Luxury Housing Market Booms in Hyderabad, Bengaluru, and Chennai: FY26 Sales Reach US$ 1.22 Billion
India’s luxury housing segment witnessed strong momentum in FY26, with over 800 ultra-luxury homes sold across Hyderabad, Bengaluru, and Chennai, generating total sales of Rs. 11,246 crore (US$ 1.22 billion). According to a joint report by India Sotheby’s International Realty and CRE Matrix, a total of 811 homes priced at Rs. 10 crore and above were sold during the year. This robust demand was driven by high-net-worth individuals and affluent buyers.
Hyderabad emerged as the leading market, accounting for 625 units valued at Rs. 8,562 crore (US$ 926.22 million), followed by Bengaluru with Rs. 1,957 crore (US$ 211.70 million) and Chennai with Rs. 727 crore (US$ 78.64 million). The strong performance of the luxury housing segment highlights a structural shift in India’s real estate market towards premiumisation. This shift is driven by rising incomes, wealth creation, and changing consumer preferences.
Buyers are increasingly seeking larger homes, better amenities, and prime locations, particularly in major urban centres. The report also indicates variations in market dynamics across cities. Hyderabad leads in transaction volumes due to relatively larger home sizes and competitive pricing, while Bengaluru demonstrates strong demand momentum driven by its technology-driven economy. The growth in luxury housing is further supported by increased investments in high-end residential projects, improved infrastructure, and growing demand from Global Capability Centres (GCCs) and senior professionals.
Developers are focusing on premium and ultra-luxury segments to cater to affluent buyers, leading to higher transaction values despite moderate unit sales growth. Going forward, the luxury housing segment is expected to maintain its upward trajectory, supported by strong economic fundamentals, urbanisation, and sustained demand from high-income groups. This trend reinforces the role of the luxury housing segment as a key growth driver within India’s real estate sector.
India Sotheby’s International Realty, a leading real estate brokerage firm, and CRE Matrix, a market research and consulting firm, collaborated to produce this comprehensive report. The report provides valuable insights into the dynamics of the luxury housing market in India, helping stakeholders make informed decisions. The strong performance of the luxury segment is a positive indicator for the overall health of the real estate market and the economy at large.
