiator is the scale of offerings—around 57% of transactions were for apartments exceeding 8,000 sq. ft., while villas and row houses contributed 40% to total sales value.

Bengaluru, on the other hand, is witnessing rapid geographic expansion. Unit sales rose from 84 in FY25 to 128 in FY26, driven by the emergence of new luxury corridors. The North-West corridor alone saw a dramatic jump in deal value from ₹11 crore to ₹654 crore within a year, signalling strong buyer interest beyond established micro-markets.

Chennai remains a niche, prestige-led market

Chennai continues to operate as a smaller, prestige-driven luxury market, recording ₹727 crore in sales and 58 units in FY26. Demand remains concentrated in legacy neighbourhoods such as Abhiramapuram and Alwarpet, with limited expansion due to a relatively smaller base of high-income buyers linked to Grade A office absorption.

Space advantage drives Hyderabad’s appeal

A key insight from the report is the “value-for-space” advantage. For a ₹10 crore investment, buyers in Hyderabad get approximately 6,210 sq. ft.—nearly 60% more than Bengaluru (3,930 sq. ft.) and significantly higher than Chennai (4,290 sq. ft.).

Kokapet in Hyderabad (₹1,298 crore sales) and Rajanukunte in Bengaluru (₹572 crore) have emerged as leading micro-markets for ultra-premium developments.

Industry leaders note that while Hyderabad has set the benchmark in scale and volume, Bengaluru’s rapid growth trajectory signals strong near-term momentum. For investors, the evolving landscape suggests a city-specific strategy, with Hyderabad offering space-driven value and Bengaluru delivering high-growth potential.