Hyderabad Surpasses Bengaluru in Luxury Home Sales with Fourfold Increase in Revenue

South India's Luxury Housing Market Shifts

A joint report by India Sotheby's International Realty and CRE Matrix has revealed that Hyderabad has emerged as South India's top ultra-luxury housing market in FY26, surpassing its peers in both value and scale. Bengaluru, on the other hand, recorded the fastest growth in high-end home sales.

According to the report, luxury housing transactions worth Rs 8,562 crore were recorded in Hyderabad for homes priced at Rs 10 crore and above during FY26. This is more than four times the Rs 1,957 crore recorded in Bengaluru. Chennai trailed behind with Rs 727 crore in sales, reflecting its relatively niche positioning in the segment.

The report highlights a structural shift in South India's premium housing market, with Hyderabad building scale through large-format developments and integrated luxury corridors. The city's Kokapet micro-market emerged as the top-performing location, contributing Rs 1,298 crore in sales, which is a significant portion of the total Rs 8,562 crore in luxury housing transactions.

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Hyderabad's luxury market has expanded 3.5 times over the past four years, driven by demand for larger homes and villa developments. Nearly 57 percent of transactions involved apartments exceeding 8,000 square feet, while villas and row houses accounted for about 40 percent of total sales value.

Bengaluru's market, on the other hand, is being driven by rapid expansion into new corridors. The city recorded a 52 percent year-on-year rise in unit sales, with volumes increasing from 84 units in FY25 to 128 units in FY26. Emerging micro-markets such as Rajanukunte led activity, contributing Rs 572 crore in sales.

Chennai continues to operate as a smaller, prestige-driven luxury market, anchored in established neighbourhoods such as Abhiramapuram and Alwarpet. However, limited expansion in high-income buyer segments has capped its growth relative to Hyderabad and Bengaluru.

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Market observers said Bengaluru's growth reflects a broadening of luxury demand beyond traditional prime locations, supported by the city's strong technology and startup ecosystem. Industry experts say the findings underscore the need for differentiated investment strategies across cities, with Hyderabad offering scale, Bengaluru delivering growth momentum, and Chennai retaining its legacy-driven demand.

As luxury housing demand deepens across South India, developers are expected to continue expanding into new micro-markets, with large-format homes and integrated developments driving the next phase of growth.