Hyderabad has emerged as the leading market for ultra-luxury housing in South India, recording impressive transactions valued at ₹8,562 crore for properties priced above ₹10 crore in FY26. This significant figure is highlighted in a recent report by India Sotheby's International Realty and CRE Matrix, which underscores the city's stronghold in this segment. In stark contrast, Bengaluru experienced a rapid growth rate in ultra-luxury housing, achieving a year-on-year increase of 52% in unit sales. The city recorded a total transaction value of ₹1,957 crore, reflecting a burgeoning demand for luxury properties. While Hyderabad's sales value surpasses that of Bengaluru, the latter’s remarkable growth trajectory suggests a rising interest in high-end real estate.
Over the past four years, Hyderabad's luxury housing sector has seen substantial expansion, with transaction values soaring from ₹2,447 crore to ₹8,562 crore. A noteworthy trend in this market is the preference for spacious properties; more than half of the transactions involve apartments exceeding 8,000 square feet. Additionally, villas and row houses constitute approximately 40% of the overall transaction value, indicating a diverse range of offerings that cater to affluent buyers. This shift towards larger living spaces in Hyderabad is a key contributor to its status as the top destination for luxury real estate in South India.
Bengaluru's luxury housing market, while trailing Hyderabad in total sales value, is characterized by dynamic growth in emerging micro-markets, particularly in the north-west corridor. This area has witnessed a sharp increase in transaction values over the past year, highlighting a trend of luxury housing development extending beyond traditional prime locations. As a result, Bengaluru is positioning itself as a competitive player in the ultra-luxury segment, even as it grapples with space constraints compared to Hyderabad.
On the other hand, Chennai continues to occupy a smaller niche within the luxury housing market, achieving sales of ₹727 crore in ultra-luxury properties during FY26. Demand in Chennai remains concentrated around established central neighborhoods such as Abhiramapuram and Alwarpet, with limited growth potential compared to its counterparts. The report further reveals significant disparities in space availability across these cities; for a ₹10 crore investment, buyers in Hyderabad can expect an average home size of approximately 6,200 square feet, contrasting sharply with Bengaluru’s average of around 3,900 square feet and Chennai’s 4,300 square feet. This difference in property size underscores Hyderabad's appeal to high-end buyers seeking more spacious living options, solidifying its lead in the luxury housing market in South India.