THEBUSINESSBYTES
BUREAU
NEW
DELHI, MAY 5, 2026
Hyderabad has
cemented its position as South India’s luxury housing powerhouse, clocking an
impressive ₹8,562
crore in ultra-premium residential sales during FY’26, even
as Bengaluru emerged as the fastest-growing market with a remarkable 52 per
cent year-on-year jump in unit sales, according to a joint report by India
Sotheby’s International Realty and CRE Matrix.
The findings
underscore a decisive shift in South India’s high-end real estate landscape,
with Hyderabad dominating both in scale and transaction value for homes priced
at ₹10 crore and above. The city’s
luxury segment has expanded 3.5 times over the past four years — from ₹2,447
crore to ₹8,562 crore — driven by robust demand for
expansive residences and the rise of integrated luxury corridors such as
Kokapet. Notably, nearly 57 per cent of transactions in Hyderabad involved
apartments exceeding 8,000 sq. ft., while villas and row houses contributed 40 per
cent of the total value, highlighting a clear preference for spacious, premium
living.
In contrast,
Bengaluru’s luxury housing narrative is being shaped by rapid acceleration and
geographic expansion. While total sales stood at ₹1,957 crore, the city recorded a sharp
rise in unit sales from 84 in FY’25 to 128 in FY’26. Emerging micro-markets,
particularly in the North-West corridor, have seen explosive growth, with
transaction values soaring from ₹11 crore to ₹654 crore within a year — signaling a strong
appetite
for luxury beyond traditional prime zones.
Meanwhile, Chennai
continues to hold its ground as a niche, prestige-driven market with ₹727 crore in sales. Anchored in
legacy neighbourhoods such as Abhiramapuram and Alwarpet, Chennai’s luxury
segment remains selective, shaped by a relatively smaller pool
of high-income buyers due to limited Grade A office expansion and fewer
top-tier corporate leadership inflows.
A defining insight
from the report is the stark “value-for-space” advantage offered by Hyderabad.
A ₹10 crore investment in the city
translates to approximately 6,210 sq. ft. of living space — nearly 60
per cent more than Bengaluru’s 3,930 sq. ft.
and significantly higher than Chennai’s 4,290 sq. ft. — making it a compelling
proposition for both end-users and investors.
Industry leaders
point to distinct identities shaping each market’s trajectory. Hyderabad’s
dominance stems from its ability to deliver scale and create a comprehensive
luxury ecosystem, while Bengaluru’s momentum is fueled by rapid urban expansion
and the discovery of new high-value corridors. Chennai, on the other hand,
continues to draw strength from its established prestige and legacy appeal.
The report also
highlights that Hyderabad recorded 625 units sold in FY’26, with Kokapet
leading at ₹1,298
crore, while Bengaluru’s top-performing locality Rajanukunte contributed ₹572 crore. Chennai saw 58 units
sold, with Abhiramapuram accounting for ₹226 crore. In terms of growth,
Bengaluru led with a 52 per cent surge in unit sales, followed by
Chennai at 49 per cent and Hyderabad at 10 per cent.
As South India’s
luxury housing market reaches a crucial inflection point, the data signals a
nuanced investment landscape where strategies must be tailored city-wise — Hyderabad
for scale and value, Bengaluru for rapid growth, and Chennai for enduring
prestige.
