Synopsis: This city has emerged as the market leader in the ultra-luxurious housing segment in 2026. The city’s larger homes, improved space-value and demand have enabled it to perform better than Bengaluru. This article compares luxury growth sales of 3 major South Indian cities.
Bengaluru had been on the top for the luxury housing market in South India for years. But Hyderabad’s ultra luxury residential market has topped with sales value of ₹8,562 crore and 625 transactions, well above the numbers in Bengaluru and Chennai. Hyderabad has set the bar high for luxury homes in South India, backed by bigger homes and growing luxury corridors.
Hyderabad: The luxury housing hub of South India
Hyderabad topped South India’s ultra-luxury housing segment in FY26. The city made ₹8,562 crore primary sales on homes with price tag of more than ₹10 crore, and had 625 sales. Bengaluru, on the other hand, saw a sales value of ₹2,087 crore and 125 units sold, while Chennai saw a sales value of ₹727 crore with 58 transactions.
In terms of sales value, Hyderabad’s luxury housing market was over four times as big as Bengaluru’s, and in terms of transaction volume, it was almost five times the size of Bengaluru’s luxury housing market. This shows that Hyderabad is not just an emerging luxury market, it has become the biggest market for ultra-premium residential home market in South India.
Four Years of Extraordinary Growth
Over four years, the ultra-luxury housing segment of the city has grown by 3.5x from ₹2,447 crore in FY22 to ₹8,562 crore in FY26, and the growth is being driven by the robust sales value. This consistent performance has enabled Hyderabad to cement its dominance over other cities in the ₹10 crore-plus bracket.
The city also saw a gradual increase in volumes, with luxury home sales growing from 173 units in FY22 to 625 units in FY26. Bengaluru and Chennai have also seen growth in the period, but not as large or as deep a market as Hyderabad. These figures indicate that Hyderabad has transitioned from being a thriving luxury market to the clear top dog in the luxury end of the residential market in South India.
Demand momentum: Reasons why Hyderabad continues to Lead
In addition to being the largest market in Hyderabad, it is also the most popular buying market. The city saw 625 sales of ultra luxury homes in FY26, while Bengaluru sold 125 ultra luxury homes, and Chennai sold 58. The city of Hyderabad sold almost 4 out of 5 homes of ₹10 crore and above in the three metros in the south.
While the unit sales market for Hyderabad is showing a growth of 10% year-on-year from FY25 to FY26, the overall market is far bigger than the others. Bengaluru’s growth rate was 49% and Chennai’s was a whopping 45%, however, the absolute number of transactions were still very low.
Space Advantage for Hyderabad Buyers
The one greatest advantage of Hyderabad is the provision of buyers of more space for the same investment. The report states that the average S.B. area for a luxury home of ₹10 crore in Hyderabad is 6,210 sq ft. When compared to the buyers, they have 4,290 sq ft in Chennai and 3,930 sq ft in Bengaluru.
This translates to Hyderabad having almost 58% more space than Bengaluru for the same ₹10 crore budget. The city’s space-to-price ratio has made it a popular choice among high-net-worth buyers interested in larger homes, but at a more affordable price point.
Areas powering the Luxury boom in Hyderabad
The luxury housing market in Hyderabad is expanding, driven by a few strong performing micro-markets, mainly in the North-West corridor of the city. In FY26, Kokapet was the best performing locality with 111 luxury home sales valued at ₹1,298 crore. Interestingly, Kokapet accounted for almost 62% of Bengaluru’s total luxury sales value of ₹10 crore plus.
Manchirevula (67 units) with ₹1,111 crore, Nanakramguda (81 units) with ₹973 crore, Kukatpally (35 units) with ₹769 crore and Khajaguda (49 units) with ₹672 crore were also major contributors. Some significant activity was also observed at Puppalaguda and Ibrahim Bagh.
Bengaluru and Chennai: Strong but Distant Challengers
Bengaluru is turning out to be the fastest growing luxury market in the region, as the sale of ultra luxury homes increased 49% year-on-year from 84 units in FY25 to 125 in FY26. The North-West corridor of the city has emerged as a major growth driver, with sales value of luxury goods increasing from merely ₹11 crore to ₹1,202 crore in just one year. But even as it grows so fast, the ₹2,087 crore market in Bengaluru is still far smaller than the luxury market in Hyderabad which is worth ₹8,562 crore.
On the other hand, Chennai remains a niche and a prestigious market. Its luxury home segment has seen 58 sales valued at ₹727 crore in the city for FY26, with sales activity in established localities such as Abhiramapuram, Alwarpet, Gopalapuram and Egmore. The report says the leasing market in Lower Grade-A was comparatively small as the number of high income luxury buyers was reduced due to less activity in the leasing market in Lower Grade-A as compared to Hyderabad and Bengaluru.
Conclusion
Hyderabad has emerged as South India’s clear leader in the ₹10 crore-plus housing segment, supported by strong sales volumes, larger homes, and rapidly developing luxury corridors. While Bengaluru is growing quickly and Chennai remains a niche luxury market, Hyderabad currently dominates both scale and demand.
Written by Boyapati Sai Jasmitha
