South India’s ₹10 crore+ luxury housing segment has entered a new phase. And the headline is hard to ignore: Hyderabad has taken the lead as the region’s top luxury market.
According to the Southern India High-End Luxury Housing Report FY26 by India Sotheby’s International Realty and CRE Matrix, the city has outperformed Bengaluru and Chennai not just in growth, but in sheer scale, product mix, and value proposition.
Hyderabad Leads the Luxury Market by Scale
Hyderabad recorded ₹8,562 crore in luxury housing sales across 625 units in FY26, making it the largest market in both value and volume.
In comparison, Bengaluru saw ₹1,957 crore across 128 units, while Chennai recorded ₹727 crore across 58 units. This puts Hyderabad significantly ahead, selling nearly five times more units than Bengaluru.
This leadership reflects not just demand momentum, but a deeper structural advantage in how the city is building its luxury housing ecosystem.
Hyderabad’s rise has been consistent over the past few years, with a sharp increase in both transactions and total value.
- FY22: 173 units
- FY23: 406 units
- FY24: 467 units
- FY25: 570 units
- FY26: 625 units
In value terms, the market expanded from ₹2,447 crore to ₹8,562 crore in four years, marking a 3.5× growth trajectory. While FY26 saw a relatively moderate 10% YoY growth, the base itself is now significantly higher than competing cities.
Why Space-to-Value Matters in Luxury Housing
One of Hyderabad’s strongest differentiators in the ₹10 crore+ segment is the sheer amount of space buyers receive for the same price point. On average, a ₹10 crore home in Hyderabad offers around 6,210 sq ft, compared to 3,930 sq ft in Bengaluru and 4,290 sq ft in Chennai. This translates to nearly 58% more space than Bengaluru, positioning Hyderabad as the most attractive market for ultra-luxury buyers prioritizing larger living formats and better value per square foot.
Demand Shift Towards Larger Homes
This space advantage is directly reflected in buyer preferences. Luxury housing demand in Hyderabad is heavily skewed towards expansive residences and low-density living. A significant 57% of homes sold are larger than 8,000 sq ft, with 355 units transacted in this category alone. Additionally, villas and row houses account for 40% of total luxury sales, underlining a strong inclination towards spacious, independent living formats.
In contrast, Bengaluru’s market remains more compact and vertical, with just 19 units sold in the 8,000+ sq ft category. This stark difference highlights how Hyderabad’s supply dynamics and land availability are shaping a fundamentally different luxury housing narrative, one centered around space, scale, and exclusivity.
Key Localities Driving Hyderabad’s Growth
The city’s luxury market is concentrated in high-growth corridors, particularly in the North-West and South-West regions.
- Kokapet: 111 units | ₹1,298 crore
- Manchirevula: 67 units | ₹1,111 crore
- Nanakramguda: 81 units | ₹973 crore
- Khajaguda: 49 units | ₹672 crore
- Kukatpally: 35 units | ₹769 crore
- Puppalaguda: 35 units | ₹429 crore
- Ibrahim Bagh: 38 units | ₹425 crore
Kokapet alone contributes over ₹1,298 crore, which is more than double the top-performing luxury micro-market in Bengaluru. This highlights the depth of demand in Hyderabad.
A Market Built on Scale, Not Legacy
Unlike traditional luxury markets that are anchored in legacy neighborhoods, Hyderabad’s growth is being driven by planned expansion and large-scale developments across emerging corridors. The availability of large land parcels has enabled developers to build expansive, high-end projects, while infrastructure-led growth has opened up new luxury micro-markets across the city.
This is further supported by strong demand from high-income professionals in the technology and BFSI sectors, creating a steady pipeline of luxury homebuyers. As a result, Hyderabad has been able to develop a new-age luxury ecosystem defined by scale, modern planning, and evolving urban corridors, rather than relying on historically established premium locations.
How Hyderabad Compares to Other Southern Markets
Bengaluru: Bengaluru is the fastest-growing luxury market, with a 52% YoY increase in unit sales in FY26. New corridors, especially in the North-West, are rapidly gaining traction. However, the market remains constrained by smaller unit sizes and higher land costs.
Chennai: Chennai continues to operate as a niche luxury market, driven by heritage locations such as Abhiramapuram and Alwarpet. Limited Grade A office growth has kept the pipeline of high-income buyers relatively smaller, restricting overall scale.
Hyderabad’s dominance in FY26 reflects a fundamental shift in luxury housing dynamics. With over ₹8,500 crore in annual sales, 600+ units, and a strong preference for large-format living, the city has established itself as the benchmark for ultra-luxury housing in South India.
As Bengaluru gains momentum and Chennai holds its niche, Hyderabad’s biggest challenge will be sustaining this scale, while continuing to deliver what sets it apart: space, value, and planned luxury living at scale.
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