Southern India is following the footsteps of Delhi-NCR and Mumbai markets amid rising demand for ultra luxury residential properties.  and Bengaluru have emerged as the bright spots of ultra luxury housing in South India. Kokapet in Hyderabad and Rajanukunte in Bengaluru have emerged as the leading micro-markets for ultra-premium developments. 

Bengaluru has earned the distinction of being the fastest growing market in South India in terms of momentum, recording a 52% year-on-year growth in unit sales. However, it is Hyderabad which has firmly established itself as the undisputed leader of South India’s ultra-luxury residential market. According to a latest report by Sotheby’s International Realty and CRE Matrix on South India’s High -End Luxury Housing Market, Hyderabad has recorded an unprecedented INR 8562 crore in transactions for homes priced at INR 10 crore and above during FY26, against Bengaluru’s sales value of INR 1957 crore. The report highlights a significant shift in market dynamics, with Hyderabad now commanding a massive lead in both value and volume over traditional tech hubs. 

Talking of the tale of three cities in terms of scale, velocity, and prestige, Hyderabad’s luxury segment has seen a structural transformation, growing 3.5x from INR 2,447 crore to INR 8,562 crore in just four years. A defining feature of the Hyderabad market is the scale of its product; nearly 57% of sales are for apartments larger than 8,000 sq. ft., with villas and row houses accounting for 40% of the FY’26 total value.

 Bengaluru’s luxury market, on the other hand, is defined by rapid acceleration. Unit sales jumped from 84 in FY’25 to 128 in FY’26. The city is witnessing a “discovery” of new luxury geographies, with the North-West corridor alone surging from ₹11 crore to ₹654 crore in a single year.

In contrast, Chennai continues to operate as a prestige-driven niche market, recording ₹727 crore in sales. Anchored in legacy central addresses like Abhiramapuram and Alwarpet, Chennai’s luxury growth remains structurally capped by its relatively lower Grade A office leasing which means a thinner pipeline of high-income buyers, with fewer senior tech and BFSI leaders driving top-end luxury demand.

The Space Arbitrage One of the report’s most striking findings is the “value-for- space” ratio. For a ₹10 crore investment, a buyer in Hyderabad receives approximately 6,210 sq. ft. — nearly 60% more floor space than in Bengaluru (3,930 sq. ft.) and significantly more than in Chennai (4,290 sq. ft.).

Key Findings & Highlights:

·       Hyderabad: ₹8,562 Cr sales value; 625 units sold. Top locality: Kokapet (₹1,298 Cr).

·       Bengaluru: ₹1,957 Cr sales value; 128 units sold. Top locality: Rajanukunte (₹572 Cr).

·       Chennai: ₹727 Cr sales value; 58 units sold. Top locality: Abhiramapuram (₹226 Cr).

·       Product Mix: 355 apartments sold in Hyderabad were above 8,000 sq. ft., compared to just 19 in Bengaluru.

·       Growth: Bengaluru (+52%), Chennai (+49%), and Hyderabad (+10%) in YoY unit sales growth.

According to Ashwin Chadha, CEO, India Sotheby’s International Realty, luxury housing in South India, is a story of three distinct identities- Hyderabad has the scale, Bengaluru has the velocity while Chennai remains anchored in legacy prestige. Going forward, while Hyderabad has set a new benchmark for ultra-luxury volume in Southern India, Bengaluru is the market to watch for immediate growth.

Abhishek Kiran Gupta, Co-Founder & CEO, CRE Matrix believes that South India’s luxury market has reached a pivotal inflection 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”.