Hyderabad Dominates Premium Real Estate Segment While Bengaluru Emerges as Fastest-Growing Luxury Market
South India’s residential real estate market is witnessing an unprecedented surge in ultra-luxury housing demand, with high-value home sales accelerating across major metropolitan cities. According to a joint report released by India Sotheby's International Realty and CRE Matrix, Hyderabad, Bengaluru and Chennai collectively recorded 811 ultra-luxury residential transactions worth ₹11,246 crore during FY26.
The report signals a major shift in India’s premium housing landscape, where demand is increasingly moving beyond Mumbai and Delhi-NCR toward emerging luxury hubs in southern India.
Industry experts believe rising wealth creation, strong technology-led economic growth, infrastructure expansion and changing lifestyle preferences are driving the sharp increase in demand for premium homes priced above ₹10 crore.
Hyderabad Becomes South India’s Luxury Housing Leader
Hyderabad emerged as the undisputed leader in South India’s ultra-luxury housing market, accounting for nearly 77 per cent of the region’s total premium sales.
The city recorded:
- 625 ultra-luxury home sales
- Total transaction value of ₹8,562 crore
Property consultants attribute Hyderabad’s dominance to its unique combination of affordability, larger living spaces and rapidly expanding infrastructure ecosystem.
At a ₹10 crore budget, buyers in Hyderabad can purchase nearly 6,210 square feet of residential space, significantly higher than what is available in competing metro cities. This value advantage has become a major attraction for affluent buyers seeking expansive villas, penthouses and luxury gated residences.
Analysts also point to Hyderabad’s strong IT sector growth, rising startup ecosystem and increasing presence of multinational corporations as key drivers of wealth creation supporting premium real estate demand.
Bengaluru Emerges as the Market to Watch
Bengaluru recorded 128 ultra-luxury residential transactions worth ₹1,957 crore during FY26.
While transaction volumes remain lower than Hyderabad, industry experts believe Bengaluru is witnessing some of the strongest long-term growth momentum in India’s luxury housing segment.
The city’s premium real estate demand is being fueled by:
- Rapid wealth generation from the technology sector
- Startup founders and senior corporate executives
- Expansion of global capability centres (GCCs)
- Rising demand for lifestyle-driven communities
Real estate consultants describe Bengaluru as a “high-velocity” luxury market, where emerging micro-markets and infrastructure upgrades are rapidly reshaping premium housing demand.
Developers are increasingly focusing on ultra-premium villas, branded residences and integrated townships catering to high-income buyers.
Chennai Maintains Stable Luxury Demand
Chennai registered 58 ultra-luxury residential sales worth ₹727 crore during the financial year.
Although the city’s luxury market remains smaller compared to Hyderabad and Bengaluru, Chennai continues to attract buyers seeking long-term asset stability, legacy ownership and premium coastal properties.
Industry observers note that Chennai’s affluent buyers are generally more conservative and focused on long-term value preservation rather than speculative investments.
The city’s premium housing demand remains concentrated in established residential corridors with strong social infrastructure and connectivity advantages.
Larger Homes Driving Buyer Preferences
One of the key trends highlighted in the report is the growing preference for larger residential spaces among ultra-high-net-worth individuals.
The report noted that for the same ₹10 crore investment:
- Hyderabad offers around 6,210 sq ft of residential space
- Chennai offers approximately 4,290 sq ft
- Bengaluru offers nearly 3,930 sq ft
The increasing importance of home offices, wellness amenities, private recreational spaces and low-density living has significantly influenced buyer preferences after the pandemic era.
Experts believe affluent homebuyers are now prioritising space, privacy and lifestyle infrastructure over traditional location-driven purchasing decisions.
Emerging Luxury Corridors Gain Momentum
The report identified several rapidly growing luxury micro-markets across South India that are attracting both end-users and investors.
In Hyderabad, Kokapet has emerged as one of the leading ultra-premium residential hubs due to its proximity to major IT corridors, premium infrastructure and large-scale luxury developments.
Similarly, Rajanukunte is gaining traction as an emerging luxury destination in Bengaluru, supported by expanding connectivity and integrated township projects.
Industry experts believe these developing micro-markets could witness substantial price appreciation over the next few years as infrastructure and commercial activity continue to expand.
Luxury Real Estate Becoming an Investment Asset
Analysts say ultra-luxury housing is increasingly being viewed not only as a lifestyle purchase but also as a long-term wealth preservation and investment asset.
High-net-worth individuals are diversifying portfolios through premium real estate investments amid growing volatility in global financial markets.
Developers are also witnessing rising interest from non-resident Indians (NRIs), entrepreneurs and business families looking for trophy assets in fast-growing urban centres.
The demand for branded residences, smart homes and exclusive gated communities is expected to rise further as India’s affluent population continues to expand.
South India’s Premium Housing Cycle Expected to Continue
Real estate consultants believe South India’s luxury housing market is entering a new structural growth phase supported by strong economic fundamentals, technology-led wealth creation and improving urban infrastructure.
Hyderabad’s scale, Bengaluru’s rapid momentum and Chennai’s stability together reflect the evolving dynamics of India’s premium real estate sector.
Market experts expect ultra-luxury housing demand across South India to remain strong over the next few years, especially as developers launch larger premium projects targeting affluent domestic and global buyers.