Summary of this article
Hyderabad tops luxury housing sales in FY26
Larger homes drive buyer preference shift
Outpaces Bengaluru and Chennai in value
The Indian luxury real estate landscape is going through several shifts, and Hyderabad has emerged as the one with the most compelling growth rate. What once was a steady market driven by IT and tech upgrades, the city is now positioned as the leading city in the ultra-luxury housing segment. This has outpaced other cities like Bengaluru and Chennai, which have always dominated the markets in scale and value.
As per the latest report by India Sotheby’s International Realty and CRE Matrix, namely, Southern India High-End Luxury Housing Report, Hyderabad has recorded Rs 8,562 crore in luxury home sales, that is units priced above Rs 10 crore and above. This transactional activity is noted for the financial year of 2026 (FY26). Hyderabad has witnessed a sale of 625 units in the same realty category. Most of the sales from these units happened in Kokapet.
On the other hand, Bengaluru recorded sales value of Rs 1,957 crore, with 128 units being sold. Whereas, Chennai recorded sales value of Rs 727 crore with a sale of 58 units.
What sets Hyderabad apart is not just transaction value, but the depth of the luxury market. As per the report, the city’s high-end housing segment has grown by 3.5 times in the last four years. From Rs 2,447 crores to Rs 8,562 crores, a variety of factors contribute to the spike in demand in the city.
One can attribute this growth to the scale of offerings, nearly 57 per cent of the luxury sales made in Hyderabad cross 8,000 square feet. Villas and row houses contribute a solid 40 per cent of the total sales. This is indicative of a clear buyer preference for expansive living. Here, Hyderabad has become a strong competitor for the pre-existing luxury markets.
“South India’s luxury market has reached a pivotal inflexion point. Hyderabad’s leadership is backed by structural fundamentals—space-value and sustained demand for large floor plates. Bengaluru’s transformation proves that premium living is no longer confined to heritage addresses. For investors, the signal is clear: differentiate strategies by city, not just by segment,” says Abhishek Kiran Gupta, Co-founder and CEO, CRE Matrix.
The Bengaluru market has become constrained by higher land costs and even more dense urban plans. This results in smaller unit sizes. For an investment of Rs 10 crore, buyers in Hyderabad get 6,210 square feet, which is nearly 60 per cent more floor space than Bengaluru offers; Bengaluru offers 3,930 square feet for the same amount of money, as per the release. This makes a huge difference in the decision-making by the investors, as the unit size decreases significantly in the same price range provided.
Comparison Between The Three Cities
While Hyderabad remains the leading city in the luxury segment, Bengaluru is emerging as the fastest-growing market. The city recorded 52 per cent on a year-on-year basis. This is followed by Chennai, where the market recorded sales of Rs 727 crore, with Grade A office leasing and a smaller pipeline of high-end buyers.
This intersection highlights how the southern luxury housing is no longer linear. Growth and numbers may be high, but they show and translate a different buyer sentiment.
The dominance of Hyderabad shows signs of stabilising the luxury market, as well as how luxury is perceived in different regionalities, which impacts the demand.
FAQs
Q: How Has Bengaluru Performed In The Same Time Frame?
Bengaluru’s real estate market has been resilient in the first quarter of 2026. This is despite the decrease seen in Q1 growth in the top Indian real estate markets. This can be attributed to the sustained demand that the city experiences, especially in the mid-to-premium housing segments.
Q: Which Areas In Bengaluru Are Leading The Growth?
The four main districts in the city, Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy, had noticeable changes in activity at the district level.
Q: How Is The Real Estate Market In India for Q1 2026?
Sales declined on a year-on-year basis by 4 per cent to 84,827 residential units in Q1 2026 compared to Q1 2025. Launches continued to exceed sales for the 14th consecutive quarter, and the gap between supply and absorption widened to over 10,000 units, the highest since Q1 2023, according to a Knight Frank report
