Hyderabad's Luxury Real Estate Booms: HNIs & UHNIs Invest Rs 8,562 Crore in FY 2026

A recent report titled ‘Southern India High-End Luxury Housing’ by India Sotheby’s International Realty (India SIR) and CRE Matrix has revealed a significant surge in luxury residential property purchases in Hyderabad. High-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) have cumulatively invested Rs 8,562 crore in the city's luxury real estate market in FY 2026, with each apartment costing Rs 10 crore or more.

This surge in investment marks a significant shift in market dynamics, positioning Hyderabad as a leading player in the luxury real estate sector, surpassing traditional tech hubs. The report highlights that almost 57% of the sales in Hyderabad’s ultra-luxury real estate market are for apartments larger than 8,000 sq. ft., with villas and row houses accounting for 40% of the total value for FY 26.

In contrast, Bengaluru, which had a smaller total sales value of Rs 1,957 crore, is the fastest-growing market in terms of momentum, with a 52% year-on-year growth in unit sales. Unit sales of luxury houses costing more than Rs 10 crore jumped from 84 in FY 25 to 128 in FY 26. The North-West corridor has seen a dramatic surge from Rs 11 crore to Rs 654 crore in a single year.

The table below shows the key areas in Hyderabad where these luxury properties were purchased:

Hyderabad - Area : Kokapet (North West-Hyderabad) - Units and Value : 111 Units for Rs 1,298 crore total - Area : Manchirevula (South West-Hyderabad) - Units and Value : 67 Units for Rs 1,111 crore total - Area : Nanakramguda (North West-Hyderabad) - Units and Value : 81 Units for Rs 9,73 crore total - Area : Kukatpally (North West-Hyderabad) - Units and Value : 35 Units for total Rs 769 crore - Area : Khajaguda (North West-Hyderabad) - Units and Value : 49 Units for total Rs 6,72 crore - Area : Puppalaguda (North West-Hyderabad) - Units and Value : 35 Units for total Rs 429 crore - Area : Ibrahim Bagh (South West-Hyderabad) - Units and Value : 38 Units for total Rs 425 crore

Ashwin Chadha, CEO of India Sotheby’s International Realty, commented, “The story of South India’s luxury housing is a story of three distinct identities. Hyderabad has the scale, building an entire luxury ecosystem in corridors like Kokapet. Bengaluru has the velocity, with new corridors emerging at speed. Chennai remains anchored in legacy prestige. We believe Bengaluru is the market to watch for immediate growth, while Hyderabad has set a new benchmark for ultra-luxury volume in southern India.”

Abhishek Kiran Gupta, Co-founder & CEO of CRE Matrix, added, “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.”

Key Findings & Highlights: - Hyderabad : Rs 8,562 crore sales value; 625 units sold. Top locality: Kokapet (Rs 1,298 crore). - Bengaluru : Rs 1,957 crore sales value; 128 units sold. Top locality: Rajanukunte (Rs 572 crore). - Chennai : Rs 727 crore sales value; 58 units sold. Top locality: Abhiramapuram (Rs 226 crore).

Why are more HNIs buying luxury houses in Hyderabad instead of other markets?

Ashish Narain Agarwal, Founder and MD of PropertyPistol, explains that Hyderabad’s luxury real estate demand is driven by a structural imbalance between wealth creation and premium housing supply. Hyderabad has seen sustained income growth from the technology and GCC ecosystem, but unlike legacy metros, it is still early in its luxury housing evolution. This creates a space-price arbitrage, where HNIs can access significantly larger assets at comparable ticket sizes.

Agarwal also notes, “Additionally, policy stability, lower speculative distortion, and emerging corridors like Kokapet are making Hyderabad a more predictable and scalable market for capital deployment.”

Vishal Raheja, Managing Director of InvestoXpert Advisors, adds that property buyers are moving away from location-led premiums toward space, privacy, and integrated living. Hyderabad is structurally better positioned to deliver these features, offering larger apartments and villas at scale. This demand is particularly strong among senior professionals and NRIs who prefer low-density environments, making Hyderabad less of a speculative market and more of a consumption-driven luxury housing destination.

What does this mean for luxury housing investors?

From an investor perspective, Hyderabad is demonstrating demand-led expansion in the luxury segment. The scale of high-value transactions and steady growth in volumes indicate a broader and more active buyer base, supporting liquidity at the top end. According to Raheja, the demand appears largely end-user driven, which typically supports price stability and reduces speculative volatility. For investors, this reflects a market transitioning toward maturity, where capital deployment decisions can increasingly rely on demand fundamentals, liquidity visibility, and long-term growth prospects rather than short-term price cycles.

What does this mean for HNI homebuyers?

For HNI homebuyers, Hyderabad offers a combination of scale, choice, and relative pricing efficiency. A significant share of transactions in homes exceeding 8,000 sq. ft., along with strong villa participation, highlights access to larger formats often constrained in other metros. According to Raheja, this reflects a shift toward low-density, spacious living, making Hyderabad an attractive destination for those seeking premium living conditions.