Hyderabad Overtakes Bengaluru As Southern India’s Luxury Housing Capital

Hyderabad has emerged as Southern India’s leading luxury housing market. The city has surpassed Bengaluru in both sales value and transaction volumes in the ultra-premium residential segment. As per the latest Southern India High-End Luxury Housing report FY’26 released by CRE Matrix and India Sotheby’s International Realty.

The report highlights and tracks the primary residential sales which were priced above Rs 10 crore across Hyderabad, Bengaluru, and Chennai. The report revealed that Hyderabad recorded luxury home sales worth Rs 8,562 crore during the financial year 2026 (FY2026), which were achieved through 625 transactions. This makes the Hyderabad market the largest luxury housing market in southern India by a huge margin. Meanwhile, Bengaluru registered sales worth Rs 2,087 crore through 125 transactions, whereas Chennai recorded sales worth of Rs 727 crore through the sale of 58 units.

The findings in the report challenge the long-held perception that Bengaluru dominates South India’s premium residential landscape. As per the report, Hyderabad’s luxury housing market has expanded by nearly 3.5 times over the last four years. The transaction values have risen from Rs 2,447 crore in FY’22 to Rs 8,562 crore in FY26.

Why Did Hyderabad Experience This Sudden Growth?

One of the most prominent reasons why Hyderabad has experienced 3X growth is due to its value proposition. Buyers spending Rs 10 crore in the city receive an average size of 6,210 square feet. This is nearly 58 per cent more than what is available in Bengaluru at 3,930 square feet, for the same budget. The report highlights that this space acts as a point of advantage as a key factor attracting affluent buyers.

The city also offers a luxury mix of units offered in this budget range. More than half of Hyderabad’s luxury apartment sales involve homes which are larger than 8,000 square feet. 40 per cent of the total luxury sales include villas, row houses, and penthouses in FY26 alone. In the same financial year, Hyderabad sold 346 apartments exceeding 8,000 square feet, whereas in Bengaluru, only 19 such units were sold.

Micro-Markets Became The Luxury Hub

The report cited that micro-markets such as Kokapet, Nanakramguda, Manchirevula, Khajaguda, and Kukatpally have emerged as a main attraction of major luxury housing hubs. Kokapet alone generated Rs 1,298 crore in luxury sales. This accounted for nearly 62 per cent of Bengaluru’s entire luxury housing market.

While Hyderabad is leading in scale, Bengaluru remains the fastest-growing luxury market in the south. The city had recorded a 49 per cent increase on a year-on-year basis between FY25 and FY26. The transactions rose from 84 units to 125 units. The South-West corridor emerged as the prominent region in the market, with sales value increasing from Rs 11 crore to Rs 1,202 crore in just a year.

“The story of South India's luxury housing is really the story of three cities with completely different identities. Hyderabad has scale and is building a new luxury city from scratch in corridors like Kokapet. Bengaluru has velocity and a rising growth curve. The top-end launches are now spreading to corridors that didn't exist on the luxury map two years ago. We believe this is the market to watch out for. And Chennai continues to anchor its luxury in old legacy, until the capital of Tamil Nadu catches up with its competitors on Grade A Office leasing,” adds Ashwin Chadha, CEO, India Sotheby's International Realty.

The report concludes that South India’s luxury housing market is no longer just confined or defined by a single city. While Hyderabad continues to dominate the ultra-luxury segment, Bengaluru’s rapid growth trajectory is defined by a competitive landscape in the coming years.